The Italian fashion group Ermenegildo Zegna NV closed the 2024 financial year with a small increase in sales. However, the group only owed the increase to the takeover of Tom Ford Fashion, which was completed at the end of April 2023. This emerges from preliminary results published by the Ermenegildo Zegna Group on Monday.
The group continues to benefit from the takeover of Tom Ford Fashion
Accordingly, group sales in the most recent financial year reached almost 1.95 billion euros, which meant an increase of 2.2 percent compared to 2023. In the previous year, however, Tom Ford Fashion’s revenues had only been included in the balance sheet since consolidation. On an organic basis – i.e. adjusted for currency effects and changes in the group portfolio and licensing business – sales fell by 1.9 percent in the past year.
However, the group was able to record an upward trend in the final quarter. Compared to the same period last year, sales increased by 3.3 percent (organically +2.9 percent) to 589.2 million euros.
For the entire financial year, the Zegna division achieved an increase of 2.0 percent (organically +2.5 percent) to 1.35 billion euros. In the Thom Browne division, however, sales fell by 17.2 percent (organically -20.8 percent) to 314.8 million euros. The Tom Ford Fashion segment increased its reported revenue by 33.5 percent to 314.5 million euros, although on an organic basis sales fell by 0.7 percent.
In China, revenues are falling by double digits
The group’s sales development was slowed last year by significant losses in the Greater China region. Revenue there shrank by 14.5 percent (organically -13.7 percent) to 509.4 million euros.
The other markets, however, were able to make gains. In the EMEA region, which includes Europe, the Middle East and Africa, sales rose by 3.3 percent (organic +0.4 percent) to 680.3 million euros, in the Americas by 15.4 percent (organic +6, 8 percent) to 524.8 million euros and in the Asia-Pacific region outside China by 19.4 percent (organic +6.9 percent) to 229.9 million euros.
The group plans to publish its full results for 2024 on March 27th.