Ermenegildo Zegna shares rise in premarket on solid DTC performance in Q1

Published 24/04/2025, 12:46
© REUTERS

Investing.com -- Ermenegildo Zegna reported first-quarter revenue of €458.8 million, a 0.9% decline year-over-year and a 1.2% drop on an organic basis from €463.2 million a year earlier.

The company’s U.S.-listed shares rose 2% in premarket trading Thursday following the results.  

The Zegna and Tom Ford Fashion lines posted a 4% year-over-year increase in the quarter. 

The company said growth in the Direct-to-Consumer channel remained strong, rising 5% year-over-year, with ZEGNA up 5%, Thom Browne up 4%, and Tom Ford Fashion up 10%.

"Despite the ongoing challenges in our sector, all our three brands have reported positive performance in the strategic Direct-to-Consumer channel," said Ermenegildo “Gildo” Zegna, Chairman and CEO of the company. 

"We are encouraged by these early positive results but also mindful of the recent geopolitical and economic uncertainties," he added.

Wholesale revenue fell 20% year-over-year. The company says the decline reflects a strategic shift at Thom Browne to streamline the channel and a broader move across the portfolio to convert select stores to Direct-to-Consumer.

Revenue in the Americas grew 9% year-over-year in the quarter.

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