Ermenegildo Zegna Group Sees DTC Growth Accelerate in Q3

Core Insights - The Ermenegildo Zegna Group's investment in its direct-to-consumer network has resulted in accelerated sales growth in Q3 2023, with organic revenues increasing by 3.6% to 398.2 million euros compared to the same period last year [1][3] Direct-to-Consumer Performance - The direct-to-consumer channel saw a significant organic growth of 9.1% in Q3, outperforming the 6% growth in the first half of the year [2] - Zegna brand's direct-to-consumer sales rose by 7.4% to 210.3 million euros, Thom Browne's sales increased by 10% to 38.2 million euros, and Tom Ford Fashion revenues surged by 16.4% to 48 million euros [2] Overall Revenue Trends - For the first nine months of 2023, organic revenues remained stable at 1.33 billion euros, while reported sales decreased by 2.3% [3] - The wholesale channel experienced a significant decline of 23.4% to 221.2 million euros [5] Regional Performance - The Americas region showed strong performance with a 10.4% increase in organic sales to 384.1 million euros, representing 29% of total revenues [14] - The Europe, Middle East, and Africa market saw a slight organic decrease of 0.6% to 480 million euros, but Q3 showed a 2.6% increase driven by the direct-to-consumer channel [12] - The Greater China region faced a 12.7% organic decrease to 300.5 million euros, although there was a sequential improvement in Q3 [15][16] Strategic Outlook - The CEO expressed confidence in the company's mid-term targets despite acknowledging ongoing challenges in consumer demand and currency fluctuations [4] - The company is focused on enhancing retail and CRM capabilities while building a stronger team to capitalize on early positive signs of growth [5][8]