Italian luxury fashion house Ermenegildo Zegna has reported unaudited revenues of €458.82m ($521.55m) for the first quarter (Q1) of fiscal 2025 (FY 2025), a modest dip of 0.9% compared with €463.16m during the same period in 2024 (FY 2024).
The Zegna segment, encompassing the ZEGNA brand, Textile division, and other revenue streams, saw an increase to €333.29m in Q1 FY 2025 from €324.90m in the previous year, marking a 2.6% rise.
Go deeper with GlobalData
The Zegna brand experienced a revenue boost to €292.92m, up by 3.6% from €282.87m, largely attributed to robust growth in direct-to-consumer (DTC) sales.
However, revenues of the textile division fell by 10% to €29.92m in Q1 FY 2025 from €33.24m in the same period a year ago, reflecting a drop in orders from external brands within the group.
Thom Browne’s segment faced challenges with revenues decreasing to €64.38m from €79.07m in the previous year, a decline of 18.6%.
The Thom Browne brand mirrored this trend with revenues at €64.22m compared to €79.21m, down by 18.9% primarily due to deliberate reductions in wholesale channels, only partially mitigated by positive DTC performance.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOver the quarter, the Tom Ford Fashion segment presented an uptick in revenues reaching €67.49m, growing 3.8% from €65.02m in the same period a year ago.
An analysis of the group’s DTC revenues indicated an upward trajectory with a total of €345.13m compared to €328.04m in the prior year, marking a 5.2% increase.
In contrast, wholesale branded revenues declined by 19.8% to €79.49m in Q1 FY 2025 from €99.06m in the prior year quarter.
Regionally, EMEA reported revenues of €154.09m in Q1 FY 2025, accounting for 34% of the group’s total revenue stream.
The Americas experienced growth with revenues climbing to €125.97m and representing 27% of overall revenues.
The Greater China Region (GCR) faced a downturn with revenues at €123.26m, falling by 11.6% from the prior fiscal and contributing to 27% of total revenues.
Lastly, the rest of Asia-Pacific (APAC) saw an increase in revenues to €55.85m, making up 12% of the group’s revenue pie.
Ermenegildo Zegna Group chairman and CEO Ermenegildo “Gildo” Zegna said: “We are encouraged by these early positive results but also mindful of the recent geopolitical and economic uncertainties.
“And while we have not observed significant changes in customers’ behaviour across our brands, we remain vigilant, agile, and focused on our strategic priorities knowing that what truly matters is the strength of our brands and our unwavering commitment to staying close to our customers.”
