The Zegna Brand’s U.S. Presence, DTC Channel, and Brand Strength Propelled Ermenegildo Zegna Group
The Zegna brand played a fundamental role for the Ermenegildo Zegna Group through the past year, counterbalanced by the streamlining of the Thom Browne wholesale channel.
In the 12 months concluding on Dec. 31, revenues increased by 2.2 percent to 1.94 billion euros compared to 1.9 billion euros for the same duration last year. The growth was largely provided by Zegna’s direct-to-consumer channel, recording an increase of 11 percent with strong growth in the U.S.
The group’s organic revenues decreased by 1.9 percent, while they rose by 3.4 percent at constant currency. Fourth quarter revenues reached 589.2 million euros, marking a 3.3 percent increment.
Beyond the statistics, I’m optimistic regarding our strategic schemes on the pipeline,” said Gildo Zegna, Group’s Chairman and CEO. He continued, “The recent Zegna fashion show was acclaimed being among the best for the brand with the presentation of our ultra-premium Vellus Aureum, made from the finest wool, thanks to our adeptness and unique filiera [pipeline]. This has repositioned Zegna at the forefront of high-end luxury menswear.”
He shed light on enhancing Thom Browne’s global merchandizing and retail groups with vital inclusions from the U.S. and Europe. He expressed anticipation to witness the brand’s show in February ending the New York Fashion Week.
Furthermore, he commented on Haider Ackermann, the new creative director of Tom Ford Fashion, succeeding Peter Hawkings. The designer’s debut show for the brand will be held at Paris Fashion Week in March.
“We project 2025 to unfold differently across various regions. While we have observed solid performances in the Americas and EMEA during the initial weeks of January, we also predict ongoing volatility in consumer demand in China,” Zegna noted. “We are prepared to ride these waves with our skilled team’s directions and a keen focus on priorities: building on brand equity, investing in key strategic schemes, and doubling down on our existing strengths.”
On brand basis, Zegna saw a rise of 4.9 percent in sales to 1.16 billion euros, while Thom Browne revenues fell 16.8 percent to 314.7 million euros. Tom Ford Fashion sales surged 33.5 percent to 314.5 million euros.
In 2024, the EMEA region saw a 3.3 percent climb in sales to 680.2 million euros, which made up 35 percent of the total. Revenues in the Americas came to 524.8 million euros, an increase of 15.4 percent, representing 27 percent of the total.
Sales in the Greater China region declined 14.5 percent to 509.4 million euros, accounting for 26 percent of the total, mirroring the challenging consumer environment, particularly in Mainland China. In the rest of the Asia Pacific region, sales saw an uptick of 19.4 percent to 229.9 million euros, comprising 12 percent of the total.