Revenues at Zegna drop 5% in Q1, dragged by Thom Browne brand

Italian luxury group Ermenegildo Zegna ZGN posted on Tuesday a 5.3% drop in first quarter organic revenues - which exclude Tom Ford Fashion - mainly due to the Thom Browne brand's declining sales.

The Italian family-owned group said the 35% fall in Thom Browne's sales was driven by lower-than-expected revenues in the Greater China region and the streamlining of the company's overall wholesale business.

Including the Tom Ford Fashion, which Ermenegildo Zegna bought last year, revenues in the January-March period totalled 463 million euros ($493 million).

"Looking at the rest of the year, we have a clear and defined path in front of us. I am confident that we are taking the right actions to make our brands even stronger and to deliver on our medium-term ambitions", Chairman and CEO Gildo Zegna said in a statement.

($1 = 0.9386 euros)