- Ermenegildo Zegna Group (ZGN, Financial) reported Q1 2025 revenues of €458.8 million, a slight decrease of 0.9% YoY.
- The Direct-to-Consumer (DTC) channel proved pivotal, achieving a 5.2% YoY growth.
- While DTC performance was strong, wholesale revenues saw a notable decline of 19.8% YoY.
Ermenegildo Zegna Group (ZGN) has announced its financial results for the first quarter of 2025, reporting revenues of €458.8 million, marking a minor 0.9% decrease compared to the same period in the previous year. Despite ongoing sector challenges, the company saw positive outcomes in its Direct-to-Consumer (DTC) initiatives, which grew by 5.2% year-on-year, primarily driven by robust performance from all three brands: ZEGNA, Thom Browne, and TOM FORD FASHION.
The ZEGNA brand experienced a 4% increase in revenues due to strong DTC performance, especially in the Americas and EMEA regions. Similarly, TOM FORD FASHION saw a significant 10% rise in DTC sales, benefiting from new store openings and the favorable reception of Haider Ackerman’s fashion collection. Conversely, the Thom Browne segment faced a revenue decline of 18.6% due to deliberate wholesale channel streamlining.
The wholesale segment presented challenges, showing a 19.8% decline year-on-year. ZEGNA's wholesale revenues fell by 2.6%, while Thom Browne experienced a substantial 48% drop, reflecting strategic shifts towards retail concessions and DTC focus.
Geographically, the Americas posted a robust 9.5% revenue increase, driven by strong consumer demand in the United States. However, the Greater China Region's revenues declined by 11.6%, still influenced by a cautious consumer environment.
Ermenegildo Zegna, Chairman and CEO, emphasized the company's attentiveness to geopolitical and economic uncertainties while maintaining a commitment to brand strength and customer proximity. Looking ahead, the company remains focused on its strategic priorities and agile responses to market changes.
