Zegna’s adjusted operating profit falls 16% in 2024

Italian luxury group Ermenegildo Zegna said on Thursday its adjusted operating profit slid 16.4% to 184 million euros($198 million) last year, as the group pushed forward with investments despite a “challenging environment”.

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Adjusted earnings before interest and tax (EBIT) was, however, above analysts’ consensus, as the group earlier this year said it expected it to be around 175 million euros.

The group, whose sales fell 1.9% last year to 1.95 billion euros in part because of weakness in China, said it now expects revenues in the range of 2.2 billion to 2.4 billion euros in 2027.
Adjusted EBIT is expected to reach 250-300 million euros the same year.

“As we look further into 2025, we recognize the importance of maintaining a cautious approach while also remaining committed to delivering on our projects,” said Chairman and CEO Gildo Zegna in a statement.

“Especially in today’s environment, protecting our brands’ identity remains our first priority,” he added. Besides Zegna, the group also includes the Thom Browne and Tom Ford Fashion brands.