The Zegna segment, representing the core brand, saw revenues climb slightly to €324.9 million in Q1 FY24 from €319.3 million in the previous year, marking a 1.7 per cent YoY growth and a 4.3 per cent rise on an organic basis, the company said in a press release.
Ermenegildo Zegna Group reported an 8.1 per cent YoY increase in revenue to €463.2 million (~$495.1 million) in Q1 FY24, with organic growth down by 5.3 per cent.
The Zegna segment experienced a modest increase, while the Thom Browne segment saw a significant 30.2 per cent decline in revenues.
DTC revenues increased 20.4 per cent to €328 million.
Contrastingly, the Thom Browne segment faced a significant downturn, with revenues plummeting by 30.2 per cent YoY to €79.1 million from €113.3 million in Q1 FY23. The decline was even steeper on an organic basis at 35 per cent.
Revenue from the Tom Ford Fashion segment stood at €65 million, while the textile division reported a slight decline of 1.7 per cent YoY to €33.2 million, down from €33.8 million in the corresponding quarter of 2023. This decline was attributed to reduced demand from the luxury goods sector.
Other revenues, which mainly include earnings from third-party brands, significantly decreased by 72.0 per cent YoY to just €2.8 million from €10.1 million, with a 43.6 per cent drop on an organic growth basis.
Direct-to-consumer (DTC) revenues, however, showed robust growth, increasing by 20.4 per cent YoY to €328.0 million, up from €272.4 million in Q1 FY23, with a modest 3.2 per cent growth organically. Meanwhile, wholesale branded revenues experienced a decline, falling 11.5 per cent YoY to €99.1 million from €112.0 million, with a substantial 25.9 per cent decrease on an organic basis.
“Closing the first quarter of FY24 with double-digit revenue growth on a constant currency basis is reassuring given the challenges that the sector is facing. Our growth in the Americas—also in double digits—and the ongoing successful delivery on our Zegna One Brand strategy give me additional assurance that we are moving in the right direction,” said Ermenegildo ‘Gildo’ Zegna, chairman and CEO of the Ermenegildo Zegna Group.
Fibre2Fashion News Desk (DP)