For the first nine months, Ermenegildo Zegna Group’s unaudited revenues increased by 1.7 per cent to US $ 1464.06 million. Revenues decreased 7.8 per cent to US $ 428.52 million in the third quarter.
“Despite the Group’s third-quarter revenue slowdown, I am comforted by the Zegna brand’s ongoing strong performance, which is supported by the DTC channel, as well as the calibre of expertise we have added to Thom Browne and Tom Ford Fashion as we strive to bolster both teams,” said Ermenegildo “Gildo” Zegna, chairman and CEO of the company, in response to the results.
Revenues for the Zegna sector increased by 0.8 per cent and 2 per cent organically to US $ 1018.61 million over the nine-month period. The third quarter’s revenues of US $ 306.21 million were down 2.9 per cent and down 1.3 per cent organically, with the Zegna brand’s increase being offset by the textile division’s poor performance.
Reduced third-party orders caused textile revenues to drop 16.3 per cent and 15.3 per cent organic in the third quarter, to US $ 109.48 million, down 6.5 per cent and 5.4 per cent organically. At US $ 12.19 million, other revenues—which primarily comprise sales for third-party brands—were down 51.6 per cent and 29.9 per cent organically.
The Thom Browne segment’s revenues for the nine-month period were US $ 237.72 million, which was a 21.7 per cent decrease and a 26.9 per cent organic decline. The business reported US $ 57.70 million for the third quarter, a decrease of 27.4 per cent or 26.8 per cent organically. Revenues for the Thom Browne brand came to US $ 237.40 million, a decrease of 21.4 and 26.7 per cent organically, respectively.
At US $ 230.71 million, the Tom Ford Fashion segment’s revenues represented a 3.8 per cent organic decline. The brand generated US $ 70.54 million in sales in the third quarter, with the DTC up 2.5 per cent organically due to strong performance in the US and EMEA DTC channels. Meanwhile, the wholesale channel reported a 29.6 per cent organic decline, mostly as a result of different delivery dates.