MILAN – The Ermenegildo Zegna Group reported an 8% year-on-year decline in unaudited revenue for the third quarter, totaling €397 million (approximately $429 million), as challenges in the luxury goods sector impacted all its brands, including Thom Browne and Tom Ford Couture. Despite this downturn, revenue for the first nine months of the year increased by 2% to €1.4 million.
Thom Browne was the primary contributor to the profit decline, with revenues dropping 21.7% year-on-year to €220.4 million in the first three quarters. In the third quarter alone, the brand’s profit fell 27.4% to €53.5 million, a decrease attributed to a decision to streamline its wholesale operations.
The Zegna division, which encompasses revenues from the Zegna brand, textiles, and third-party brands, remained relatively stable in the first nine months but saw a slight decline of about 3% in the third quarter. Tom Ford Fashion generated €65.4 million in revenue during the third quarter, with a modest organic performance decline of 3.8% over the first nine months. The brand was consolidated in April 2023 following its acquisition by Estée Lauder Companies.
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