Specialising in luxury menswear, Ermenegildo Zegna Group posted 8.1 per cent sales growth to €463.2 million during the Q1 FY24. These results were driven primarily by strong performances in the United States and on its direct sales channel, while like most of its competitors, the Piedmont-based group, which is listed on the New York Stock Exchange, has been heavily penalised by the slowdown in China.
The group closed Q1 FY24 with a double-digit growth at constant exchange rates. It also recorded double-digit growth in the Americas through the successful implementation of its Zegna One Brand Strategy, says Gildo Zegna, CEO.
Between Jan-Mar’24, the group’s sales in America soared by 57.7 per cent to €114.2 million. In Europe, its sales increased by 4.3 per cent. However, in terms of organic growth, the group’s sales declined by 6.5 per cent compared to the same period in 2023, reflecting a negative performance from Thom Browne.
In the Asia-Pacific region excluding China, the group’s sales rose by 28.7 per cent, thanks to the strong performance of the Japanese market and the conversion of Thom Browne and Zegna's Korean monobrand shops from a wholesale to a retail format.
In the first quarter, the group's flagship brand Zegna, led by designer Alessandrp Sartori registered a 4 per cent rise in sales to €282.9 million. The brand continues to grow, albeit at a much slower pace.
For its part, Thom Browne’s sales declined by 29.6 per cent to €79.2 million during Q1 FY24, compared to the same period a year earlier. While the brand continues to record good results in Japan, it is particularly down in Greater China and Europe, where it has decided to reduce and rationalise its multi-brand distribution network to support direct sales. In the first quarter, Thom Browne's wholesale sales almost halved, from €69.7 million in the first quarter of 2023 to €34.5 million a year later, while they rose by 4.4 per cent in its own shops.
The fashion business of the American label Tom Ford posted sales of €65 million in the first three months of the year, reflecting a good performance, mainly in the United States.
