Zegna closes first quarter with revenues of 459 million

A good start to the year, considering the general slowdown in the high-end segment, for the Ermenegildo Zegna Group, which closed the first quarter with revenues of Euro 458.8 million, down 1% year-on-year and organically (i.e. at constant exchange rates), with the Zegna and Tom Ford Fashion brands up 4%.

The Direct-to-Consumer channel (direct shops) continued to be a key driver of growth, recording a 5% increase, with Zegna at +5%. Thom Browne at +4% and Tom Ford Fashion at +10%. In contrast, the performance of the wholesale channel, down 20%, reflected Thom Browne's strategic decision to rationalise the channel and, for all brands, convert some shops from wholesale to retail.

The Americas recorded a revenue growth of 9% in the quarter: 27% of revenues are attributable to the region, and the growth is particularly linked to the double-digit increase in sales of the Zegna brand.

Ermenegildo "Gildo" Zegna, Chairman and CEO of the Ermenegildo Zegna Group, showed cautious optimism: "Despite the challenges still present in our industry, all three of our brands performed positively in the strategic Direct-to-Consumer channel. Thom Browne's results, while supported by a positive trend in retail, continue to suffer from the strategic decision to reduce exposure to the wholesale channel. Tom Ford Fashion showed positive momentum, especially in the US and Europe, which was further strengthened by the remarkable success of the March show. We are encouraged by these positive initial results," added Gildo Zegna, "but also fully aware of the recent geopolitical and economic uncertainties. While we have not observed significant changes in consumer behaviour towards our brands, we remain vigilant, agile and focused on our strategic priorities, knowing that what really matters is the strength of our brands and our unconditional commitment to remain close to our customers".