Zegna beats analyst forecasts and is opening 15 stores — most of them in the US
Sales in the Americas rose 22%. In Europe, 1.6%. A fourteenfold gap that explains the group’s entire strategy for the year ahead.
Italian group Ermenegildo Zegna has reported its second quarter: organic revenue rose 11% to €517 million ($590 million). Analysts polled by Visible Alpha expected €493 million, so the house beat consensus by nearly 5%.
The engine is the Americas. Regional sales climbed 22% organically. Executive chairman Gildo Zegna credits demand for personalisation and made-to-measure services at the core brand, plus the effect of the show staged on Malibu Pier in Los Angeles.
“We plan to open 14 to 15 stores this year across Zegna, Thom Browne and Tom Ford, with more than half of them in the United States as we remain confident in the strength of the U.S. luxury market,” he said after the results. Some of those openings will be offset by a global store network optimisation programme.
Against 22% in America, Europe’s 1.6% looks like a standstill. The cause is not European shoppers but tourists: Asian travel flows have weakened, and that hits the whole sector, not just Zegna.
The Middle East stayed positive despite the US-Iran conflict. Greater China grew 8.6% in the quarter. The flagship Zegna brand continues to pull group sales upward.