The Italian fashion group Ermenegildo Zegna NV had to accept a slight decline in sales in the first quarter of the 2025 financial year. This was mainly due to the ongoing weakness in China and losses in the Thom Brownne brand.
According to the preliminary figures that the company released on Thursday, the corporate turnover amounted to EUR 458.8 million from January to March. In this way, he declined by 0.9 percent compared to the opening quarter of the previous year. On an organic basis – that is, adjusted to currency effects and changes in the group portfolio and in the license business – revenues dropped by 1.2 percent.
Increases in their own retail cannot fully compensate for losses in the wholesale business
In their own retail, sales rose by 5.2 percent (organic +4.6 percent) to 345.1 million euros. However, this was not enough to compensate for a decline of 19.8 percent (organic -19.4 percent) to 79.5 million euros in the wholesale business. The company justified the considerable losses in this sales channel, among other things, with the strategic tightening of the Wholesale business and the takeover of some boutiques on its own.
The Zegna division achieved a sales increase of 2.6 percent (organic +2.2 percent) to EUR 333.3 million, the Tom Ford Fashion segment was able to increase by 3.8 percent (adjusted for currency +3.5 percent) to 67.5 million euros. However, the revenues of the Thom Browne brand decreased by 18.6 percent (organic -18.8 percent) to 64.4 million euros. According to the group, the significant minus was due not least to the targeted restriction of wholesale sales.
In China and Europe, revenues are decreasing
The development of sales continued to be slowed down by the weak demand in Großchina. There, revenues shrank by 11.6 percent (organic -12.4 percent) to 123.3 million euros. In the EMEA region, which includes Europe, the Middle East and Africa, the quarterly turnover was EUR 154.1 million and thus by 1.6 percent (organic -1.8 percent) below the relevant previous year.
On the other hand, it went up in America. There, sales increased by 9.5 percent (organic +8.9 percent) to 125.0 million euros. In the Asian-Pacific area outside China, the proceeds rose by 6.5 percent (organic +8.4 percent) to 55.8 million euros, not least thanks to good business in Japan.