Luxury Fashion Shockwaves: Zegna Revenue Plunges, Thom Browne Freefall—What's Happening?
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Brace yourself! The luxury fashion world is seeing some serious shake-ups! Ermenegildo Zegna Group just revealed an eye-popping 8% drop in revenue for the third quarter. That's right—€397 million (or about $429 million) just vanished!
Hold on to your hats because the Thom Browne brand led the rush downhill with a jaw-dropping 21.7% plunge for the first nine months of the year. And in the third quarter? A staggering 27.4% decline! Could this be due to their bold move to streamline their wholesale business?
Meanwhile, over at Zegna, things are holding steady with their segment performance. Even though it dropped 3% for the quarter, the brand is fighting back with a solid 2% overall growth for the first nine months. And don't even get us started on Tom Ford Fashion! Just months after being scooped up by Estée Lauder Companies, they're showing a 3.8% decline. Check out this scoop on their acquisition by Estée Lauder Companies here.
But wait, there’s more! The broader luxury sector is feeling the heat, with heavyweights like Ferragamo and LVMH also reporting declines. Kering and Hermès are on deck to divulge their numbers soon. Get ready for more drama!
DTC (Direct-to-Consumer) channels are Zegna's shining beacon, with a 10.2% rise in the first nine months! Even though Thom Browne faced some geographical hurdles, the emerging markets in Japan and Korea offered a ray of hope.
In the Tom Ford Fashion saga, a brand new creative director jumped on board in September, coinciding with a tidy 2% organic DTC bump. The European, Middle Eastern, and African markets are loving them, while the Asia-Pacific region isn't quite there yet.
But what's next? As we gear up for the end of 2024 and beyond, eyes are on the Greater China Region with anticipation and apprehension. Stay tuned as Zegna promises a fierce comeback with stronger brands, a sharper vision, and a rejuvenated team! Do they have what it takes to turn things around? Who knows, but one thing’s for sure: it’s going to be a wild ride!