MILAN — The Zegna model posted a robust direct-to-consumer enterprise final yr, up 11 %, with double-digit development within the U.S. This seems to dovetail with current indicators of a possible rebound of the posh market supplied by third-quarter figures not too long ago reported by Compagnie Financière Richemont and Burberry.
Do these outcomes mirror a generalized traction within the trade? Not so quick, in keeping with Gildo Zegna, chairman and chief government officer of the Ermenegildo Zegna Group.
Responding to that query in a WWD interview, Zegna stated “the market is rewarding those who have believed in a technique, and pursued and executed it to perfection. Winners are those that perceive they’ve to alter their path or those who already did it and are making use of [the strategy] world wide.”
The chief, talking after the group reported a 2.2 % acquire in 2024 revenues to 1.94 billion euros in contrast with 1.9 billion euros in 2023, beating analysts expectations, stated it’s key “to grasp who you’re,” recruit the suitable expertise, arrange the suitable group “homogeneously and globally. It’s not straightforward, however those who have laid down the suitable technique and invested in it should see an acceleration” of their enterprise.
Gildo Zegna
Courtesy of Zegna
Zegna underscored “there may be nonetheless volatility” affecting China within the first half of the yr, whereas the Americas are sturdy for the group, as is the Center East, which is “flying,” and Europe “will proceed to do properly,” because of locals and vacationers alike. However he admitted “it’s untimely” to forecast “a leap” of the posh trade, citing analysts predicting a low-single-digit development for the yr.
For his half, he believes the Zegna group “should speed up. I used to be impressed by [Zegna brand’s] sturdy efficiency in November and December, which confirmed that when you may have the suitable product, prospects reply. Now we’ve to translate this into Thom Browne and Tom Ford. It’s a matter of execution, suppose gradual and act quick, supplied you may have the suitable model and the suitable technique for that model.”
To make sure, the Zegna model contributed to raise 2024 group gross sales, as did Tom Ford Trend, however Thom Browne has been going by means of a streamlining of its wholesale enterprise that had an affect on the efficiency within the yr.
By model, within the 12 months ended Dec. 31, Zegna gross sales rose 4.9 % to 1.16 billion euros, whereas Thom Browne revenues fell 16.8 % to 314.7 million euros. Gross sales of Tom Ford Trend climbed 33.5 % to 314.5 million euros, however organically, they decreased 0.7 %. The textile sector fell 8.5 % to 138.1 million euros resulting from slower demand from trend manufacturers.
Zegna as soon as once more touted the power of the group’s personal manufacturing pipeline, constructed through the years. As hypothesis mounts about potential new M&A offers, together with the sale of Versace, he was requested for a remark, responding that “the main focus is on ourselves, the precedence is to enhance what we’ve in-house. We’ve sufficient on the desk.
“Past the numbers, I really feel assured in our strategic initiatives pipeline,” he stated.
He trumpeted Zegna’s fall 2025 assortment designed by creative director Alessandro Sartori, “acclaimed as one of many strongest ever for the model with the presentation of our ultra-luxury Vellus Aureum, made by the best wool, developed because of our know-how and distinctive filiera [pipeline]. This has reaffirmed Zegna’s place on the forefront of timeless luxurious menswear.”
Thom Browne resort 2025
Courtesy of Thom Browne
The chief highlighted the strengthening of Thom Browne’s international merchandising and retail groups “with essential additions within the U.S. and Europe and [we] are wanting ahead to seeing the model’s present in February shut the New York Trend Week.”
Thom Browne will nonetheless be impacted at wholesale within the first quarter of the yr, stated Zegna with chief monetary officer Gianluca Tagliabue throughout a convention name with analysts, because the modifications within the DTC channel haven’t been accomplished but.
He additionally remarked on the arrival of Haider Ackermann as the brand new artistic director of Tom Ford Trend, succeeding Peter Hawkings. The designer’s first present for the model will bow at Paris Trend Week in March. Ackermann is predicted to “clearly join with the model’s legacy, providing constant menswear and womenswear collections supported by sturdy equipment,” stated Zegna. “I consider he’s the suitable designer for the time, the model and for us.”
Haider Ackermann
Courtesy of Tom Ford
Whereas throughout the name Zegna stated it was essential for all three manufacturers to supply extra business merchandise inside the luxurious sphere, and avoid “theatrical” experiments, he clarified throughout the interview that it’s a should for the three designers behind every model to “proceed to dream and stage dreamy reveals however these desires should be related to the shops, translated and introduced into the shops” with the suitable merchandise. “We’ve change into luxurious retailers,” he stated.
Certainly, in 2024, group DTC revenues rose 9.9 % to 1.39 billion euros, representing 78 % of the overall.
Within the fourth quarter, DTC revenues had been up 9.3 %, pushed by the Zegna model. As of Dec. 31, Zegna had 281 straight operated shops. Monaco and Wuhan SKP opened within the fourth quarter.
Within the fourth quarter, Thom Browne DTC revenues had been up 3 % to 58.9 million euros, boosted by ongoing double-digit development in South Korea and Japan. As of Dec. 31, the model had 116 DOS, with 10 openings within the final quarter, together with Beijing Taikoo Li and a few conversions in Canada from wholesale into retail.
Within the fourth quarter, Tom Ford Trend DTC revenues climbed 9.6 % to 64.1 million euros, with openings within the quarter, incuding the Singapore flagship at Paragon mall and a retailer in Madrind, bringing the overall to 64 DOS.
In 2024, group wholesale branded revenues fell 12.2 % to 402.3 million euros and within the fourth quarter they had been down 8.2 % to 111.3 million euros.
Within the fourth quarter, Zegna wholesale revenues had been down 6.3 % to 39 million euros, reflecting the selective method to this channel.
Thom Browne wholesale revenues fell 13 % to 35.8 million euros within the fourth quarter. The primary quarter is predicted to indicate a double-digit unfavorable pattern based mostly on the model’s order backlog and by some spring 2025 early deliveries within the quarter.
Tom Ford Trend wholesale revenues had been down 5.2 % to 36.5 million euros, reflecting the conversion into retail of Harrods Man and Saks Girl and the strengthening of the DTC channel.
The chief additionally proudly underscored that Zegna sells solely at full value. Tagliabue remarked on the truth that the highest 5 % of consumers characterize 40 % of Zegna prospects, driving essentially the most development. Known as the “Zegna associates,” they spend above 50,000 euros a yr, and this cluster is “undoubtedly rising at a really strong double-digit tempo, led by America and Europe.”
Within the yr, group natural revenues had been down 1.9 % and at fixed forex they rose 3.4 %.
In 2024, the EMEA area reported 3.3 % development in gross sales to 680.2 million euros, representing 35 % of the overall.
Revenues within the Americas amounted to 524.8 million euros, up 15.4 % and accounting for 27 % of the overall.
Within the Larger China area, gross sales fell 14.5 % to 509.4 million euros representing 26 % of the overall, reflecting the difficult client setting, specifically in mainland China.
In the remainder of the Asia-Pacific space, gross sales rose 19.4 % to 229.9 million euros, representing 12 % of the overall.
Zegna stated he anticipated “good tendencies” within the U.S. for all three manufacturers.
Requested in regards to the altering division retailer panorama within the U.S., he stated he believed Nordstrom’s privatization is “the suitable determination for the household, they’re free to convey ahead their long-term methods.” As for the Saks International merger with Neiman Marcus, he expects this to be “a strengthened group. We’re their first menswear provider and have nice relationships with each, and so they have now determined so as to add Thom Browne.”
He enthused in regards to the reception of the American market to the Zegna model. “We raised the extent of pleasure, and so they cherished the rebranding, the personalization, the individuality of designs and the selective distribution, and we’re opening as much as new prospects.” To wit, the Villa Zegna undertaking began within the U.S., in New York, he recalled saying that it’ll now be touring however couldn’t but share the situation of the following leg.
Tagliabue stated the corporate is “not departing from the consensus of an working revenue of 175 million euros in 2024.”