Revenues at Ermenegildo Zegna Group, the owner of Zegna and Thom Browne and licensee of Tom Ford Fashion, grew by 2.2 per cent year-on-year to €1.95 billion in 2024, the company said on Thursday (up 3.4 per cent at constant currency and down 1.9 per cent on an organic basis).
By brand, Zegna’s full-year revenues grew 4.9 per cent at constant currency to €1.16 billion (up 5.5 per cent organic); Thom Browne’s slumped by 16.8 per cent to €314.7 million (down 20.5 per cent organic); and Tom Ford Fashion was up 33.5 per cent to €314.5 million (down 0.7 per cent organic).
The group’s performance comes amid a mixed bag of results for luxury in 2024, as post-pandemic splurging screeched to a halt. LVMH’s turnover slipped by 1 per cent to €84.7 billion, and Kering revenues were down 12 per cent to €17.2 billion. However, market performance was polarised: Prada Group’s net revenues grew 17 per cent to €5.4 billion, while Brunello Cucinelli’s rose 12.4 per cent to €1.28 billion.
While Zegna Group was in revenue growth, its adjusted EBIT — which measures the profitability of its core operations excluding interest and taxes — fell to €184 million for the full year, down from €220 million in 2023. The company said its profitability was impacted by Thom Browne’s underperformance and a decision to streamline the brand’s wholesale operations, as well as, to some extent, by the investment required to develop Tom Ford Fashion, for which it acquired the licence in 2023.
Total group profit decreased to €90.9 million, compared with €135.7 million in 2023. The company said this reflected a hike in its tax rate, which rose to 30 per cent in 2024 from 20 per cent the year prior, when it benefitted from a higher non-taxable income.
“Despite a challenging environment in 2024, the group achieved adjusted EBIT of €184 million,” said Ermenegildo ‘Gildo’ Zegna, group chairman and CEO, in a statement. “Zegna led this performance, driven by the brand’s distinctive competitive edge and management’s commitment to delivering results. We maintained a highly disciplined approach, focusing on key projects and investments that enhance brand desirability while ensuring strict cost control.”
He continued: “Thom Browne’s operating performance reflects our strategic decision to streamline the wholesale channel while reinforcing client-centricity through direct-to-consumer. Tom Ford Fashion has continued its journey towards realising its full potential with a clear understanding of key priorities. The recent, unanimously acclaimed fashion show — the first under Haider Ackermann — strongly aligns with this direction and confirms that our path forward is well defined.”
The group expects to reach revenues in the range of €2.2-€2.4 billion by 2027, with an adjusted EBIT of €250-€300 million.
“As we look further into 2025, we recognise the importance of maintaining a cautious approach while also remaining committed to delivering on our projects,” said Zegna. “Especially in today’s environment, protecting our brands’ identities remains our first priority. We will do so with discipline, agility and a sharp focus on executing our vision while creating value for our stakeholders.”
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