Sign up to our newsletter for a truly global perspective on the fashion industry
Enter your email to receive editorial updates, special offers and breaking news alerts from Vogue Business. You can unsubscribe at any time. Please see our privacy policy for more information. chest bag wholesale
Sign up to receive the Vogue Business newsletter for the latest luxury news and insights, plus exclusive membership discounts.
Ermenegildo Zegna Group’s revenues dropped 7.8 per cent year-on-year in the third quarter of 2024 to €397 million, largely thanks to an ongoing slump in China, where consumer confidence remains subdued.
In the first nine months of 2024, revenues reached €1.36 billion, up 1.7 per cent year-on-year.
“2024 has turned out to be a different year from what I believe the whole sector initially planned,” Gildo Zegna, chairman and CEO of the group, told investors on Tuesday. “We face this different outlook with a conviction that we must work for the long term in this environment. We took some important decisions and actions to reinforce our brands for the long term, but that will have some short-term impacts on our results.”
The luxury sector has been suffering a downturn since last year, with even the most dominant groups such as LVMH and Kering struggling to maintain growth amid a tough consumer and macro backdrop. Last week, LVMH reported that revenues from its fashion division dropped 5 per cent in Q3, indicating that the luxury slowdown is still showing no signs of easing.
Across the company, direct-to-consumer (DTC) revenues, which make up the majority of the its sales, increased 0.8 per cent in Q3, but wholesale revenues dragged, dropping 26.8 per cent.
By brand, Zegna was the best performing, though sales still declined 2.9 per cent in Q3. Sales at Tom Ford Fashion — which Zegna Group acquired in April 2023 — dropped 12.2 per cent with wholesale declines outweighing positive DTC performance. “For Tom Ford, we appointed Haider Ackermann as creative director in order to bring the brand to its full potential. Haider’s new collection will be installed next year, by June or July,” said Zegna.
Thom Browne sales were down 27.4 per cent, impacted by the intentional decision to cut back on wholesale, as well as negative performance in markets including China. “We are streamlining the Thom Browne business and focusing the brand on DTC while also making some important investments in marketing, merchandising and retail,” said Zegna.
Overall, EMEA revenues declined 2.1 per cent and sales in the Americas dropped 6.1 per cent. The Greater China Region fell 22.8 per cent due to poor consumer confidence — which Zegna said he expects to continue at least through the first part of 2025, but added it would be premature to make any further predictions.
“On China, we are not where we aim to be, but the path is clear and we are now completing the last step moving forward,” he said. The rest of APAC grew 6.1 per cent, with particularly positive results in Japan for Zegna and Thom Browne, and Korea for Browne, too.
The outlook for 2025 “remains uncertain”, Zegna said.
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
Ferragamo sales decline amid luxury slowdown
Alberta Ferretti names new creative director
YNAP’s off-price division is in free fall. Can Mytheresa save it?
Sign up to our newsletter for a truly global perspective on the fashion industry
bag of holding price Enter your email to receive editorial updates, special offers and breaking news alerts from Vogue Business. You can unsubscribe at any time. Please see our privacy policy for more information.