Global luxury company Ermenegildo Zegna has reported an 8.1% increase in revenue for the first quarter of 2024 (Q1 FY24), reaching €463.2m ($494.5m), compared with €428.3m in Q1 FY23.
During the quarter ending 31 March 2024, the Zegna segment saw revenues of €324.9m, up 1.7% year-on-year (YoY) from €319.3m in Q1 FY23.
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The Thom Browne segment experienced a decline, with revenues falling 30.2% YoY to €79.1m while the Tom Ford Fashion segment also reported revenues of €65.0m over the quarter.
The company’s total direct-to-consumer (DTC) revenues showed a robust increase of 20.4% YoY amounting to €328.0m compared with €272.4m in the same period a year ago.
On the other hand, Ermenegildo Zegna’s wholesale branded revenues decreased by 11.5% YoY to €99.1m, with a significant 25.9% drop on an organic basis.
Regionally, the company’s Americas business saw a substantial revenue increase of 57.7% YoY to €114.2m and the Europe, Middle East, and Africa (EMEA) region recorded a 4.3% growth in revenues, reaching €156.6m.
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By GlobalDataAccounting for approximately 40% of EMEA revenues, Italy underperformed mainly due to the Thom Browne segment.
The Greater China region faced a decline of 15.3% YoY in revenues while the rest of the Asia-Pacific region enjoyed a 28.7% increase in revenues to €52.4m.
Ermenegildo Zegna Group chair and CEO Gildo Zegna said: “Closing the first quarter of 2024 with double-digit revenue growth on a constant currency basis is reassuring given the challenges that the sector is facing.
“Our growth in the Americas – also in double digits – and the ongoing successful delivery on our ZEGNA One Brand strategy give me additional assurance that we are moving in the right direction.
“Looking at the rest of the year, we have a clear and defined path in front of us. I am confident that we are taking the right actions to make our brands even stronger and to deliver on our medium-term ambitions.”
