Italian fashion house Ermenegildo Zegna Group has reported unaudited revenues of €960.1 million (approximately $1.04 billion) for the first half of fiscal 2024 (H1 FY24). This represents a 6.3 per cent year-on-year (YoY) increase from €903.1 million in H1 FY23, although the organic revenue declined by 2.7 per cent.

In H1 FY24, the Zegna segment, which includes the Zegna brand, textile, and other revenues, recorded €660.5 million in revenues, up 2.5 per cent YoY from €644.3 million in H1 FY23, with an organic growth of 3.5 per cent. Within this segment, the textile revenues slightly decreased to €71.8 million from €73.1 million, marking a 1.7 per cent YoY decline and a 0.6 per cent organic decline.

The other revenues, primarily from third-party brands, saw a significant drop to €7 million from €17.7 million in H1 FY23, representing a 60.4 per cent YoY decline and a 32.9 per cent organic decline, the company said in a press release.

The Thom Browne segment faced a challenging first half of the fiscal year, with revenues amounting to €166.9 million, down from €208.0 million in H1 FY23, which is a 19.7 per cent YoY decline and a 27.0 per cent organic decline. The Thom Browne brand's performance mirrored the segment’s results, with H1 FY24 revenues at €166.7 million compared to €207.0 million in H1 FY23, reflecting a 19.4 per cent YoY decrease and a 26.7 per cent organic decrease.

In the second quarter of FY24, Ermenegildo Zegna Group's revenues reached €497 million, marking a 4.7 per cent YoY increase but a slight 0.4 per cent organic decline. The Zegna segment recorded Q2 revenues of €335.6 million, a 3.3 per cent YoY increase with a 2.7 per cent organic growth, driven by the solid performance of the Zegna brand. Conversely, the Thom Browne segment saw a decline in Q2 revenues by 7.2 per cent YoY and 17.8 per cent organic.

“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 recognise 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,” said Ermenegildo ‘Gildo’ Zegna, chairman and CEO.

Fibre2Fashion News Desk (DP)