The wholesale channel and China penalized Zegna group, while the Americas and direct retail rewarded it. The end result is that the group’s first quarter is basically in line with 2024: 458.8 million euro, down 1% both at current exchange rates and on an organic basis. Considering the difficulties being faced by industry giants of the luxury industry, Zegna’s resilience isn’t an achievement to be underestimated.
Zegna’s resilience
“All three of our brands recorded positive performance in the Direct-to-Consumer strategic channel”, comments Gildo Zegna, CEO of the group. In other words: +4% for both the Zegna brand and Tom Ford Fashion. “Thom Browne’s results, while supported by a positive trend in retail, continued to be affected by our strategic decision to reduce exposure to the wholesale channel”, Zegna says, to explain the brand’s -19%. The CEO says he hasn’t seen “significant changes in customer behavior for all of our brands”. For Zegna, “what really matters is the strength of our brands”, which is why the group will remain “vigilant, flexible and focused on strategic priorities”.
By brand
Results, brand by brand: Zegna generated a revenue of 293 million euro (up 3% organically); Thom Browne grossed 64 million (-19%) and Tom Ford Fashion 67 million (+3%). Overall, sales in the retail channel grew by 5%, while wholesale ones fell by 20%. Geographically, Zegna confirmed the weakness of the Chinese market, an area where revenues fell 12% to 123.3 million. Conversely, the performance of the Americas was good, with revenue growth of 9% to 125 million euro.
Images from zegna.com
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