The Group Shares Positive Prospects for Continued Growth Despite Current Market Challenges
Ermenegildo Zegna Group has expressed confidence in its future growth prospects despite current market uncertainties.
The company revealed its full-year 2024 results along with its financial projections for 2027, forecasting revenues to be in the range of 2.2 billion to 2.4 billion euros. This is a significant increase from the 1.94 billion euros reported in 2024. Additionally, the group anticipates earnings before interest and taxes to reach between 250 million to 300 million euros by 2027.
Gildo Zegna, Chairman and CEO of Ermenegildo Zegna Group, emphasized the company’s strategic initiatives, stating, “In 2024 we took decisive actions, strengthening our organization and prioritizing investments that are strategic in our brands.”
The company’s net profit for 2024 narrowed to 90.9 million euros from 135.7 million euros in 2023, affected by a higher tax rate of 30 percent, up from 20 percent the previous year. EBIT for 2024 also decreased to 184 million euros from 220.2 million euros in 2023.
Sales performance varied across its brands. The Zegna brand itself saw a 4.9 percent increase in sales, reaching 1.16 billion euros. However, revenues for Thom Browne decreased by 16.8 percent to 314.7 million euros. Conversely, Tom Ford Fashion experienced a substantial rise, with sales increasing by 33.5 percent to 314.5 million euros.
Regionally, the EMEA area reported a 3.3 percent growth in sales, totaling 680.2 million euros. The Americas region saw a more robust increase of 15.4 percent, bringing revenues up to 524.8 million euros. In contrast, the Greater China region faced challenges, with sales declining by 14.5 percent to 509.4 million euros amid a difficult consumer environment, particularly in mainland China. Meanwhile, sales in the rest of the Asia-Pacific region grew significantly by 19.4 percent to 229.9 million euros.
Looking forward, the Zegna Group remains prudent but optimistic about its strategic direction, stating the need for a cautious yet committed approach to its projects: “We will do so with discipline, agility, and a sharp focus on executing our vision while creating value for our stakeholders.”