- H1 2024 grew 6% Year-on-Year (YoY), +8% at constant currency
and -2.7% organic2.
- In Q2 2024 revenues rose to €497 million, +5% YoY, +6%
constant currency with flat organic growth:
- ZEGNA and TOM FORD FASHION recorded solid growth of +5% YoY
and +30% YoY respectively (both achieving +5% organic).
- Direct-to-Consumer (DTC) drove the Group’s revenues growth
with +10% YoY and +2% organic.
- United States and EMEA outperformed other
geographies.
Ermenegildo Zegna N.V. (NYSE:ZGN) (the “Company” and, together
with its consolidated subsidiaries, the “Ermenegildo Zegna Group”
or the “Group”) today announced unaudited revenues of €960.1
million for the first half of 2024, +6.3% YoY from €903.1 million
in the first half of 2023 (-2.7% organic). In the second quarter
revenues reached €497.0 million, +4.7% YoY and -0.4% organic.
Ermenegildo “Gildo” Zegna, Chairman and CEO of the Ermenegildo
Zegna Group, said: “In the first half of the year our Group reached
€960 million of revenues with 6% growth and an improved organic
performance in the second quarter.
ZEGNA continued to deliver robust performance with a +5.9%
organic growth, driven by the DTC channel, up double-digit in EMEA
and in the U.S. These results confirm that we are successfully
delivering on ZEGNA’s evolution.
At Thom Browne we are focusing on the strategic projects crucial
to unlocking the brand’s long-term potential. The couture show in
Paris confirmed Thom’s extraordinary talent.
At TOM FORD FASHION, we have just announced that Peter Hawkings
is stepping down as Creative Director of the brand and his
successor will be announced in the near future. As we look to the
next phase of the brand’s development, I am today even more
optimistic about the bright future of this business.
Looking ahead, I remain fully confident in the strategy we have
put in place and the trajectory we are on. Our Group is a custodian
of three authentic brands, each with unexplored long-term growth
potential. We all recognize that 2024 will remain challenging,
which is why we have been working on cost control initiatives
across the Group. Nevertheless, we will continue to act with
perseverance and firmness, combined with foresight and vision, to
pursue our long-term ambitions.”
___________________________________________
1 Throughout this press release, revenues
for the first half of 2024 are preliminary and unaudited.
2 Revenues on organic growth basis
(organic or organic growth) and on a constant currency basis
(constant currency), are non-IFRS financial measures. Constant
currency growth is calculated excluding foreign exchange. Organic
growth is calculated excluding (a) foreign exchange, (b)
acquisitions & disposals, (c) changes in license agreements
where the Group operates as a licensee. See the non-IFRS financial
measures section starting on page 8 of this press release for the
definition and reconciliation of non-IFRS financial measures
Revenues Analysis for the Six and Three
Months Ended June 30, 2024
REVENUES BY SEGMENT (Unaudited)
For the six months ended June
30,
H1 2024 vs H1 2023
For the three months ended
June 30,
Q2 2024 vs Q2 2023
(€ thousands, except percentages)
2024
2023(1)
Revenues Growth
Organic Growth
2024
2023(1)
Revenues Growth
Organic Growth
Zegna
660,538
644,310
2.5%
3.5%
335,638
324,986
3.3%
2.7%
Thom Browne
166,935
207,959
(19.7%)
(27.0%)
87,869
94,708
(7.2%)
(17.8%)
Tom Ford Fashion
148,493
64,027
131.9%
4.7%
83,473
64,027
30.4%
4.7%
Eliminations
(15,844)
(13,237)
n.m.(2)
n.m.
(10,015)
(8,974)
n.m.
n.m.
Total revenues
960,122
903,059
6.3%
(2.7%)
496,965
474,747
4.7%
(0.4%)
___________________________________________
(1)
Revenues from Pelletteria Tizeta, a manufacturing company of the
Group, which were allocated to the Zegna segment in H1 2023, are
now presented within the Tom Ford Fashion segment in H1 2024. As a
result, the related revenues in H1 2023 have been reclassified from
the Zegna segment to the Tom Ford Fashion segment to conform to the
current period presentation.
(2)
Throughout this section “n.m.” means not meaningful.
REVENUES BY BRAND AND PRODUCT LINE (Unaudited)
For the six months ended June
30,
H1 2024 vs H1 2023
For the three months ended
June 30,
Q2 2024 vs Q2 2023
(€ thousands, except percentages)
2024
2023
Revenues Growth
Organic Growth
2024
2023
Revenues Growth
Organic Growth
ZEGNA brand
566,067
541,319
4.6%
5.9%
283,197
269,430
5.1%
5.0%
Thom Browne
166,721
206,951
(19.4%)
(26.7%)
87,514
94,399
(7.3%)
(17.9%)
TOM FORD FASHION
148,493
64,015
132.0%
4.7%
83,473
64,015
30.4%
4.7%
Textile
71,836
73,072
(1.7%)
(0.6%)
38,593
39,254
(1.7%)
(0.5%)
Other (1)
7,005
17,702
(60.4%)
(32.9%)
4,188
7,649
(45.2%)
(23.0%)
Total revenues
960,122
903,059
6.3%
(2.7%)
496,965
474,747
4.7%
(0.4%)
____________________________________________
(1)
Other mainly includes revenues from agreements with third party
brands.
Zegna segment
In H1 2024, revenues for the Zegna segment, which includes the
ZEGNA brand, textile and other, amounted to €660.5 million compared
to €644.3 million in H1 2023, +2.5% YoY (+3.5% organic). Revenues
in Q2 were €335.6 million, +3.3% YoY (+2.7% organic) driven by the
solid performance from the ZEGNA brand.
In H1 2024, revenues for the ZEGNA brand were €566.1
million compared to €541.3 million in H1 2023, +4.6% YoY (+5.9%
organic3). The performance was driven by ongoing robust growth in
the U.S. and EMEA. Organic performance in the Greater China Region
(GCR) remained in line with Q1 2024 (single-digit negative) in an
increasingly challenging environment for the sector.
In H1 2024, revenues for Textile were €71.8 million
compared to €73.1 million in H1 2023 (-1.7% YoY and -0.6% organic),
with Q2 coming in substantially in line with Q1. Other
revenues, which mainly includes revenues for third-party brands,
were €7.0 million compared to €17.7 million in H1 2023 (-60.4% YoY
and -32.9% organic), due to the termination of the Tom Ford
International distribution license for Tom Ford products4,
following the acquisition of Tom Ford International LLC on April
28, 2023.
Thom Browne segment
In H1 2024, revenues for the Thom Browne segment amounted
to €166.9 million, compared to €208.0 million in H1 2023 (-19.7%
YoY and -27.0% organic5). The performance of the second quarter
(-7.2% YoY and -17.8% organic), which improved sequentially,
reflected the ongoing streamlining of the wholesale business, which
was only partially counterbalanced by improved DTC performance and
by a less demanding base of comparison. The brand continued to
record strong results in Japan, which were offset by a decline in
the GCR, EMEA and the Americas, also impacted by the decision to
streamline the wholesale business.
Thom Browne brand results are substantially aligned to
the segment, with H1 2024 revenues at €166.7 million compared to
€207.0 million in H1 2023 (-19.4% YoY and -26.7% organic).6
_____________________________________ 3 Excludes foreign exchange
impact and revenues in Korea, both DTC and wholesale for each
period, since the Group purchased the Korean business on January 1,
2024. 4 The licensing agreement for the production and worldwide
distribution of luxury men’s ready-to-wear and made-to-measure
clothing, footwear, and accessories under the TOM FORD brand
expired with the deliveries of the Fall/Winter 2022 collection, and
a supply agreement to act as the exclusive supplier for certain TOM
FORD menswear products commenced starting with the Spring/Summer
2023 collection and ended with the acquisition of TFI. 5 Excludes
foreign exchange impact and revenues in Korea, both DTC and
wholesale for each period, since the Group purchased the Korean
business on July 1, 2023 in the country. 6 The difference between
Thom Browne segment and Thom Browne brand refers to Thom Browne
stores in MEA managed by Zegna Gulf Trading LLC on behalf of Thom
Browne and allocated to Other in the revenues by brand and product
line.
Tom Ford Fashion segment
Since the consolidation of Tom Ford International LLC and its
subsidiaries occurred on April 29, 2023, this section comments only
the organic performance, which compares the revenues of the two
months in which Tom Ford International LLC was consolidated in 2023
and 2024.
In H1 2024, revenues for the Tom Ford Fashion segment amounted
to €148.5 million, +4.7% organic (compared to the last two months
of Q2 2023), driven by a good performance in DTC and the U.S. The
company is continuing to strengthen the team and set the foundation
for its next evolution.
Eliminations include revenues from products that the
Textile and Other lines sell to the Group’s brands.
REVENUES BY DISTRIBUTION CHANNEL (Unaudited)
For the six months ended June
30,
H1 2024 vs H1 2023
For the three months ended
June 30,
Q2 2024 vs Q2 2023
(€ thousands, except percentages)
2024
2023
Revenues Growth
Organic Growth
2024
2023
Revenues Growth
Organic Growth
Direct to
Consumer (DTC)
ZEGNA brand
486,561
465,710
4.5%
5.1%
246,946
236,114
4.6%
4.0%
Thom Browne
89,976
82,924
8.5%
(12.8%)
45,257
40,075
12.9%
(11.6%)
TOM FORD FASHION
93,062
34,751
167.8%
1.3%
49,361
34,751
42.0%
1.3%
Total Direct to Consumer (DTC)
669,599
583,385
14.8%
2.4%
341,564
310,940
9.8%
1.7%
As a percentage of branded products
(1)
76 %
72 %
75 %
73 %
Wholesale
branded
ZEGNA brand
79,506
75,609
5.2%
10.4%
36,251
33,316
8.8%
11.8%
Thom Browne
76,745
124,027
(38.1%)
(36.0%)
42,257
54,324
(22.2%)
(22.4%)
TOM FORD FASHION
55,431
29,264
89.4%
8.7%
34,112
29,264
16.6%
8.7%
Total Wholesale branded
211,682
228,900
(7.5%)
(14.9%)
112,620
116,904
(3.7%)
(5.0%)
As a percentage of branded products
24 %
28 %
25 %
27 %
Textile
71,836
73,072
(1.7%)
(0.6%)
38,593
39,254
(1.7%)
(0.5%)
Other (2)
7,005
17,702
(60.4%)
(32.9%)
4,188
7,649
(45.2%)
(23.0%)
Total revenues
960,122
903,059
6.3%
(2.7%)
496,965
474,747
4.7%
(0.4%)
__________________________________________
(1)
Branded products refer to the products sold under the three brands
that the Group operates, through the DTC or wholesale branded
distribution channels.
(2)
Other mainly includes revenues from agreements with third party
brands.
DTC Revenues Analysis
In H1 2024, DTC revenues were €669.6 million compared to €583.4
million in H1 2023 (+14.8% YoY and +2.4% organic). ZEGNA DTC
revenues drove the Group’s performance, increasing by 4.5% YoY and
+5.1% organic growth, thanks to the solid performance in the
Americas and EMEA. In Q2 ZEGNA DTC organic growth reached a good
+4.0% notwithstanding the challenging base of comparison. At the
end of June, ZEGNA counted 279 Directly Operated Stores (DOS), with
2 net openings in Q2, including Taormina, Italy.
Thom Browne DTC revenues were +8.5% YoY in H1 2024. Excluding
the effect of the acquisition of the Thom Browne business in South
Korea (previously accounted in the wholesale channel), DTC revenues
declined by 12.8% organic, reflecting the challenging environment,
especially in the GCR. Revenues improved slightly in Q2, mainly
driven by a stronger Japan, but still with negative growth. At the
end of June, Thom Browne counted 102 DOS, including 13 new small
concession stores at Nordstrom and one store in Beijing WF
Central.
TOM FORD FASHION DTC revenues reached €93.1 million, with 56 DOS
at the end of June, including two net openings in the second
quarter.
Wholesale Branded Revenues Analysis
In H1 2024, wholesale branded revenues were €211.7 million
compared to €228.9 million in H1 2023 (-7.5% YoY and -14.9%
organic).
ZEGNA wholesale revenues were €79.5 million compared to €75.6
million in H1 2023 (+5.2% YoY and +10.4% organic), mainly driven by
different timing in deliveries.
Thom Browne wholesale revenues declined to €76.7 million
compared to €124.0 million in H1 2023 (-38.1% YoY and -36.0%
organic), still reflecting the decision to streamline the brand’s
wholesale business. In Q2 2024 Thom Browne wholesale performance
slightly improved thanks to a less demanding base of
comparison.
TOM FORD FASHION wholesale revenues were €55.4 million.
REVENUES BY GEOGRAPHIC AREA (Unaudited)
For the six months ended June
30,
H1 2024 vs H1 2023
For the three months ended
June 30,
Q2 2024 vs Q2 2023
(€ thousands, except percentages)
2024
2023
Revenues Growth
Organic Growth
2024
2023
Revenues Growth
Organic Growth
EMEA (1)
336,591
322,680
4.3%
(1.5%)
180,029
172,572
4.3%
2.8%
Americas (2)
246,046
190,112
29.4%
6.7%
131,869
117,705
12.0%
4.5%
Greater China Region
266,324
306,835
(13.2%)
(11.7%)
126,925
142,309
(10.8%)
(10.0%)
Rest of APAC (3)
109,990
82,190
33.8%
5.4%
57,556
41,463
38.8%
5.9%
Other (4)
1,171
1,242
(5.7%)
(17.5%)
586
698
(16.0%)
(21.2%)
Total revenues
960,122
903,059
6.3%
(2.7%)
496,965
474,747
4.7%
(0.4%)
__________________________________________
(1)
EMEA includes Europe, the Middle East and Africa.
(2)
Americas includes the United States of America, Canada, Mexico,
Brazil and other Central and South American countries.
(3)
Rest of APAC includes Japan, South Korea, Singapore, Thailand,
Malaysia, Vietnam, Indonesia, Philippines, Australia, New Zealand,
India and other Southeast Asian countries.
(4)
Other revenues mainly include royalties.
In H1 2024, EMEA recorded revenues of €336.6 million (+4.3% YoY
and -1.5% organic), accounting for 35% of Group’s revenues.
Performance for the region was influenced by strong ZEGNA results,
offset by the negative results of Thom Browne, especially in the
wholesale channel.
Revenues in the Americas amounted to €246.0 million (+29.4% YoY
and +6.7% organic), accounting for 26% of the Group revenues, with
double-digit growth from ZEGNA and a solid performance from TOM
FORD FASHION.
The GCR recorded revenues of €266.3 million (-13.2% YoY and
-11.7% organic), accounting for 28% of the Group’s revenues,
impacted by a still-subdued consumer confidence, with ZEGNA
continuing to outperform in the region. Revenues in the rest of
APAC grew to €110.0 million (+33.8% YoY and +5.4% organic), driven
by the strong double-digit organic performance in the Japanese
market offset by the performance of the other markets in the
region.
Group Monobrand(1) Store Network at June 30, 2024
At June 30, 2024
At December 31, 2023
At June 30, 2023
Stores
ZEGNA
Thom Browne
TOM FORD FASHION
Group
ZEGNA
Thom Browne
TOM FORD FASHION
Group
ZEGNA
Thom Browne
TOM FORD FASHION
Group
EMEA (2)
75
9
7
91
71
9
4
84
69
10
4
83
Americas
64
20
12
96
59
7
12
78
55
7
11
73
Greater China Region
82
35
11
128
79
33
10
122
79
32
11
122
Rest of APAC
58
38
26
122
44
37
25
106
43
17
25
85
Total Direct to Consumer (DTC)
279
102
56
437
253
86
51
390
246
66
51
363
EMEA (2)
46
7
16
69
55
7
14
76
59
7
12
78
Americas
67
3
50
120
63
3
50
116
63
3
51
117
Greater China Region
13
10
—
23
13
10
—
23
13
11
—
24
Rest of APAC
4
4
5
13
20
5
6
31
22
22
7
51
Total Wholesale
130
24
71
225
151
25
70
246
157
43
70
270
Total
409
126
127
662
404
111
121
636
403
109
121
633
_________________________________________
(1)
Monobrand store count includes our DOSs (which are divided into
boutiques and outlets) and our Wholesale monobrand stores
(including also monobrand franchisees).
(2)
Does not include any stores in Russia at June 30, 2024, December
31, 2023 or at June 30, 2023. Although some stores may still be
operating at June 30, 2024, they have not been supplied by the
Group since February 2022 and have therefore been excluded from the
Group’s store count.
SIGNIFICANT EVENTS OCCURRED IN THE SECOND QUARTER OF
2024
VILLA ZEGNA - Oasi Linen in Shanghai
On May 23, 2024, ZEGNA brought the new “VILLA ZEGNA” experience
to Shanghai. “VILLA ZEGNA” reflects ZEGNA’s new approach to
interacting with its customers, offering them immersive experiences
that foster emotional connections to the brand. The one-week event
was hosted in a building of three floors, seamlessly blending the
vision of the founder, the brand’s history and the fabrics that
made ZEGNA the leading menswear brand in the world – which,
together, gave guests the opportunity to immerse themselves in the
realm of top luxury.
ZEGNA Summer 2025 Fashion Show
On June 17, 2024, ZEGNA presented its Summer 2025 Fashion Show
in an industrial Milanese space that was transformed into a field
of linen to evoke the golden fields of Normandy ready for harvest.
Envisioned by Artistic Director, Alessandro Sartori, the menswear
collection celebrated the unique characteristics of the brand’s
fabric of choice for summer: Oasi Lino. The collection represents a
development central to the brand’s Our Road to Traceability, as the
Oasi Lino fibers are fully traceable.
Thom Browne Couture Show
On June 24, 2024, with references to the upcoming Olympic Games,
Thom Browne held its second women’s and men’s 2024 couture
collection in Paris. The show was an immersive experience that
centered on muslin and with references to the upcoming Olympic
Games, all of which revealed an incredible exhibit of traditional
couture techniques.
SIGNIFICANT EVENTS OCCURRED AFTER JUNE 30, 2024
TOM FORD FASHION - Departure of Creative Director
On July 22, 2024, it was announced that Peter Hawkings is
stepping down as Creative Director of the brand. Peter Hawkings has
been at TOM FORD since its inception and at the helm of creative
since April 2023.
The Spring-Summer 2025 collection will be presented in the Milan
showroom in September 2024. A successor will be announced in the
near future.
UPCOMING EVENTS
Next releases
- September 18, 2024: H1 2024 Financial Results
- October 22, 2024: Q3 2024 Unaudited Revenues
Forward Looking
Statements
This communication contains forward-looking statements that are
based on beliefs and assumptions and on information currently
available to the Company. In particular, statements regarding
future financial performance and the Group’s expectations as to the
achievement of certain targeted metrics at any future date or for
any future period are forward-looking statements. In some cases,
you can identify forward-looking statements by the following words:
“may,” “will,” “could,” “would,” “should,” “expect,” “intend,”
“plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,”
“potential,” “continue,” “ongoing,” “target,” “seek”, “aspire,”
“goal,” “outlook,” “guidance,” “forecast,” “prospect” or the
negative or plural of these words, or other similar expressions
that are predictions or indicate future events or prospects,
although not all forward-looking statements contain these words.
Any statements that refer to expectations, projections or other
characterizations of future events or circumstances, including
strategies or plans, are also forward-looking statements. These
statements involve risks, uncertainties and other factors that may
cause actual results, levels of activity, performance or
achievements to be materially different from the information
expressed or implied by these forward-looking statements, and, as
such, undue reliance should not be placed on them. Actual results
may differ materially from those expressed in forward-looking
statements as a result of a variety of factors, including: the
recognition, integrity and reputation of our brands; our ability to
anticipate trends and to identify and respond to new and changing
consumer preference; the COVID-19 pandemic or similar public health
crises; international business, regulatory, social and political
risks; the conflict in Ukraine and sanctions imposed onto Russia;
the occurrence of acts of terrorism or similar events, conflicts,
civil unrest or situations of political instability; developments
in Greater China and other growth and emerging markets; our ability
to implement our strategy; recent and potential future
acquisitions; disruption to our manufacturing and logistics
facilities; risks related to the sale of our products through our
direct-to-consumer channel, as well as through points of sale
operated by third parties; our dependence on our local partners to
sell our products in certain markets; fluctuations in the price or
quality of, or disruptions in the availability of, raw materials;
our ability to negotiate, maintain or renew our license or
co-branding agreements with high end third party brands; tourist
traffic and demand; our dependence on certain key senior personnel
as well as skilled personnel; our ability to protect our
intellectual property rights; disruption in our information
technology, including as a result of cybercrime; the theft or
unauthorized use of personal information of our customers,
employees or other parties; fluctuations in currency exchange rates
or interest rates; the level of competition in the industry in
which we operate; global economic conditions and macro events,
including inflation; failures to comply with applicable laws and
regulations; climate change and other environmental impacts and our
ability to meet our customers’ and other stakeholders’ expectations
on environment, social and governance matters; the enactment of tax
reforms or other changes in tax laws and regulations; and other
risks and uncertainties, including those described in our filings
with the SEC.
Most of these factors are outside the Company’s control and are
difficult to predict. In light of the significant uncertainties in
these forward-looking statements, you should not regard these
statements as a representation or warranty by the Company and its
directors, officers or employees or any other person that the
Company will achieve its objectives and plans in any specified time
frame, or at all. The forward-looking statements in this
communication represent the views of the Company as of the date of
this communication. Subsequent events and developments may cause
that view to change. However, while the Company may elect to update
these forward-looking statements at some point in the future, the
Company disclaims any obligation to update or revise publicly
forward-looking statements. You should, therefore, not rely on
these forward-looking statements as representing the views of the
Company as of any date subsequent to the date of this
communication.
Non-IFRS financial
measures
The Group’s management monitors and evaluates operating and
financial performance using several non-IFRS financial measures
including: revenues on a constant currency basis (constant
currency) and revenues on an organic growth basis (organic or
organic growth). The Group’s management believes that these
non-IFRS financial measures provide useful and relevant information
regarding the Group’s financial performance and financial
condition, and improve the ability of management and investors to
assess and compare the financial performance and financial position
of the Group with those of other companies. They also provide
comparable measures that facilitate management’s ability to
identify operational trends, as well as make decisions regarding
future spending, resource allocations and other strategic and
operational decisions. While similar measures are widely used in
the industry in which the Group operates, the financial measures
that the Group uses may not be comparable to other similarly named
measures used by other companies nor are they intended to be
substitutes for measures of financial performance or financial
position as prepared in accordance with IFRS.
Revenues on a constant currency basis (constant
currency)
In addition to presenting our revenues on a current currency
basis, we also present certain revenue information on a constant
currency basis (constant currency), which excludes the effects of
foreign currency translation from our subsidiaries with functional
currencies different from the Euro.
We calculate constant currency revenues by applying the current
period average foreign currency exchange rates to translate prior
period revenues of foreign subsidiaries expressed in local
functional currencies different than the Euro.
We use revenues on a constant currency basis to analyze how our
underlying revenues have changed between periods independent of the
effects of foreign currency translation.
Revenues on a constant currency basis are not a substitute for
revenues on a current currency basis or any IFRS-related measures,
however we believe that revenues excluding the impact of foreign
currency translation provide additional useful information to
management and to investors in analyzing and evaluating our
revenues and operating performance.
Revenues on an organic growth basis (organic growth or
organic)
In addition to presenting our revenues on a current currency
basis, we also present certain revenue information on an organic
growth basis (organic growth or organic). Organic growth is
calculated as the change in revenues from period to period,
excluding the effects of (a) foreign exchange, (b) acquisitions and
disposals and (c) changes in license agreements where the Group
operates as a licensee.
In calculating organic growth, the following adjustments are
made to revenues:
(a) Foreign exchange – Current period average foreign currency
exchange rates are used to translate prior period revenues of
foreign subsidiaries expressed in local functional currencies
different than the Euro.
(b) Acquisitions and disposals – Revenues generated by
businesses and operations acquired in the current year are
excluded. Revenues generated by businesses and operations acquired
in the prior year are excluded from the current year for the same
period that corresponds to the pre-acquisition period in the prior
year. Additionally, where a business or operation was a customer
prior to an acquisition, the related pre-acquisition revenues are
excluded from the current and prior periods. Revenues generated by
businesses and operations disposed of in the current year or prior
year are excluded from both periods as applicable.
(c) Changes in license agreements where the Group operates as a
licensee – Revenues generated from license agreements where the
Group operates as a licensee that are new or terminated in the
current year or prior year are excluded from both periods (except
if the effects are already included in acquisitions and disposals).
Additionally, revenues generated from license agreements where the
Group operates as a licensee that experienced a structural change
in the scope or perimeter in the current year or prior year are
excluded from both periods, including changes to product
categories, distribution channels or geographies of the underlying
license agreements.
We believe the presentation of organic growth is useful to
better understand and analyze the underlying change in the Group’s
revenues from period to period on a consistent perimeter and
constant currency basis.
Revenues on an organic growth basis are not a substitute for
revenues on a current currency basis or any IFRS-related measures,
however we believe that revenues excluding the effects of (a)
foreign exchange, (b) acquisitions and disposals and (c) changes in
license agreements where the Group operates as a licensee provide
additional useful information to management and to investors in
analyzing and evaluating our revenues and operating
performance.
The tables below show a reconciliation of reported revenue
growth to constant currency, excluding the effects of foreign
exchange, and to organic growth, which excludes also acquisitions
and disposals and changes in license agreements where the Group
operates as a licensee, by segment, by brand and product line, by
distribution channel and by geography for the six months ended June
30, 2024 compared to the six months ended June 30, 2023 (H1 2024 vs
H1 2023) and for the three months ended June 30, 2024 compared to
the three months ended June 30, 2023 (Q2 2024 vs Q2 2023).
Segment
H1 2024 vs H1 2023
Revenues Growth
less
Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic Growth
Zegna
2.5%
(1.9%)
4.4%
0.7%
0.2%
3.5%
Thom Browne
(19.7%)
(1.2%)
(18.5%)
8.5%
—%
(27.0%)
Tom Ford Fashion
131.9%
(1.4%)
133.3%
128.6%
—%
4.7%
Total
6.3%
(1.8%)
8.1%
11.6%
(0.8%)
(2.7%)
Q2 2024 vs Q2 2023
Revenues Growth
less
Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic Growth
Zegna
3.3%
(1.1%)
4.4%
1.1%
0.6%
2.7%
Thom Browne
(7.2%)
(1.0%)
(6.2%)
11.6%
—%
(17.8%)
Tom Ford Fashion
30.4%
(1.0%)
31.4%
26.7%
—%
4.7%
Total
4.7%
(1.1%)
5.8%
6.7%
(0.5%)
(0.4%)
Brand and product line
H1 2024 vs H1 2023
Revenues Growth
less
Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic Growth
ZEGNA brand
4.6%
(2.1%)
6.7%
0.8%
—%
5.9%
Thom Browne
(19.4%)
(1.2%)
(18.2%)
8.5%
—%
(26.7%)
TOM FORD FASHION
132.0%
(1.3%)
133.3%
128.6%
—%
4.7%
Textile
(1.7%)
(1.0%)
(0.7%)
(0.1%)
—%
(0.6%)
Other
(60.4%)
(0.2%)
(60.2%)
(0.3%)
(27.0%)
(32.9%)
Total
6.3%
(1.8%)
8.1%
11.6%
(0.8%)
(2.7%)
Q2 2024 vs Q2 2023
Revenues Growth
less
Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic Growth
ZEGNA brand
5.1%
(1.2%)
6.3%
1.3%
—%
5.0%
Thom Browne
(7.3%)
(1.0%)
(6.3%)
11.6%
—%
(17.9%)
TOM FORD FASHION
30.4%
(1.0%)
31.4%
26.7%
—%
4.7%
Textile
(1.7%)
(1.2%)
(0.5%)
—%
—%
(0.5%)
Other
(45.2%)
—%
(45.2%)
—%
(22.2%)
(23.0%)
Total
4.7%
(1.1%)
5.8%
6.7%
(0.5%)
(0.4%)
Distribution channel
H1 2024 vs H1 2023
Revenues Growth
less
Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic Growth
Direct to
Consumer (DTC)
ZEGNA brand
4.5%
(2.3%)
6.8%
1.7%
—%
5.1%
Thom Browne
8.5%
(4.2%)
12.7%
25.5%
—%
(12.8%)
TOM FORD FASHION
167.8%
(2.9%)
170.7%
169.4%
—%
1.3%
Total Direct to Consumer (DTC)
14.8%
(2.7%)
17.5%
15.1%
—%
2.4%
Wholesale
branded
ZEGNA brand
5.2%
(0.7%)
5.9%
(4.5%)
—%
10.4%
Thom Browne
(38.1%)
—%
(38.1%)
(2.1%)
—%
(36.0%)
TOM FORD FASHION
89.4%
(0.1%)
89.5%
80.8%
—%
8.7%
Total Wholesale branded
(7.5%)
(0.2%)
(7.3%)
7.6%
—%
(14.9%)
Textile
(1.7%)
(1.0%)
(0.7%)
(0.1%)
—%
(0.6%)
Other
(60.4%)
(0.2%)
(60.2%)
(0.3%)
(27.0%)
(32.9%)
Total
6.3%
(1.8%)
8.1%
11.6%
(0.8%)
(2.7%)
Q2 2024 vs Q2 2023
Revenues Growth
less
Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic Growth
Direct to
Consumer (DTC)
ZEGNA brand
4.6%
(1.3%)
5.9%
1.9%
—%
4.0%
Thom Browne
12.9%
(2.9%)
15.8%
27.4%
—%
(11.6%)
TOM FORD FASHION
42.0%
(1.8%)
43.8%
42.5%
—%
1.3%
Total Direct to Consumer (DTC)
9.8%
(1.6%)
11.4%
9.7%
—%
1.7%
Wholesale
branded
ZEGNA brand
8.8%
(0.3%)
9.1%
(2.7%)
—%
11.8%
Thom Browne
(22.2%)
—%
(22.2%)
0.2%
—%
(22.4%)
TOM FORD FASHION
16.6%
(0.4%)
17.0%
8.3%
—%
8.7%
Total Wholesale branded
(3.7%)
(0.2%)
(3.5%)
1.5%
—%
(5.0%)
Textile
(1.7%)
(1.2%)
(0.5%)
—%
—%
(0.5%)
Other
(45.2%)
—%
(45.2%)
—%
(22.2%)
(23.0%)
Total
4.7%
(1.1%)
5.8%
6.7%
(0.5%)
(0.4%)
Geographic area
H1 2024 vs H1 2023
Revenues Growth
less
Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic Growth
EMEA (1)
4.3%
(0.1%)
4.4%
6.9%
(1.0%)
(1.5%)
Americas (2)
29.4%
0.1%
29.3%
24.4%
(1.8%)
6.7%
Greater China Region
(13.2%)
(2.9%)
(10.3%)
1.4%
—%
(11.7%)
Rest of APAC (3)
33.8%
(8.5%)
42.3%
37.8%
(0.9%)
5.4%
Other (4)
(5.7%)
—%
(5.7%)
11.8%
—%
(17.5%)
Total
6.3%
(1.8%)
8.1%
11.6%
(0.8%)
(2.7%)
_________________________________________
(1)
EMEA includes Europe, the Middle East and Africa.
(2)
Americas includes the United States of America, Canada, Mexico,
Brazil and other Central and South American countries.
(3)
APAC includes Japan, South Korea, Thailand, Malaysia, Vietnam,
Indonesia, Philippines, Australia, New Zealand, India and other
Southeast Asian countries.
(4)
Other revenues mainly include royalties.
Q2 2024 vs Q2 2023
Revenues Growth
less
Foreign exchange
Constant
Currency
less
Acquisitions and disposals
less
Changes in license agreements
where the Group operates as a licensee
Organic Growth
EMEA (1)
4.3%
0.3%
4.0%
2.0%
(0.8%)
2.8%
Americas (2)
12.0%
(0.2%)
12.2%
8.4%
(0.7%)
4.5%
Greater China Region
(10.8%)
(1.5%)
(9.3%)
0.8%
(0.1%)
(10.0%)
Rest of APAC (3)
38.8%
(9.7%)
48.5%
42.9%
(0.3%)
5.9%
Other (4)
(16.0%)
(0.1%)
(15.9%)
5.3%
—%
(21.2%)
Total
4.7%
(1.1%)
5.8%
6.7%
(0.5%)
(0.4%)
_________________________________________
(1)
EMEA includes Europe, the Middle East and Africa.
(2)
Americas includes the United States of America, Canada, Mexico,
Brazil and other Central and South American countries.
(3)
APAC includes Japan, South Korea, Thailand, Malaysia, Vietnam,
Indonesia, Philippines, Australia, New Zealand, India and other
Southeast Asian countries.
(4)
Other revenues mainly include royalties.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725369806/en/
Paola Durante, Chief of External Relations Alice Poggioli,
Investor Relations Director Clementina Tito, Head of Corporate
Communication ir@zegna.com / corporatepress@zegna.com
Ermenegildo Zegna NV (NYSE:ZGN)
Historical Stock Chart
From Nov 2024 to Dec 2024
Ermenegildo Zegna NV (NYSE:ZGN)
Historical Stock Chart
From Dec 2023 to Dec 2024
