Italian fashion group Ermenegildo Zegna reported broadly flat second quarter organic revenue on Thursday as sales in the United States, Europe and Middle East helped offset a weaker quarter at its Thom Browne brand.

Organic revenue totalled 497 million euros ($539 million) for the April-June quarter, down 0.4 percent from a year earlier.

Revenue growth at its Zegna brand, which accounts for most of the group’s sales, were driven by ongoing robust growth in the US and EMEA region, but fell by a single digit percentage in the Greater China region, in line with the first quarter.

The group said it was focusing on strategic projects to unlock Thom Browne’s long-term potential.

“Looking ahead, I remain fully confident in the strategy we have put in place and the trajectory we are on ... We all recognise that 2024 will remain challenging, which is why we have been working on cost control initiatives across the group,” chairman and CEO Gildo Zegna said in a statement.

Earlier this week Tom Ford Fashion said that Peter Hawkings was stepping down as creative director of the brand and a successor would be announced in the near future.

Reporting by Elisa Anzolin; Editing by Jason Neely

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