Ermenegildo Zegna Group Revenues1 Reach EUR1.4B in the First Nine Months of 2024. Zegna Brand Continued to Grow Driven by DTC.
-- 9M 2024 revenues grew 2% Year-on-Year (YoY), +3% at constant currency and
-4% organic2.
-- Q3 2024 revenues were EUR397 million, -8% YoY, -6% constant currency and
-7% organic:
-- ZEGNA brand recorded a positive performance of +1% YoY and +3%
organic.
-- Positive DTC performance (+1% YoY and organic) was mainly driven
by ZEGNA DTC supported by double-digit growth in the Americas and
EMEA.
-- The Americas, EMEA, and Japan outperformed the other regions.
MILAN--(BUSINESS WIRE)--October 22, 2024--
Ermenegildo Zegna N.V. $(ZGN)$ (the "Company" and, together with its consolidated subsidiaries, the "Ermenegildo Zegna Group" or the "Group") today announced unaudited revenues of EUR1,357.4 million for the first nine months of 2024, +1.7% YoY from EUR1,334.2 million in the first nine months of 2023 (-4.0% organic). In the third quarter of 2024 revenues reached EUR397.3 million, -7.8% YoY and -6.7% organic.
Ermenegildo "Gildo" Zegna, Chairman and CEO of the Ermenegildo Zegna Group, said: "The first nine months of 2024 saw our revenues grow 2% from the same period last year. Although third quarter revenues showed a slowdown for the Group, I am reassured by the continued positive performance of the ZEGNA brand, boosted by the DTC channel, and also by the quality of talent we have brought into Thom Browne and TOM FORD FASHION as we work to strengthen those teams.
Looking ahead to the fourth quarter of 2024 and into 2025, we continue to foresee an uncertain environment, particularly in the Greater China Region. However, I believe that our Group is fully prepared to face the future with stronger brands, a clearer vision and strengthened management team."
(1) Throughout this press release, revenues for the first nine months and for the third quarter of 2024 are unaudited. (2) Revenues on organic growth basis (organic or organic growth) and on a constant currency basis (constant currency), are non-IFRS financial measures. Constant currency growth is calculated excluding foreign exchange. Organic growth is calculated excluding (a) foreign exchange, (b) acquisitions & disposals, (c) changes in license agreements where the Group operates as a licensee. See the non-IFRS financial measures section starting on page 8 of this press release for the definition and reconciliation of non-IFRS financial measures.
Revenues Analysis for the Nine and Three Months Ended September 30, 2024
REVENUES BY SEGMENT (Unaudited)
For the three
For the nine months 9M 2024 vs 9M months ended Q3 2024 vs Q3
ended September 30, 2023 September 30, 2023
-------------------- ---------------- ------------------ ----------------
(EUR thousands,
except
percentages) 2024 2023 (1) % Organic 2024 2023 (1) % Organic
--------- --------- ------- ------- ------- --------- ------- -------
Zegna 944,413 936,755 0.8% 2.0% 283,875 292,445 (2.9%) (1.3%)
Thom Browne 220,401 281,602 (21.7%) (26.9%) 53,466 73,643 (27.4%) (26.8%)
Tom Ford Fashion 213,928 138,580 54.4% (3.8%) 65,435 74,553 (12.2%) (11.1%)
Eliminations (21,326) (22,748) n.m.(2) n.m. (5,482) (9,511) n.m. n.m.
--------- --------- ------- ------- ------- --------- ------- -------
Total revenues 1,357,416 1,334,189 1.7% (4.0%) 397,294 431,130 (7.8%) (6.7%)
--------- --------- ------- ------- ------- --------- ------- -------
(1) Revenues from Pelletteria Tizeta, a manufacturing company of the Group,
which were allocated to the Zegna segment in 9M 2023, are now presented
within the Tom Ford Fashion segment in 9M 2024. As a result, the
related revenues in 9M 2023 have been reclassified from the Zegna
segment to the Tom Ford Fashion segment to conform to the current
period presentation.
(2) Throughout this section "n.m." means not meaningful.
REVENUES BY BRAND AND PRODUCT LINE (Unaudited)
For the three
For the nine months 9M 2024 vs 9M months ended Q3 2024 vs Q3
ended September 30, 2023 September 30, 2023
-------------------- ---------------- ---------------- ----------------
(EUR thousands,
except
percentages) 2024 2023 % Organic 2024 2023 % Organic
--------- --------- ------- ------- ------- ------- ------- -------
ZEGNA brand 810,610 783,648 3.4% 4.8% 244,543 242,329 0.9% 2.5%
Thom Browne 220,067 280,127 (21.4%) (26.7%) 53,346 73,176 (27.1%) (26.5%)
TOM FORD FASHION 213,924 138,567 54.4% (3.8%) 65,431 74,552 (12.2%) (11.1%)
Textile 101,543 108,555 (6.5%) (5.4%) 29,707 35,483 (16.3%) (15.3%)
Other (1) 11,272 23,292 (51.6%) (29.9%) 4,267 5,590 (23.7%) (24.4%)
--------- --------- ------- ------- ------- ------- ------- -------
Total revenues 1,357,416 1,334,189 1.7% (4.0%) 397,294 431,130 (7.8%) (6.7%)
--------- --------- ------- ------- ------- ------- ------- -------
(1) Other mainly includes revenues from agreements with third party brands.
Zegna segment
In 9M 2024, revenues for the Zegna segment, which includes the ZEGNA brand, textile and other (mainly revenues relating to third party brands), amounted to EUR944.4 million compared to EUR936.8 million in 9M 2023, +0.8% YoY (+2.0% organic). Revenues in Q3 were EUR283.9 million, -2.9% YoY (-1.3% organic) with the negative performance of the textile division offsetting the growth from the ZEGNA brand.
In 9M 2024, revenues for the ZEGNA brand were EUR810.6 million compared to EUR783.6 million in 9M 2023, +3.4% YoY (+4.8% organic(3) ). In the third quarter the brand reported +0.9% YoY growth (+2.5% organic) driven by solid double-digit growth in EMEA, the Americas and Japan. The performance in the Greater China Region $(GCR.AU)$ sequentially deteriorated during the quarter as a reflection of a lower consumer confidence.
In 9M 2024, revenues for Textile were EUR101.5 million compared to EUR108.6 million in 9M 2023 (-6.5% YoY and -5.4% organic), with Q3 at -16.3% YoY and -15.3% organic due to declining orders from third parties. Other revenues, which mainly include revenues for third-party brands, were EUR11.3 million in 9M 2024 compared to EUR23.3 million in 9M 2023 (-51.6% YoY and -29.9% organic), also impacted by the termination of the Tom Ford International distribution license for Tom Ford products(4) , following the acquisition of Tom Ford International LLC on April 28, 2023.
Thom Browne segment
In 9M 2024, revenues for the Thom Browne segment amounted to EUR220.4 million, compared to EUR281.6 million in 9M 2023 (-21.7% YoY and -26.9% organic(5) ). In the third quarter the segment reported EUR53.5 million -27.4% YoY (-26.8% organic), substantially in line with the first six months, and reflecting the decision to streamline the wholesale business. Thom Browne continued to show solid growth in the DTC channel in Japan and Korea, which was more than offset by the negative performance in other geographies, mainly the GCR.
Thom Browne brand revenues, substantially aligned to the segment, were at EUR220.1 million in 9M 2024, compared to EUR280.1 million in 9M 2023 (-21.4% YoY and -26.7% organic).(6)
Tom Ford Fashion segment
Since the consolidation of Tom Ford International LLC and its subsidiaries occurred on April 29, 2023, this section comments the organic performance only, which compares the revenues of the five months in which Tom Ford International LLC was consolidated in 2023 and 2024. See the table above ("Revenues by segment") for information on the reported revenue performance for the Tom Ford Fashion segment.
In 9M 2024, revenues for the Tom Ford Fashion segment amounted to EUR213.9 million, -3.8% organic. In the third quarter the brand reached revenues of EUR65.4 million, with the DTC at +2.5% organic driven by good performance in the U.S. and EMEA DTC channel, while the wholesale channel reported -29.6% organic, largely due to a different timing in deliveries.
Eliminations include revenues from products that the Textile and Other lines sell to the Group's brands.
(3) Excludes foreign exchange impact and revenues in Korea, both DTC and wholesale for each period, since the Group purchased the Korean business on January 1, 2024. (4) The licensing agreement for the production and worldwide distribution of luxury men's ready-to-wear and made-to-measure clothing, footwear, and accessories under the TOM FORD brand expired with the deliveries of the Fall/Winter 2022 collection, and a supply agreement to act as the exclusive supplier for certain TOM FORD menswear products commenced starting with the Spring/Summer 2023 collection and ended upon the acquisition of TFI. (5) Excludes foreign exchange impact and revenues in Korea before June 30, for both DTC and wholesale for each period, since the Group purchased the Korean business on July 1, 2023. (6) The difference between Thom Browne segment and Thom Browne brand refers to Thom Browne stores in MEA managed by Zegna Gulf Trading LLC on behalf of Thom Browne and allocated to Other in the revenues by brand and product line.
(MORE TO FOLLOW) Dow Jones Newswires
October 22, 2024 06:30 ET (10:30 GMT)
Comments