Ermenegildo Zegna N.V. reported a profit of €90.9 million for fiscal year 2024, with a profit margin of 4.7%, compared to €135.7 million and a 7.1% margin in FY 2023. Adjusted EBIT for FY 2024 was €184.0 million, a 9.5% margin, which exceeded the earlier company expectation of around €175 million, but was down from €220.2 million and an 11.6% margin in FY 2023.
Gross profit reached €1,296.6 million, or 66.6% of revenues, up from 64.3% in FY 2023, primarily driven by the increased proportion of Direct-to-Consumer (DTC) revenues, which accounted for 78% of branded product revenues. Selling, general, and administrative (SG&A) expenses rose to 51.8% of revenues, reflecting investments in talent, the store network, and IT infrastructure.
Capital expenditure increased to €125.5 million in FY 2024, up from €77.9 million in FY 2023, mainly due to DTC channel expansion, IT infrastructure reinforcement, and initial investments in a new shoe production plant in Parma, Italy. Free Cash Flow for FY 2024 was €10.1 million, a decrease from €71.8 million in FY 2023.
The Board of Directors proposed a dividend distribution of €0.12 per ordinary share, totaling approximately €30 million, subject to shareholder approval at the 2025 annual general meeting. The Group also updated its mid-term targets for 2027, expecting revenues in the range of €2.2 billion to €2.4 billion and adjusted EBIT to reach €250 million to €300 million.
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