Revenue Challenges for Ermenegildo Zegna Group
The Ermenegildo Zegna Group starts its new fiscal year on a challenging note, reporting a slight decline in revenue for Q1 2025. The primary reasons behind this downturn include weak demand in China and losses stemming from Thom Browne. Nevertheless, there is a silver lining with growth in direct retail sales.
Despite the revenue dip, the company is focusing on strengthening its retail operations. This approach aims to capitalize on the growing demand for luxury products in direct markets. However, the road ahead remains uncertain, especially given the fluctuating economic conditions in China.
