Ermenegildo Zegna Group continues to grow at the start of the year, but at a slower pace. The Italian company specialising in luxury menswear posted sales of €463.2 million in the first quarter of 2023, up 8.1% (+10.7% at constant exchange rates). 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. In particular, its Thom Browne brand.

“Closing the first quarter of 2024 with double-digit growth at constant exchange rates is a positive sign, given the challenges facing the industry. Our growth in the Americas – also in double figures – and the continued success of our Zegna One Brand strategy, confirm that we are heading in the right direction,” commented CEO Gildo Zegna in a statement.

On the American market, which accounts for a quarter of its turnover, the Italian group saw its sales soar by 57.7% to €114.2 million between January and March 2024. In Europe, which accounts for 34% of total revenues, they are up by just 4.3% compared to the same period in 2023, and are even down by 6.5% in terms of organic growth, “reflecting a negative performance from Thom Browne.” The American label’s decline is being felt particularly in Italy – which accounts for around 40% of the region’s sales – which has underperformed.

In the Asia-Pacific region excluding China, sales rose by 28.7%, “mainly 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,” according to the company, which on the other hand recorded a significant decline in the Chinese market. In this country, which accounts for 30% of the group’s total revenues, sales plunged by 15.3% over the first three months of the year, to 139.4 million euros (-13.1% on an organic growth basis).

In the first quarter, Zegna, the group’s flagship brand headed by designer Alessandro Sartori, recorded sales of 282.9 million euros (+4%) between January and March 2024, compared with an increase of more than 20% a year earlier. It continues to grow, albeit at a much slower pace, “thanks to healthy growth in key categories, in particular footwear and leisurewear,” notes the group, highlighting double-digit increases in Europe, the Americas and Japan, while Zegna sales declined in Greater China.

American label Thom Browne declines sharply 

For its part, Thom Browne saw its sales fall in the first quarter of 2024, to €79.2 million, down 29.6% 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% in its own shops.

The fashion business of the American label Tom Ford, which has been part of the Ermenegildo Zegna group for just over a year, posted sales of €65 million in the first three months of the year, “reflecting a good performance, mainly in the United States.” “I am confident in the decisions we are taking to accelerate direct control of our businesses, particularly Thom Browne and Tom Ford Fashion. We have also strengthened our team with new talent and leadership at all levels, knowing how essential our people are to achieving our results,” concluded Gildo Zegna..