Italian luxury brand Ermenegildo Zegna reported a challenging second quarter for 2024, revealing flat organic revenue that highlights the complexities of today’s luxury market. For the April to June period, Zegna’s organic revenue remained steady at 497 million euros ($539 million), marking a slight decline of 0.4 percent compared to the previous year.

The performance of the Zegna brand, a significant contributor to the group’s sales, showed resilience in markets like the United States and Europe, accounting for growth. However, results were less favorable in Greater China, where sales dipped by a single-digit percentage. This aligns with trends noted in the previous quarter, pointing to ongoing struggles in this crucial region.

To tackle this stagnation, Zegna has refocused its strategy towards enhancing the long-term potential of its Thom Browne brand. Gildo Zegna, the company’s chairman and CEO, expressed confidence in their strategic direction, emphasizing the importance of cost control measures amid ongoing market challenges.

As the competitive landscape in luxury continues to evolve, brands like Zegna must adapt, balancing tradition with modern demands to safeguard their stature in the luxury sector.