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Ermenegildo Zegna NV is a globally recognized luxury fashion group headquartered in Italy, celebrated for its commitment to Italian craftsmanship, heritage, and innovation. Founded in 1910 in Trivero, Italy, by Ermenegildo Zegna, the company has grown from a producer of superior wool fabrics into a diversified luxury group with a strong presence in the global market. Its operations span the design, creation, and distribution of high-end menswear, womenswear, accessories, and luxury textiles.
Core Business Segments
Zegna operates across three primary business segments:
- Zegna Segment: Comprising Zegna-branded products, textiles, and third-party brands, this segment represents the core of the company's operations. It includes luxury menswear, accessories, and premium fabrics, which are highly sought after for their superior quality and design.
- Thom Browne Segment: Focused on the Thom Browne brand, this segment offers a distinct blend of contemporary and avant-garde fashion, catering to a global clientele seeking unique and innovative designs.
- Luxury Textile Laboratory Platform: This segment underscores Zegna's commitment to preserving Italian artisanal excellence by operating and maintaining heritage mills that produce some of the finest fabrics in the world. These textiles are used in-house and supplied to other luxury brands.
Market Position and Competitive Landscape
Ermenegildo Zegna NV is a key player in the global luxury goods industry, which is characterized by high competition, exclusivity, and a focus on premium quality. The group distinguishes itself through its vertically integrated business model, which ensures control over the entire production process—from sourcing raw materials to retail distribution. Its competitors include luxury conglomerates such as LVMH, Kering, and Richemont, but Zegna's emphasis on Italian heritage, sustainability, and craftsmanship sets it apart.
Global Reach and Retail Footprint
With a retail network spanning over 500 stores in 80 countries, including 297 directly operated stores, Zegna has established a robust global presence. The company leverages a mix of directly operated stores and wholesale partnerships to reach its clientele, ensuring a consistent and high-quality brand experience. Its flagship stores are strategically located in major luxury markets, reinforcing its position as a premium brand.
Commitment to Craftsmanship and Innovation
Zegna's dedication to quality is evident in its vertically integrated supply chain and its ownership of luxury textile mills. This approach not only ensures the highest standards of production but also supports the preservation of traditional Italian craftsmanship. The group continually invests in innovation, blending modern design with timeless elegance to meet the evolving tastes of its discerning customers.
Conclusion
Ermenegildo Zegna NV embodies the pinnacle of luxury fashion, seamlessly combining heritage, innovation, and sustainability. Its diversified operations across menswear, womenswear, accessories, and textiles position it as a unique and influential player in the luxury goods market. With a strong focus on craftsmanship and a global retail footprint, Zegna continues to uphold its legacy as a symbol of Italian excellence.
Ermenegildo Zegna N.V. (NYSE: ZGN) reported first quarter 2023 revenues of €428.3 million, reflecting a 13.4% year-over-year increase, and a robust 19.1% growth excluding Tom Ford Products. The Group's direct-to-consumer (DTC) revenues surged 24.9%, with strong performance across all regions, notably a 15.9% rise in Greater China. Zegna segment revenues grew by 12.6%, while Thom Browne recorded a 15.4% increase. The company expects to finalize its TOM FORD FASHION transaction with The Estée Lauder Companies in Q2 2023. A dividend of €0.10 per share is anticipated, amounting to approximately €25 million. Zegna aims for annual revenues exceeding €2 billion and an EBIT margin of at least 15% by 2025, contingent upon stable macroeconomic conditions.
Ermenegildo Zegna N.V. (NYSE:ZGN) reported a profit of €65.3 million and Adjusted EBIT of €157.7 million for the year ended December 31, 2022. Revenue for the year rose 15.5% year-over-year to €1,492.8 million, driven by a 42% increase excluding the COVID-19-impacted Greater China Region. Cash surplus stands at €122.2 million. The company anticipates double-digit growth for Q1 2023 and aims for €2 billion revenue and a 15% EBIT margin by 2025, not including TOM FORD FASHION. A proposed dividend of €0.10 per share marks an 11% rise year-over-year. Zegna’s strategy includes expanding its retail network and enhancing its brand identity while navigating potential global economic uncertainties.
Ermenegildo Zegna N.V. (NYSE:ZGN) reported preliminary FY 2022 revenues of €1,493 million, reflecting a 15.5% year-over-year increase. Excluding the Greater China Region (GCR), revenues soared 42% year-over-year. However, Q4 2022 revenues dipped slightly to €407 million, a 0.5% decline from the previous year, largely due to COVID-related restrictions in GCR. The Group announced a successful performance across markets, particularly in North America and EMEA, despite challenges. Key highlights include a new partnership with Norda Run and the completion of the acquisition of the TOM FORD fashion business, aiming to bolster their long-term strategy.
Ermenegildo Zegna N.V. (NYSE: ZGN) has signed a long-term licensing agreement with The Estée Lauder Companies for the TOM FORD fashion brand, contingent upon ELC's acquisition of TOM FORD. This 20-year license includes an automatic 10-year renewal under specific performance conditions. Zegna aims to enhance TOM FORD's luxury positioning while acquiring necessary operations to fulfill its licensing duties. The deal, expected to close in Q2 2023, will be financed with cash on hand and is expected to be accretive to earnings within the first year.
The Estée Lauder Companies has announced its acquisition of the TOM FORD brand for
Ermenegildo Zegna N.V. (NYSE: ZGN) reported 3Q 2022 revenues of €357 million, representing a 27.5% year-over-year increase. The year-to-date revenue reached €1.09 billion, growing 22.9% from last year. Both Zegna and Thom Browne segments exhibited strong performance in Europe, the U.S., and the Middle East, contributing to the growth. The Zegna segment produced €289 million in revenue, with Thom Browne generating €69 million, marking respective increases of 27.2% and 29.5%. The company anticipates mid-teens revenue growth for the full fiscal year amid ongoing macroeconomic challenges.
Ermenegildo Zegna N.V. (NYSE: ZGN) will release its third-quarter 2022 revenues on October 27, 2022, at 6:00 a.m. EST (12:00 p.m. CET). A conference call will follow at 8:00 a.m. ET (2:00 p.m. CET) to discuss the results and future guidance. The presentation will be accessible on the Company’s website during the call. Interested parties can join via local numbers provided, with an access code of 820223. An archived broadcast will be available on the website post-event.
Zegna Group, founded in 1910 in Italy, is a leader in luxury menswear.
Ermenegildo Zegna N.V. (ZGN) reported a revenue of €729.0 million for H1 2022, marking a 21% increase year-on-year. Adjusted EBIT rose to €82.7 million, with an adjusted EBIT margin of 11.3%. Despite a 34.8% decline in profit to €21.0 million, the company anticipates mid-teens revenue growth and a solid improvement in adjusted EBIT for the full year. The partnership with Real Madrid aims to enhance brand visibility. The Greater China Region experienced a 14% revenue decline due to COVID-19 restrictions, although June showed recovery signs.
Zegna and Real Madrid have announced a partnership making Zegna the Official Luxury Travelwear Partner for the football club. This collaboration, starting in the 2022/2023 season, will see players wearing exclusive Zegna outfits for various occasions. The partnership is built on shared values of excellence and sustainability, aiming to blend luxury leisurewear with modern style. The partnership will be celebrated with a special event in Madrid on September 30, showcasing a made-to-measure collection. Both brands, with rich histories, strive for impact and change in society.
Ermenegildo Zegna N.V. (NYSE: ZGN) will report its financial results for H1 2022 on August 26, 2022, at approximately 6:30 a.m. ET. A conference call will follow at 8:00 a.m. ET to discuss the results, trends, and guidance for 2022. Management will utilize a slide presentation during the call, available on their Investor Relations website. Interested parties can join by phone using the provided numbers. A broadcast archive will be available online post-call for twelve months.
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