Ermenegildo Zegna Group’s fourth-quarter revenue reached €589 million ($619 million), up 3 percent year-on-year, joining Richemont and Burberry in reporting surprisingly strong sales in the final months of 2024.
Like many luxury brands, Zegna’s revenue fell in the previous quarter, dragged down by weak demand in China.
The return to growth in the fourth quarter is driven by the strength of the Zegna brand, where revenue rose 8 percent.
The group fared particularly well in the US – revenue in the Americas shot up 15 percent from a year earlier. Direct-to-consumer channels also performed well, rising 9 percent.
Zegna’s performance adds to mounting evidence that the luxury sector may be pulling out of its downturn, following better-than-expected results from Richemont and Burberry earlier this month. However, analysts still expect sluggish full-year numbers at LVMH later this week.
Even as it reported its sales beat, Zegna was cautious in its outlook, particularly when it comes to China.
“We expect 2025 to play out differently across various geographies. While we have seen solid performance in the Americas and EMEA in the first weeks of January, we also believe that there will be ongoing volatility with respect to consumer demand in China,” said Group Chairman Gildo Zegna.
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Zegna Group’s Third Quarter Sales Fall 7 Percent
The Italian menswear group was heavily impacted by a 22% revenue drop in Greater China. Sales at the Zegna brand grew slightly while Thom Browne and Tom Ford posted double-digit declines.
