Brand-wise, Zegna led with €1,163.7 million in revenues (+4.9 per cent YoY and +5.5 per cent organic), followed by Thom Browne at €314.7 million (down 16.8 per cent YoY), and Tom ford fashion at €314.5 million (+33.5 per cent YoY).
Ermenegildo Zegna Group has reported revenues of €1.95 billion (~$2.11 billion) in FY24, up 2.2 per cent YoY, with a gross profit margin of 66.6 per cent driven by strong DTC sales.
Zegna led brand performance, while Thom Browne revenues declined.
Net profit stood at €90.9 million (~$98.2 million).
The Group aims for €2.2–€2.4 billion (~$2.38–$2.59 billion) revenue and €250–€300 million EBIT by 2027.
The group’s textile revenues declined by 8.5 per cent to €138.2 million, while other revenues dropped 48.4 per cent to €15.5 million.
SG&A expenses increased to €1,008.3 million (51.8 per cent of revenues), while marketing expenses reached €121.4 million. Corporate costs amounted to €20.0 million in FY24 compared to €30.4 million in FY23. The decrease is mainly due to lower costs for short-term and long-term remuneration.
The group posted an operating profit of €166.9 million. The net profit declined to €90.9 million (~$98.2 million) with 4.7 per cent margin. This drop was influenced by a higher effective tax rate of 30 per cent and increased foreign exchange losses of €6.1 million due to US dollar appreciation. The adjusted EBIT was €184.0 million, with an adjusted EBIT margin of 9.5 per cent, Ermenegildo Zegna said in a press release.
“In 2024, we took decisive actions, strengthening our organisation and prioritising investments that are strategic in our brands. Our Filiera—our R&D powerhouse—remains a driving force for our group, fuelling the innovation that sets Zegna, Thom Browne, and Tom Ford Fashion apart,” said Ermenegildo ‘Gildo’ Zegna, chairman and chief executive officer (CEO) of Zegna Group. “Zegna led this performance, driven by the brand’s distinctive competitive edge and management’s commitment to delivering results. Tom Ford Fashion has continued its journey toward 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.”
“We maintained a highly disciplined approach, focusing on key projects and investments that enhance brand desirability while ensuring strict cost control. Thom Browne’s operating performance reflects our strategic decision to streamline the wholesale channel while reinforcing client-centricity through DTC,” added Zegna.
Considering the current business environment, Ermenegildo Zegna has revised its medium-term targets. By 2027, it aims to achieve revenues between €2.2 billion (~$2.38 billion) and €2.4 billion (~$2.59 billion), with adjusted EBIT projected to range from €250 million to €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. Especially in today’s environment, protecting our brands’ identity remains our priority. We will do so with discipline, agility, and a sharp focus on executing our vision while creating value for our stakeholders,” said Zegna.
Fibre2Fashion News Desk (SG)