MILAN - Ermenegildo Zegna N.V. (NYSE:ZGN) (the 'Company' and, together with its consolidated subsidiaries, the 'Ermenegildo Zegna Group' or the 'Group') today announced unaudited revenues of EUR463.2 million for the first quarter of 2024, +8.1% year-on-year (YoY) from EUR428.3 million in the first quarter of 2023 (+10.7% at constant currency and -5.3% on an organic growth basis4.)
Ermenegildo 'Gildo' Zegna, Chairman and CEO of the Ermenegildo Zegna Group, said: 'Closing the first quarter of 2024 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. I am confident in the decisions we are making to accelerate our direct control of the business, in particular at Thom Browne and TOM FORD FASHION, and we have also reinforced our talent and leadership across all levels, knowing how critical our people are to delivering results. Finally, we are continuing our focus on clienteling and customer experience, both of which will further strengthen the long-term value of all our brands.
A highlight of our efforts to provide unforgettable experiences was the launch in Milan of Oasi Zegna, an immersive exhibition that we brought to life at the Group's headquarters during Salone del Mobile. Over 26,000 people visited the installation throughout the week - an impressive indicator of the ZEGNA brand's strength.
Looking at the rest of the year, we have a clear and defined path in front of us. I am confident that we are taking the right actions to make our brands even stronger and to deliver on our medium-term ambitions.'
Zegna segment
In Q1 2024, revenues for the Zegna segment amounted to EUR324.9 million, compared to EUR319.3 million in Q1 2023 (+1.7% YoY and +4.3% on an organic growth basis). The ZEGNA brand revenues outpaced the growth of the overall segment.
Thom Browne segment
In Q1 2024, revenues for the Thom Browne segment amounted to EUR79.1 million, compared to EUR113.3 million in Q1 2023 (-30.2% YoY and -35.0% on an organic growth basis). This was the result of three main factors: i) different timing in deliveries across quarters; ii) the decision to accelerate the streamlining of the wholesale business and on doors selection, concentrating the largest part of these initiatives in the first quarter of the year and iii) a lower-than-expected DTC trend in the Greater China Region, where management has taken important actions intended to improve performance.
Tom Ford Fashion segment
In Q1 2024, revenues for the Tom Ford Fashion segment amounted to EUR65.0 million. 2024 is an important year for the TOM FORD FASHION team, who is working to set up the foundations to support the future development of the business. This includes a number of important projects, such as new store openings in Rome and Beijing, which are expected to occur in Q3 2024.
ZEGNA brand
In Q1 2024, revenues for the ZEGNA brand were EUR282.9 million +4.0% YoY compared to EUR271.9 million in Q1 2023 (+6.8% on an organic growth basis). This increase was driven by healthy growth in key categories and, in particular, footwear and leisurewear. Several key regions - mainly EMEA, the Americas and Japan - saw solid double-digit growth. The Greater China Region recorded single digit negative growth in the quarter.
Thom Browne
In Q1 2024, revenues for Thom Browne were EUR79.2 million, -29.6% YoY compared to EUR112.6 million in Q1 2023 (-34.4% on an organic growth basis). The brand recorded strong results in Japan while EMEA and the Greater China Region underperformed. EMEA, in particular, was impacted by the decision to reduce the wholesale business to support the brand's DTC development.
TOM FORD FASHION
In Q1 2024, revenues for the TOM FORD FASHION business were EUR65.0 million, reflecting good performance, mainly in the United States.
Textile
In Q1 2024, revenues for textile were EUR33.2 million, -1.7% YoY compared to EUR33.8 million in Q1 2023 (-0.8% on an organic growth basis), as a result of lower textile demand from the luxury goods sector.
Other Revenues
In Q1 2024, other revenues, which mainly includes revenues for third-party brands, were EUR2.8 million, -72.0% YoY compared to EUR10.1 million in Q1 2023 (-43.6% on an organic growth basis), reflecting the end of the Tom Ford International distribution license for Tom Ford Products5, following the acquisition of Tom Ford International LLC on April 28, 2023.
About Ermenegildo Zegna Group
Founded in 1910 in Trivero, Italy, the Ermenegildo Zegna Group (NYSE:ZGN) is a global luxury company with a leading position in the high-end menswear business. Through its three complementary brands, the Group reaches a wide range of communities and market segments across the high-end fashion industry, from ZEGNA's timeless luxury to the modern tailoring of Thom Browne, to luxury glamour with TOM FORD FASHION. The Ermenegildo Zegna Group is internationally recognized for its unique Filiera, owned and controlled by the Group, which is made up of the finest Italian textile producers fully integrated with unique luxury manufacturing capabilities, to ensure superior excellence, quality and innovation capacity. The Ermenegildo Zegna Group has more than 7,000 employees and recorded revenues of EUR1.9 billion in 2023.
Forward Looking Statements
This communication contains forward-looking statements that are based on beliefs and assumptions and on information currently available to the Company. In particular, statements regarding future financial performance and the Group's expectations as to the achievement of certain targeted metrics at any future date or for any future period are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: 'may,' 'will,' 'could,' 'would,' 'should,' 'expect,' 'intend,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'project,' 'potential,' 'continue,' 'ongoing,' 'target,' 'seek', 'aspire,' 'goal,' 'outlook,' 'guidance,' 'forecast,' 'prospect' or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including strategies or plans, are also forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the recognition, integrity and reputation of our brands; our ability to anticipate trends and to identify and respond to new and changing consumer preference; the COVID-19 pandemic or similar public health crises; international business, regulatory, social and political risks; the conflict in Ukraine and sanctions imposed onto Russia; the occurrence of acts of terrorism or similar events, conflicts, civil unrest or situations of political instability; developments in Greater China and other growth and emerging markets; our ability to implement our strategy; recent and potential future acquisitions; disruption to our manufacturing and logistics facilities; risks related to the sale of our products through our direct-to-consumer channel, as well as through points of sale operated by third parties; our dependence on our local partners to sell our products in certain markets; fluctuations in the price or quality of, or disruptions in the availability of, raw materials; our ability to negotiate, maintain or renew our license or co-branding agreements with high end third party brands; tourist traffic and demand; our dependence on certain key senior personnel as well as skilled personnel; our ability to protect our intellectual property rights; disruption in our information technology, including as a result of cybercrime; the theft or unauthorized use of personal information of our customers, employees or other parties; fluctuations in currency exchange rates or interest rates; the level of competition in the industry in which we operate; global economic conditions and macro events, including inflation; failures to comply with applicable laws and regulations; climate change and other environmental impacts and our ability to meet our customers' and other stakeholders' expectations on environment, social and governance matters; the enactment of tax reforms or other changes in tax laws and regulations and other risks and uncertainties, including those described in our filings with the SEC.
Most of these factors are outside the Company's control and are difficult to predict. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by the Company and its directors, officers or employees or any other person that the Company will achieve its objectives and plans in any specified time frame, or at all. The forward-looking statements in this communication represent the views of the Company as of the date of this communication. Subsequent events and developments may cause that view to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company disclaims any obligation to update or revise publicly forward-looking statements. You should, therefore, not rely on these forward-looking statements as representing the views of the Company as of any date subsequent to the date of this communication.
Contacts
Clementina Tito
Head of Corporate Communication
Email: ir@zegna.com
ERMENEGILDO ZEGNA N.V. 
