Ermenegildo Zegna Group Revenues Reach €960 Million¹ in H1 2024, Up 6% Year-on-Year
Ermenegildo Zegna Group reported €960.1 million in revenues for H1 2024, up 6.3% year-over-year. Key highlights:
- ZEGNA brand revenues grew 4.6% YoY to €566.1 million
- Thom Browne revenues declined 19.4% YoY to €166.7 million
- TOM FORD FASHION revenues reached €148.5 million
- Direct-to-Consumer channel drove growth, up 14.8% YoY
- Strong performance in U.S. and EMEA markets
- Greater China Region faced challenges with single-digit negative organic growth
The company remains confident in its long-term strategy despite a challenging 2024 outlook. Cost control initiatives are being implemented across the group while continuing to invest in growth opportunities for its three core brands.
Il Gruppo Ermenegildo Zegna ha riportato €960,1 milioni di fatturato per il primo semestre del 2024, con un aumento del 6,3% rispetto all'anno precedente. Punti salienti:
- I ricavi del marchio ZEGNA sono aumentati del 4,6% rispetto all'anno precedente, arrivando a €566,1 milioni
- I ricavi di Thom Browne sono diminuiti del 19,4% YoY arrivando a €166,7 milioni
- I ricavi di TOM FORD FASHION hanno raggiunto €148,5 milioni
- Il canale Direct-to-Consumer ha guidato la crescita, con un incremento del 14,8% YoY
- Ottime performance nei mercati statunitensi e EMEA
- La Regione della Grande Cina ha affrontato sfide con una crescita organica negativa a una cifra
L'azienda rimane fiduciosa nella sua strategia a lungo termine nonostante un outlook sfidante per il 2024. Sono state implementate iniziative di controllo dei costi in tutto il gruppo, continuando a investire in opportunità di crescita per i suoi tre marchi principali.
El Grupo Ermenegildo Zegna reportó €960,1 millones en ingresos para el primer semestre de 2024, un aumento del 6,3% interanual. Aspectos destacados:
- Los ingresos de la marca ZEGNA crecieron un 4,6% interanual hasta alcanzar €566,1 millones
- Los ingresos de Thom Browne disminuyeron un 19,4% interanual hasta €166,7 millones
- Los ingresos de TOM FORD FASHION alcanzaron €148,5 millones
- El canal Direct-to-Consumer impulsó el crecimiento, con un aumento del 14,8% interanual
- Buen rendimiento en los mercados de EE.UU. y EMEA
- La Región de China Continental enfrentó desafíos con un crecimiento orgánico negativo de un solo dígito
La compañía sigue confiando en su estrategia a largo plazo a pesar de un panorama desafiador para 2024. Se están implementando iniciativas de control de costos en todo el grupo mientras se continúa invirtiendo en oportunidades de crecimiento para sus tres marcas principales.
에르메네질도 제냐 그룹은 2024년 상반기 매출 €960.1백만을 보고했으며, 전년 대비 6.3% 증가했습니다. 주요 하이라이트:
- ZEGNA 브랜드의 매출은 전년 대비 4.6% 증가하여 €566.1백만에 달했습니다.
- 톰 브라운 브랜드의 매출은 전년 대비 19.4% 감소하여 €166.7백만에 도달했습니다.
- TOM FORD FASHION 매출은 €148.5백만에 이르렀습니다.
- Direct-to-Consumer 채널은 14.8%의 성장률을 기록했습니다.
- 미국 및 EMEA 시장에서 강력한 성과를 보였습니다.
- 중국 대륙 지역은 한 자리 수의 부정적인 유기적 성장률로 어려움을 겪었습니다.
회사는 도전적인 2024년 전망에도 불구하고 장기 전략에 대한 확신을 가지고 있습니다. 그룹 전반에 걸쳐 비용 관리 이니셔티브가 시행되고 있으며, 세 가지 핵심 브랜드의 성장 기회에 계속 투자하고 있습니다.
Le Groupe Ermenegildo Zegna a annoncé un chiffre d'affaires de €960,1 millions pour le premier semestre 2024, en hausse de 6,3 % par rapport à l'année dernière. Points forts :
- Les revenus de la marque ZEGNA ont augmenté de 4,6 % en glissement annuel pour atteindre €566,1 millions
- Les revenus de Thom Browne ont diminué de 19,4 % en glissement annuel à €166,7 millions
- Les revenus de TOM FORD FASHION ont atteint €148,5 millions
- Le canal Direct-to-Consumer a contribué à la croissance, avec une augmentation de 14,8 % en glissement annuel
- Excellentes performances sur les marchés américains et EMEA
- La région de la Grande Chine a fait face à des défis avec une croissance organique négative à un chiffre
Malgré des perspectives difficiles pour 2024, l'entreprise reste confiante dans sa stratégie à long terme. Des initiatives de contrôle des coûts sont mises en œuvre dans l'ensemble du groupe, tout en continuant à investir dans des opportunités de croissance pour ses trois marques principales.
Die Ermenegildo Zegna Group berichtete von €960,1 Millionen Umsatz im ersten Halbjahr 2024, was einem Anstieg von 6,3 % im Vergleich zum Vorjahr entspricht. Wichtige Highlights:
- Die Umsätze der Marke ZEGNA stiegen im Jahresvergleich um 4,6 % auf €566,1 Millionen
- Die Umsätze von Thom Browne sanken im Jahresvergleich um 19,4 % auf €166,7 Millionen
- Die Umsätze von TOM FORD FASHION erreichten €148,5 Millionen
- Der Direct-to-Consumer-Kanal trieb das Wachstum voran und stieg im Jahresvergleich um 14,8 %
- Starke Leistungen auf den Märkten in den USA und EMEA
- Die Region Greater China hatte mit einem negativen organischen Wachstum im einstelligen Bereich zu kämpfen
Das Unternehmen bleibt trotz eines herausfordernden Ausblicks auf 2024 zuversichtlich in seiner langfristigen Strategie. Kostensenkungsinitiativen werden im gesamten Konzern umgesetzt, während weiter in Wachstumsmöglichkeiten für seine drei Kernmarken investiert wird.
- Overall revenue growth of 6.3% YoY to €960.1 million in H1 2024
- ZEGNA brand revenues increased 4.6% YoY to €566.1 million
- Direct-to-Consumer channel grew 14.8% YoY
- Strong performance in U.S. and EMEA markets
- TOM FORD FASHION integration progressing with 4.7% organic growth
- Thom Browne revenues declined 19.4% YoY to €166.7 million
- Greater China Region faced challenges with negative organic growth
- Wholesale branded revenues decreased 7.5% YoY
- Challenging outlook expected for remainder of 2024
- Creative Director of TOM FORD FASHION stepping down
Insights
Ermenegildo Zegna Group's H1 2024 financial results demonstrate a mixed performance across its brand portfolio. The overall revenue growth of
The ZEGNA brand showed resilience with
Thom Browne's performance was concerning, with revenues declining
TOM FORD FASHION showed promise with
The Group's focus on DTC channels is paying off, with
While the company remains confident in its long-term strategy, management acknowledges the challenging environment in 2024 and is implementing cost control measures. This proactive approach could help maintain profitability in the face of economic headwinds.
The luxury fashion market is showing signs of regional divergence based on Ermenegildo Zegna Group's results. The strong performance in the Americas (
This geographic disparity highlights the importance of a diversified market presence for luxury brands. The Group's ability to capitalize on strong U.S. and European demand has helped offset weaknesses in China, a traditionally important market for luxury goods.
The shift towards Direct-to-Consumer (DTC) channels is a notable trend, with DTC revenues growing
The challenging performance of Thom Browne, particularly in wholesale, underscores the ongoing evolution of distribution strategies in luxury fashion. Brands are increasingly focused on optimizing their channel mix to balance growth, profitability and brand positioning.
The addition of TOM FORD FASHION to the portfolio adds a new dimension to the Group's market positioning. However, the creative leadership change introduces uncertainty that investors will be watching closely.
Overall, these results reflect a luxury market that remains resilient but increasingly complex, with brands needing to navigate regional economic variations, evolving distribution models and the challenge of maintaining brand equity while driving growth.
-
H1 2024 grew
6% Year-on-Year (YoY), +8% at constant currency and -2.7% organic2.
-
In Q2 2024 revenues rose to
€497 million , +5% YoY, +6% constant currency with flat organic growth:
-
ZEGNA and TOM FORD FASHION recorded solid growth of +
5% YoY and +30% YoY respectively (both achieving +5% organic).
-
Direct-to-Consumer (DTC) drove the Group’s revenues growth with +
10% YoY and +2% organic.
-
United States and EMEA outperformed other geographies.
-
ZEGNA and TOM FORD FASHION recorded solid growth of +
Ermenegildo “Gildo” Zegna, Chairman and CEO of the Ermenegildo Zegna Group, said: “In the first half of the year our Group reached
ZEGNA continued to deliver robust performance with a +
At Thom Browne we are focusing on the strategic projects crucial to unlocking the brand’s long-term potential. The couture show in
At TOM FORD FASHION, we have just announced that Peter Hawkings is stepping down as Creative Director of the brand and his successor will be announced in the near future. As we look to the next phase of the brand’s development, I am today even more optimistic about the bright future of this business.
Looking ahead, I remain fully confident in the strategy we have put in place and the trajectory we are on. Our Group is a custodian of three authentic brands, each with unexplored long-term growth potential. We all recognize that 2024 will remain challenging, which is why we have been working on cost control initiatives across the Group. Nevertheless, we will continue to act with perseverance and firmness, combined with foresight and vision, to pursue our long-term ambitions.”
___________________________________________ |
1 Throughout this press release, revenues for the first half of 2024 are preliminary and unaudited. |
2 Revenues on organic growth basis (organic or organic growth) and on a constant currency basis (constant currency), are non-IFRS financial measures. Constant currency growth is calculated excluding foreign exchange. Organic growth is calculated excluding (a) foreign exchange, (b) acquisitions & disposals, (c) changes in license agreements where the Group operates as a licensee. See the non-IFRS financial measures section starting on page 8 of this press release for the definition and reconciliation of non-IFRS financial measures |
Revenues Analysis for the Six and Three Months Ended June 30, 2024
REVENUES BY SEGMENT (Unaudited)
|
For the six months ended June 30, |
|
H1 2024 vs H1 2023 |
|
For the three months ended June 30, |
|
Q2 2024 vs Q2 2023 |
||||||||
(€ thousands, except percentages) |
2024 |
|
2023(1) |
|
Revenues Growth |
|
Organic Growth |
|
2024 |
|
2023(1) |
|
Revenues Growth |
|
Organic Growth |
Zegna |
660,538 |
|
644,310 |
|
|
|
|
|
335,638 |
|
324,986 |
|
|
|
|
Thom Browne |
166,935 |
|
207,959 |
|
( |
|
( |
|
87,869 |
|
94,708 |
|
( |
|
( |
Tom Ford Fashion |
148,493 |
|
64,027 |
|
|
|
|
|
83,473 |
|
64,027 |
|
|
|
|
Eliminations |
(15,844) |
|
(13,237) |
|
n.m.(2) |
|
n.m. |
|
(10,015) |
|
(8,974) |
|
n.m. |
|
n.m. |
Total revenues |
960,122 |
|
903,059 |
|
|
|
( |
|
496,965 |
|
474,747 |
|
|
|
( |
___________________________________________ |
|
(1) |
Revenues from Pelletteria Tizeta, a manufacturing company of the Group, which were allocated to the Zegna segment in H1 2023, are now presented within the Tom Ford Fashion segment in H1 2024. As a result, the related revenues in H1 2023 have been reclassified from the Zegna segment to the Tom Ford Fashion segment to conform to the current period presentation. |
(2) |
Throughout this section “n.m.” means not meaningful. |
REVENUES BY BRAND AND PRODUCT LINE (Unaudited)
|
For the six months ended June 30, |
H1 2024 vs H1 2023 |
|
For the three months ended June 30, |
Q2 2024 vs Q2 2023 |
||||||||||
(€ thousands, except percentages) |
2024 |
|
2023 |
|
Revenues Growth |
|
Organic Growth |
|
2024 |
|
2023 |
|
Revenues Growth |
|
Organic Growth |
ZEGNA brand |
566,067 |
|
541,319 |
|
|
|
|
|
283,197 |
|
269,430 |
|
|
|
|
Thom Browne |
166,721 |
|
206,951 |
|
( |
|
( |
|
87,514 |
|
94,399 |
|
( |
|
( |
TOM FORD FASHION |
148,493 |
|
64,015 |
|
|
|
|
|
83,473 |
|
64,015 |
|
|
|
|
Textile |
71,836 |
|
73,072 |
|
( |
|
( |
|
38,593 |
|
39,254 |
|
( |
|
( |
Other (1) |
7,005 |
|
17,702 |
|
( |
|
( |
|
4,188 |
|
7,649 |
|
( |
|
( |
Total revenues |
960,122 |
|
903,059 |
|
|
|
( |
|
496,965 |
|
474,747 |
|
|
|
( |
____________________________________________ |
|
(1) |
Other mainly includes revenues from agreements with third party brands. |
Zegna segment
In H1 2024, revenues for the Zegna segment, which includes the ZEGNA brand, textile and other, amounted to
In H1 2024, revenues for the ZEGNA brand were
In H1 2024, revenues for Textile were
Thom Browne segment
In H1 2024, revenues for the Thom Browne segment amounted to
Thom Browne brand results are substantially aligned to the segment, with H1 2024 revenues at
_____________________________________ |
3 Excludes foreign exchange impact and revenues in |
4 The licensing agreement for the production and worldwide distribution of luxury men’s ready-to-wear and made-to-measure clothing, footwear, and accessories under the TOM FORD brand expired with the deliveries of the Fall/Winter 2022 collection, and a supply agreement to act as the exclusive supplier for certain TOM FORD menswear products commenced starting with the Spring/Summer 2023 collection and ended with the acquisition of TFI. |
5 Excludes foreign exchange impact and revenues in |
6 The difference between Thom Browne segment and Thom Browne brand refers to Thom Browne stores in MEA managed by Zegna Gulf Trading LLC on behalf of Thom Browne and allocated to Other in the revenues by brand and product line. |
Tom Ford Fashion segment
Since the consolidation of Tom Ford International LLC and its subsidiaries occurred on April 29, 2023, this section comments only the organic performance, which compares the revenues of the two months in which Tom Ford International LLC was consolidated in 2023 and 2024.
In H1 2024, revenues for the Tom Ford Fashion segment amounted to
Eliminations include revenues from products that the Textile and Other lines sell to the Group’s brands.
REVENUES BY DISTRIBUTION CHANNEL (Unaudited)
|
For the six months ended June 30, |
H1 2024 vs H1 2023 |
|
For the three months ended June 30, |
Q2 2024 vs Q2 2023 |
||||||||||
(€ thousands, except percentages) |
2024 |
|
2023 |
|
Revenues Growth |
|
Organic Growth |
|
2024 |
|
2023 |
|
Revenues Growth |
|
Organic Growth |
Direct to Consumer (DTC) |
|
|
|||||||||||||
ZEGNA brand |
486,561 |
|
465,710 |
|
|
|
|
|
246,946 |
|
236,114 |
|
|
|
|
Thom Browne |
89,976 |
|
82,924 |
|
|
|
( |
|
45,257 |
|
40,075 |
|
|
|
( |
TOM FORD FASHION |
93,062 |
|
34,751 |
|
|
|
|
|
49,361 |
|
34,751 |
|
|
|
|
Total Direct to Consumer (DTC) |
669,599 |
|
583,385 |
|
|
|
|
|
341,564 |
|
310,940 |
|
|
|
|
As a percentage of branded products (1) |
76 % |
|
72 % |
|
|
|
|
|
75 % |
|
73 % |
|
|
|
|
Wholesale branded |
|
|
|||||||||||||
ZEGNA brand |
79,506 |
|
75,609 |
|
|
|
|
|
36,251 |
|
33,316 |
|
|
|
|
Thom Browne |
76,745 |
|
124,027 |
|
( |
|
( |
|
42,257 |
|
54,324 |
|
( |
|
( |
TOM FORD FASHION |
55,431 |
|
29,264 |
|
|
|
|
|
34,112 |
|
29,264 |
|
|
|
|
Total Wholesale branded |
211,682 |
|
228,900 |
|
( |
|
( |
|
112,620 |
|
116,904 |
|
( |
|
( |
As a percentage of branded products |
24 % |
|
28 % |
|
|
|
|
|
25 % |
|
27 % |
|
|
|
|
Textile |
71,836 |
|
73,072 |
|
( |
|
( |
|
38,593 |
|
39,254 |
|
( |
|
( |
Other (2) |
7,005 |
|
17,702 |
|
( |
|
( |
|
4,188 |
|
7,649 |
|
( |
|
( |
Total revenues |
960,122 |
|
903,059 |
|
|
|
( |
|
496,965 |
|
474,747 |
|
|
|
( |
__________________________________________ |
|
(1) |
Branded products refer to the products sold under the three brands that the Group operates, through the DTC or wholesale branded distribution channels. |
(2) |
Other mainly includes revenues from agreements with third party brands. |
DTC Revenues Analysis
In H1 2024, DTC revenues were
Thom Browne DTC revenues were +
TOM FORD FASHION DTC revenues reached
Wholesale Branded Revenues Analysis
In H1 2024, wholesale branded revenues were
ZEGNA wholesale revenues were
Thom Browne wholesale revenues declined to
TOM FORD FASHION wholesale revenues were
REVENUES BY GEOGRAPHIC AREA (Unaudited)
|
For the six months ended June 30, |
|
H1 2024 vs H1 2023 |
|
For the three months ended June 30, |
|
Q2 2024 vs Q2 2023 |
||||||||
(€ thousands, except percentages) |
2024 |
|
2023 |
|
Revenues Growth |
|
Organic Growth |
|
2024 |
|
2023 |
|
Revenues Growth |
|
Organic Growth |
EMEA (1) |
336,591 |
|
322,680 |
|
|
|
( |
|
180,029 |
|
172,572 |
|
|
|
|
|
246,046 |
|
190,112 |
|
|
|
|
|
131,869 |
|
117,705 |
|
|
|
|
|
266,324 |
|
306,835 |
|
( |
|
( |
|
126,925 |
|
142,309 |
|
( |
|
( |
Rest of APAC (3) |
109,990 |
|
82,190 |
|
|
|
|
|
57,556 |
|
41,463 |
|
|
|
|
Other (4) |
1,171 |
|
1,242 |
|
( |
|
( |
|
586 |
|
698 |
|
( |
|
( |
Total revenues |
960,122 |
|
903,059 |
|
|
|
( |
|
496,965 |
|
474,747 |
|
|
|
( |
__________________________________________ |
|
(1) |
EMEA includes |
(2) |
|
(3) |
Rest of APAC includes |
(4) |
Other revenues mainly include royalties. |
In H1 2024, EMEA recorded revenues of
Revenues in the
The GCR recorded revenues of
Group Monobrand(1) Store Network at June 30, 2024
|
At June 30, 2024 |
|
At December 31, 2023 |
|
At June 30, 2023 |
||||||||||||||||||
Stores |
ZEGNA |
|
Thom Browne |
|
TOM FORD FASHION |
|
Group |
|
ZEGNA |
|
Thom Browne |
|
TOM FORD FASHION |
|
Group |
|
ZEGNA |
|
Thom Browne |
|
TOM FORD FASHION |
|
Group |
EMEA (2) |
75 |
|
9 |
|
7 |
|
91 |
|
71 |
|
9 |
|
4 |
|
84 |
|
69 |
|
10 |
|
4 |
|
83 |
|
64 |
|
20 |
|
12 |
|
96 |
|
59 |
|
7 |
|
12 |
|
78 |
|
55 |
|
7 |
|
11 |
|
73 |
|
82 |
|
35 |
|
11 |
|
128 |
|
79 |
|
33 |
|
10 |
|
122 |
|
79 |
|
32 |
|
11 |
|
122 |
Rest of APAC |
58 |
|
38 |
|
26 |
|
122 |
|
44 |
|
37 |
|
25 |
|
106 |
|
43 |
|
17 |
|
25 |
|
85 |
Total Direct to Consumer (DTC) |
279 |
|
102 |
|
56 |
|
437 |
|
253 |
|
86 |
|
51 |
|
390 |
|
246 |
|
66 |
|
51 |
|
363 |
EMEA (2) |
46 |
|
7 |
|
16 |
|
69 |
|
55 |
|
7 |
|
14 |
|
76 |
|
59 |
|
7 |
|
12 |
|
78 |
|
67 |
|
3 |
|
50 |
|
120 |
|
63 |
|
3 |
|
50 |
|
116 |
|
63 |
|
3 |
|
51 |
|
117 |
|
13 |
|
10 |
|
— |
|
23 |
|
13 |
|
10 |
|
— |
|
23 |
|
13 |
|
11 |
|
— |
|
24 |
Rest of APAC |
4 |
|
4 |
|
5 |
|
13 |
|
20 |
|
5 |
|
6 |
|
31 |
|
22 |
|
22 |
|
7 |
|
51 |
Total Wholesale |
130 |
|
24 |
|
71 |
|
225 |
|
151 |
|
25 |
|
70 |
|
246 |
|
157 |
|
43 |
|
70 |
|
270 |
Total |
409 |
|
126 |
|
127 |
|
662 |
|
404 |
|
111 |
|
121 |
|
636 |
|
403 |
|
109 |
|
121 |
|
633 |
_________________________________________ |
|
(1) |
Monobrand store count includes our DOSs (which are divided into boutiques and outlets) and our Wholesale monobrand stores (including also monobrand franchisees). |
(2) |
Does not include any stores in |
SIGNIFICANT EVENTS OCCURRED IN THE SECOND QUARTER OF 2024
VILLA ZEGNA - Oasi Linen in
On May 23, 2024, ZEGNA brought the new “VILLA ZEGNA” experience to
ZEGNA Summer 2025 Fashion Show
On June 17, 2024, ZEGNA presented its Summer 2025 Fashion Show in an industrial Milanese space that was transformed into a field of linen to evoke the golden fields of Normandy ready for harvest. Envisioned by Artistic Director, Alessandro Sartori, the menswear collection celebrated the unique characteristics of the brand’s fabric of choice for summer: Oasi Lino. The collection represents a development central to the brand’s Our Road to Traceability, as the Oasi Lino fibers are fully traceable.
Thom Browne Couture Show
On June 24, 2024, with references to the upcoming Olympic Games, Thom Browne held its second women’s and men’s 2024 couture collection in
SIGNIFICANT EVENTS OCCURRED AFTER JUNE 30, 2024
TOM FORD FASHION - Departure of Creative Director
On July 22, 2024, it was announced that Peter Hawkings is stepping down as Creative Director of the brand. Peter Hawkings has been at TOM FORD since its inception and at the helm of creative since April 2023.
The Spring-Summer 2025 collection will be presented in the
UPCOMING EVENTS
Next releases
- September 18, 2024: H1 2024 Financial Results
- October 22, 2024: Q3 2024 Unaudited Revenues
Forward Looking Statements
This communication contains forward-looking statements that are based on beliefs and assumptions and on information currently available to the Company. In particular, statements regarding future financial performance and the Group’s expectations as to the achievement of certain targeted metrics at any future date or for any future period are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek”, “aspire,” “goal,” “outlook,” “guidance,” “forecast,” “prospect” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including strategies or plans, are also forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the recognition, integrity and reputation of our brands; our ability to anticipate trends and to identify and respond to new and changing consumer preference; the COVID-19 pandemic or similar public health crises; international business, regulatory, social and political risks; the conflict in
Most of these factors are outside the Company’s control and are difficult to predict. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by the Company and its directors, officers or employees or any other person that the Company will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this communication represent the views of the Company as of the date of this communication. Subsequent events and developments may cause that view to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company disclaims any obligation to update or revise publicly forward-looking statements. You should, therefore, not rely on these forward-looking statements as representing the views of the Company as of any date subsequent to the date of this communication.
Non-IFRS financial measures
The Group’s management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: revenues on a constant currency basis (constant currency) and revenues on an organic growth basis (organic or organic growth). The Group’s management believes that these non-IFRS financial measures provide useful and relevant information regarding the Group’s financial performance and financial condition, and improve the ability of management and investors to assess and compare the financial performance and financial position of the Group with those of other companies. They also provide comparable measures that facilitate management’s ability to identify operational trends, as well as make decisions regarding future spending, resource allocations and other strategic and operational decisions. While similar measures are widely used in the industry in which the Group operates, the financial measures that the Group uses may not be comparable to other similarly named measures used by other companies nor are they intended to be substitutes for measures of financial performance or financial position as prepared in accordance with IFRS.
Revenues on a constant currency basis (constant currency)
In addition to presenting our revenues on a current currency basis, we also present certain revenue information on a constant currency basis (constant currency), which excludes the effects of foreign currency translation from our subsidiaries with functional currencies different from the Euro.
We calculate constant currency revenues by applying the current period average foreign currency exchange rates to translate prior period revenues of foreign subsidiaries expressed in local functional currencies different than the Euro.
We use revenues on a constant currency basis to analyze how our underlying revenues have changed between periods independent of the effects of foreign currency translation.
Revenues on a constant currency basis are not a substitute for revenues on a current currency basis or any IFRS-related measures, however we believe that revenues excluding the impact of foreign currency translation provide additional useful information to management and to investors in analyzing and evaluating our revenues and operating performance.
Revenues on an organic growth basis (organic growth or organic)
In addition to presenting our revenues on a current currency basis, we also present certain revenue information on an organic growth basis (organic growth or organic). Organic growth is calculated as the change in revenues from period to period, excluding the effects of (a) foreign exchange, (b) acquisitions and disposals and (c) changes in license agreements where the Group operates as a licensee.
In calculating organic growth, the following adjustments are made to revenues:
(a) Foreign exchange – Current period average foreign currency exchange rates are used to translate prior period revenues of foreign subsidiaries expressed in local functional currencies different than the Euro.
(b) Acquisitions and disposals – Revenues generated by businesses and operations acquired in the current year are excluded. Revenues generated by businesses and operations acquired in the prior year are excluded from the current year for the same period that corresponds to the pre-acquisition period in the prior year. Additionally, where a business or operation was a customer prior to an acquisition, the related pre-acquisition revenues are excluded from the current and prior periods. Revenues generated by businesses and operations disposed of in the current year or prior year are excluded from both periods as applicable.
(c) Changes in license agreements where the Group operates as a licensee – Revenues generated from license agreements where the Group operates as a licensee that are new or terminated in the current year or prior year are excluded from both periods (except if the effects are already included in acquisitions and disposals). Additionally, revenues generated from license agreements where the Group operates as a licensee that experienced a structural change in the scope or perimeter in the current year or prior year are excluded from both periods, including changes to product categories, distribution channels or geographies of the underlying license agreements.
We believe the presentation of organic growth is useful to better understand and analyze the underlying change in the Group’s revenues from period to period on a consistent perimeter and constant currency basis.
Revenues on an organic growth basis are not a substitute for revenues on a current currency basis or any IFRS-related measures, however we believe that revenues excluding the effects of (a) foreign exchange, (b) acquisitions and disposals and (c) changes in license agreements where the Group operates as a licensee provide additional useful information to management and to investors in analyzing and evaluating our revenues and operating performance.
The tables below show a reconciliation of reported revenue growth to constant currency, excluding the effects of foreign exchange, and to organic growth, which excludes also acquisitions and disposals and changes in license agreements where the Group operates as a licensee, by segment, by brand and product line, by distribution channel and by geography for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 (H1 2024 vs H1 2023) and for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 (Q2 2024 vs Q2 2023).
Segment
|
H1 2024 vs H1 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
Zegna |
|
|
( |
|
|
|
|
|
|
|
|
Thom Browne |
( |
|
( |
|
( |
|
|
|
—% |
|
( |
Tom Ford Fashion |
|
|
( |
|
|
|
|
|
—% |
|
|
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
|
Q2 2024 vs Q2 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
Zegna |
|
|
( |
|
|
|
|
|
|
|
|
Thom Browne |
( |
|
( |
|
( |
|
|
|
—% |
|
( |
Tom Ford Fashion |
|
|
( |
|
|
|
|
|
—% |
|
|
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
Brand and product line
|
H1 2024 vs H1 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
ZEGNA brand |
|
|
( |
|
|
|
|
|
—% |
|
|
Thom Browne |
( |
|
( |
|
( |
|
|
|
—% |
|
( |
TOM FORD FASHION |
|
|
( |
|
|
|
|
|
—% |
|
|
Textile |
( |
|
( |
|
( |
|
( |
|
—% |
|
( |
Other |
( |
|
( |
|
( |
|
( |
|
( |
|
( |
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
|
Q2 2024 vs Q2 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
ZEGNA brand |
|
|
( |
|
|
|
|
|
—% |
|
|
Thom Browne |
( |
|
( |
|
( |
|
|
|
—% |
|
( |
TOM FORD FASHION |
|
|
( |
|
|
|
|
|
—% |
|
|
Textile |
( |
|
( |
|
( |
|
—% |
|
—% |
|
( |
Other |
( |
|
—% |
|
( |
|
—% |
|
( |
|
( |
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
Distribution channel
|
H1 2024 vs H1 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
Direct to Consumer (DTC) |
|
|
|
|
|
|
|
|
|
|
|
ZEGNA brand |
|
|
( |
|
|
|
|
|
—% |
|
|
Thom Browne |
|
|
( |
|
|
|
|
|
—% |
|
( |
TOM FORD FASHION |
|
|
( |
|
|
|
|
|
—% |
|
|
Total Direct to Consumer (DTC) |
|
|
( |
|
|
|
|
|
—% |
|
|
Wholesale branded |
|
|
|
|
|
|
|
|
|
|
|
ZEGNA brand |
|
|
( |
|
|
|
( |
|
—% |
|
|
Thom Browne |
( |
|
—% |
|
( |
|
( |
|
—% |
|
( |
TOM FORD FASHION |
|
|
( |
|
|
|
|
|
—% |
|
|
Total Wholesale branded |
( |
|
( |
|
( |
|
|
|
—% |
|
( |
Textile |
( |
|
( |
|
( |
|
( |
|
—% |
|
( |
Other |
( |
|
( |
|
( |
|
( |
|
( |
|
( |
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
|
Q2 2024 vs Q2 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
Direct to Consumer (DTC) |
|
|
|
|
|
|
|
|
|
|
|
ZEGNA brand |
|
|
( |
|
|
|
|
|
—% |
|
|
Thom Browne |
|
|
( |
|
|
|
|
|
—% |
|
( |
TOM FORD FASHION |
|
|
( |
|
|
|
|
|
—% |
|
|
Total Direct to Consumer (DTC) |
|
|
( |
|
|
|
|
|
—% |
|
|
Wholesale branded |
|
|
|
|
|
|
|
|
|
|
|
ZEGNA brand |
|
|
( |
|
|
|
( |
|
—% |
|
|
Thom Browne |
( |
|
—% |
|
( |
|
|
|
—% |
|
( |
TOM FORD FASHION |
|
|
( |
|
|
|
|
|
—% |
|
|
Total Wholesale branded |
( |
|
( |
|
( |
|
|
|
—% |
|
( |
Textile |
( |
|
( |
|
( |
|
—% |
|
—% |
|
( |
Other |
( |
|
—% |
|
( |
|
—% |
|
( |
|
( |
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
Geographic area
|
H1 2024 vs H1 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
EMEA (1) |
|
|
( |
|
|
|
|
|
( |
|
( |
|
|
|
|
|
|
|
|
|
( |
|
|
|
( |
|
( |
|
( |
|
|
|
—% |
|
( |
Rest of APAC (3) |
|
|
( |
|
|
|
|
|
( |
|
|
Other (4) |
( |
|
—% |
|
( |
|
|
|
—% |
|
( |
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
_________________________________________ |
|
(1) |
EMEA includes |
(2) |
|
(3) |
APAC includes |
(4) |
Other revenues mainly include royalties. |
|
Q2 2024 vs Q2 2023 |
||||||||||
|
Revenues Growth |
|
less Foreign exchange |
|
Constant Currency |
|
less Acquisitions and disposals |
|
less Changes in license agreements where the Group operates as a licensee |
|
Organic Growth |
EMEA (1) |
|
|
|
|
|
|
|
|
( |
|
|
|
|
|
( |
|
|
|
|
|
( |
|
|
|
( |
|
( |
|
( |
|
|
|
( |
|
( |
Rest of APAC (3) |
|
|
( |
|
|
|
|
|
( |
|
|
Other (4) |
( |
|
( |
|
( |
|
|
|
—% |
|
( |
Total |
|
|
( |
|
|
|
|
|
( |
|
( |
_________________________________________ |
|
(1) |
EMEA includes |
(2) |
|
(3) |
APAC includes |
(4) |
Other revenues mainly include royalties. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725369806/en/
Paola Durante, Chief of External Relations
Alice Poggioli, Investor Relations Director
Clementina Tito, Head of Corporate Communication
ir@zegna.com / corporatepress@zegna.com
Source: Zegna Group
FAQ
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