Gildo Zegna Outlines Strategic Focus for Zegna, Thom Browne, Tom Ford Fashion

Following a revenue increase in 2024, driven by Zegna's DTC channel, the chairman and CEO of the Ermenegildo Zegna Group highlighted the strong performance in the Americas.

Backstage at Zegna Men's fall 2025. Jonathan Daniel Pryce/WWD

MILAN — The Zegna brand posted a strong direct-to-consumer business last year, up 11 percent, with double-digit growth in the U.S. This appears to dovetail with recent signs of a potential rebound of the luxury market provided by third-quarter figures recently reported by Compagnie Financière Richemont and Burberry.

Do these results reflect a generalized traction in the industry? Not so fast, according to Gildo Zegna, chairman and chief executive officer of the Ermenegildo Zegna Group.

Responding to that question in a WWD interview, Zegna said “the market is rewarding those that have believed in a strategy, and pursued and executed it to perfection. Winners are those who understand they have to change their path or those that already did it and are applying [the strategy] around the world.”The executive, speaking after the group reported a 2.2 percent gain in 2024 revenues to 1.94 billion euros compared with 1.9 billion euros in 2023, beating analysts expectations, said it is key “to understand who you are,” recruit the right talent, set up the right organization “homogeneously and globally. It’s not easy, but those that have laid down the right strategy and invested in it will see an acceleration” in their business.

Gildo Zegna Courtesy of Zegna

Zegna underscored “there is still volatility” affecting China in the first half of the year, while the Americas are strong for the group, as is the Middle East, which is “flying,” and Europe “will continue to do well,” thanks to locals and tourists alike. But he admitted “it’s premature” to forecast “a leap” of the luxury industry, citing analysts predicting a low-single-digit growth for the year.

For his part, he believes the Zegna group “must accelerate. I was impressed by [Zegna brand’s] strong performance in November and December, which showed that when you have the right product, customers respond. Now we have to translate this into Thom Browne and Tom Ford. It’s a matter of execution, think slow and act fast, provided you have the right brand and the right strategy for that brand.”

To be sure, the Zegna brand contributed to lift 2024 group sales, as did Tom Ford Fashion, but Thom Browne has been going through a streamlining of its wholesale business that had an impact on the performance in the year.

By brand, in the 12 months ended Dec. 31, Zegna sales rose 4.9 percent to 1.16 billion euros, while Thom Browne revenues fell 16.8 percent to 314.7 million euros. Sales of Tom Ford Fashion climbed 33.5 percent to 314.5 million euros, but organically, they decreased 0.7 percent. The textile sector fell 8.5 percent to 138.1 million euros due to slower demand from fashion brands.

Zegna once again touted the strength of the group’s own manufacturing pipeline, built over the years. As speculation mounts about potential new M&A deals, including the sale of Versace, he was asked for a comment, responding that “the focus is on ourselves, the priority is to improve what we have in-house. We have enough on the table.  

“Beyond the numbers, I feel confident in our strategic projects pipeline,” he said.

He trumpeted Zegna’s fall 2025 collection designed by artistic director Alessandro Sartori, “acclaimed as one of the strongest ever for the brand with the presentation of our ultra-luxury Vellus Aureum, made by the finest wool, developed thanks to our know-how and unique filiera [pipeline]. This has reaffirmed Zegna’s position at the forefront of timeless luxury menswear.”

Thom Browne resort 2025 Courtesy of Thom Browne

The executive highlighted the strengthening of Thom Browne’s global merchandising and retail teams “with important additions in the U.S. and Europe and [we] are looking forward to seeing the brand’s show in February close the New York Fashion Week.”

Thom Browne will still be impacted at wholesale in the first quarter of the year, said Zegna with chief financial officer Gianluca Tagliabue during a conference call with analysts, as the changes in the DTC channel have not been completed yet.

He also remarked on the arrival of Haider Ackermann as the new creative director of Tom Ford Fashion, succeeding Peter Hawkings. The designer’s first show for the brand will bow at Paris Fashion Week in March. Ackermann is expected to “clearly connect with the brand’s legacy, offering consistent menswear and womenswear collections supported by strong accessories,” said Zegna. “I believe he is the right designer for the time, the brand and for us.”

Haider Ackermann Courtesy of Tom Ford

While during the call Zegna said it was important for all three brands to offer more commercial products within the luxury sphere, and stay away from “theatrical” experiments, he clarified during the interview that it is a must for the three designers behind each brand to “continue to dream and stage dreamy shows but those dreams must be connected to the stores, translated and brought into the stores” with the right products. “We have become luxury retailers,” he said.

Indeed, in 2024, group DTC revenues rose 9.9 percent to 1.39 billion euros, representing 78 percent of the total.

In the fourth quarter, DTC revenues were up 9.3 percent, driven by the Zegna brand. As of Dec. 31, Zegna had 281 directly operated stores. Monaco and Wuhan SKP opened in the fourth quarter.

In the fourth quarter, Thom Browne DTC revenues were up 3 percent to 58.9 million euros, boosted by ongoing double-digit growth in South Korea and Japan. As of Dec. 31, the brand had 116 DOS, with 10 openings in the last quarter, including Beijing Taikoo Li and some conversions in Canada from wholesale into retail.

In the fourth quarter, Tom Ford Fashion DTC revenues climbed 9.6 percent to 64.1 million euros, with openings in the quarter, incuding the Singapore flagship at Paragon mall and a store in Madrind, bringing the total to 64 DOS.

In 2024, group wholesale branded revenues fell 12.2 percent to 402.3 million euros and in the fourth quarter they were down 8.2 percent to 111.3 million euros.

In the fourth quarter, Zegna wholesale revenues were down 6.3 percent to 39 million euros, reflecting the selective approach to this channel.

Thom Browne wholesale revenues fell 13 percent to 35.8 million euros in the fourth quarter. The first quarter is expected to show a double-digit negative trend based on the brand’s order backlog and by some spring 2025 early deliveries in the quarter.

Tom Ford Fashion wholesale revenues were down 5.2 percent to 36.5 million euros, reflecting the conversion into retail of Harrods Man and Saks Woman and the strengthening of the DTC channel.

The executive also proudly underscored that Zegna sells only at full price. Tagliabue remarked on the fact that the top 5 percent of customers represent 40 percent of Zegna customers, driving the most growth. Called the “Zegna friends,” they spend above 50,000 euros a year, and this cluster is “definitely growing at a very solid double-digit pace, led by America and Europe.”  

In the year, group organic revenues were down 1.9 percent and at constant currency they rose 3.4 percent.

In 2024, the EMEA region reported 3.3 percent growth in sales to 680.2 million euros, representing 35 percent of the total.

Revenues in the Americas amounted to 524.8 million euros, up 15.4 percent and accounting for 27 percent of the total.

In the Greater China region, sales fell 14.5 percent to 509.4 million euros representing 26 percent of the total, reflecting the challenging consumer environment, in particular in mainland China.

In the rest of the Asia-Pacific area, sales rose 19.4 percent to 229.9 million euros, representing 12 percent of the total.

Zegna said he expected “good trends” in the U.S. for all three brands.

Asked about the changing department store landscape in the U.S., he said he believed Nordstrom’s privatization is “the right decision for the family, they are free to bring forward their long-term strategies.” As for the Saks Global merger with Neiman Marcus, he expects this to be “a strengthened group. We are their first menswear supplier and have great relationships with both, and they have now decided to add Thom Browne.”

He enthused about the reception of the American market to the Zegna brand. “We raised the level of excitement, and they loved the rebranding, the personalization, the uniqueness of designs and the selective distribution, and we are opening up to new customers.” To wit, the Villa Zegna project started in the U.S., in New York, he recalled saying that it will now be traveling but could not yet share the location of the next leg.

Tagliabue said the company is “not departing from the consensus of an operating profit of 175 million euros in 2024.”

https://wwd.com/business-news/financial/gildo-zegna-outlines-strategic-focus-zegna-thom-browne-tom-ford-fashion-1236882224/