Zegna Group Revenues Down 1% as Wholesale Struggles and DTC Grows

Business of Fashion

25-04-2025

Ermenegildo Zegna Group has reported first-quarter revenues of €459 million ($522 million), a 1 percent decline compared with €463 million in the same period last year.
Steep losses in wholesale revenue for the Italian luxury fashion group were offset by steady direct-to-consumer sales, particularly in the Europe, Middle East and Africa region, the Americas and China, which totalled €345 million and represented 81 percent of the group's branded product revenues.
The Zegna brand's year-on-year revenue rose 3.6 percent to €293 million, with 4.7 percent growth in DTC revenues. Thom Browne's revenue declined 18.6 percent to €64 million, with 3.5 percent growth in DTC revenues.
Tom Ford fashion sales grew 3.8 percent, reaching €67.5 million. DTC sales soared 10 percent after Haider Ackermann, who was named creative director last September, presented his debut collection for Autumn/Winter 2025 during Paris Fashion Week, which received a positive reception and caused an uptick in store foot traffic.
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Impacted by the decision to convert wholesale shops-in-shop into retail concessions, Zegna Group's wholesale branded revenues declined 19.8 percent year on year to €79.5 million. Thom Browne wholesale revenues, further damaged by wholesale channel streamlining and differing delivery times, fell 48 percent to €17.9 million.
'We are encouraged by these early positive results but also mindful of the recent geopolitical and economic uncertainties,' Zegna Group chairman and CEO Ermenegildo Zegna said in a statement, adding, 'While we have not observed significant changes in customers' behaviour across our brands, we remain vigilant, agile and focused on our strategic priorities, knowing that what truly matters is the strength of our brands and our unwavering commitment to staying close to our customers.'
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Zegna Group Profits Decline 30%
The Italian fashion group's namesake label grew last year, but declining sales at its Thom Browne and Tom Ford weighed on profit. Performance is expected to improve 'gradually' as revenues rise an average of 4 to 7 percent annually through 2027, according to the company's forecasts.