27-03-2025
Despite Challenging Environment, Zegna Group Sees Sales Rising to Up to 2.4B Euros by 2027
MILAN – Amid market uncertainty, Ermenegildo Zegna Group is confident in its growth prospects.
With its full year 2024 results, the company issued 2027 guidance of revenues in the range of 2.2 billion to 2.4 billion euros. That compares to the 1.94 billion euros in revenues in 2024. Earnings before interest and taxes, or EBIT, are expected to reach 250 million to 300 million euros by 2027.
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'In 2024 we took decisive actions, strengthening our organization and prioritizing investments that are strategic in our brands,' Gildo Zegna, chairman and chief executive officer of Ermenegildo Zegna Group, said in a statement Thursday.
The company's net profit narrowed to 90.9 million euros versus 135.7 million euros in 2023, penalized by a higher tax rate of 30 percent compared to just 20 percent last year. EBIT was also impacted, falling to 184 million euros versus 220.2 million euros in 2023.
In terms of sales, the Zegna brand continued to be a key driver for the group last year, offset by the streamlining of the Thom Browne wholesale channel.
By brand, Zegna sales rose 4.9 percent to 1.16 billion euros, while Thom Browne revenues fell 16.8 percent to 314.7 million euros. Sales of Tom Ford Fashion climbed 33.5 percent to 314.5 million euros.
In 2024, the EMEA region reported 3.3 percent growth in sales to 680.2 million euros.
Revenues in the Americas amounted to 524.8 million euros, up 15.4 percent.
In the Greater China region, sales fell 14.5 percent to 509.4 million euros, reflecting the challenging consumer environment, in particular in mainland China.
In the rest of the Asia-Pacific area, sales rose 19.4 percent to 229.9 million euros.
Looking ahead, the group said that it is necessary to maintain 'a cautious approach, while also remaining committed to delivering on our projects. We will do so with discipline, agility, and a sharp focus on executing our vision while creating value for our stakeholders.'
Market watchers will look for pointers on the group's fourth quarter financial performance during the financial webcast scheduled for Thursday afternoon CET.
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