Adrien Duverger

Adrien Duverger of The Goldman Sachs Group, Inc. inquired about the performance of newer products, the potential for continued price mix increases, customer reception to these products, and the long-term outlook for closed-toe shoes' share of sales, currently at 38%. He also asked about the contribution of price mix to the 10% volume growth.

Answer

President of EMEA Nico Bouyakhf noted that product diversification is successful, with consumers rapidly adopting newer closed-toe silhouettes (non-Boston growing at same pace as Boston), and closed-toe share is expected to grow beyond 40%. He highlighted strong performance in new closed-toe shoes and boots at high price points. CFO Ivica Krolo clarified that growth is a mix of two-thirds units and one-third ASP, driven by a shift to higher-quality, premium products like closed-toe, alongside targeted like-for-like pricing.

Adrien Duverger of Goldman Sachs inquired about the progress of factory expansion plans against expectations and the anticipated evolution of supply over the next three years. He also asked for commentary on the confidence levels of wholesale partners.

Answer

CFO Ivica Krolo stated that the Pasewalk facility is on track, possibly ahead of schedule, for full absorption by 2026 and that the company is planning further investments to keep up with demand. David Kahan, President of Americas, added that wholesale partner appetite for the brand's products continues to escalate quarter after quarter due to strong performance and the brand's strategy of maintaining relative scarcity.

Adrien Duverger asked about the opportunity from price/mix with new products in the second half and if there are performance differences between high- and low-end products within categories.

Answer

EMEA President Nico Bouyakhf explained that there is a clear trend of consumers 'voting for higher price points' across categories. This is evidenced by an increasing share of leather products, the outperformance of higher-priced closed-toe shoes, and strong demand for premium embellishments on sandals, indicating a broad-based premiumization of the business.

Adrien Duverger asked for an update on the progress of manufacturing investments and factory expansion plans, and how the company expects its additional supply to evolve over the next few years.

Answer

CEO Oliver Reichert confirmed that all factory expansion projects, including the new facility and build-outs at existing sites, are progressing as planned. He reiterated that the significant margin pressure experienced from these investments in fiscal 2024 was a peak and is not expected to continue at the same level in fiscal 2025 and 2026.

Adrien Duverger asked for more information on the consumer environment across the U.S. and Europe, specifically concerning traffic, conversion rates, and spending appetite. He also questioned the status of wholesale channel rationalization and its expected impact into 2026, and sought details on Tom Ford Fashion's performance and brand integration efforts.

Answer

Paola Durante, Chief of External Relations, reported continued solid double-digit growth for U.S. and European customer clusters, driven by strong execution and collection acceptance rather than just traffic. Gianluca Tagliabue, Group CFO and COO, stated that most wholesale rationalization efforts were complete, with Thom Browne seeing a 35% decline this year, Zegna mid-teens, and Tom Ford Fashion around 10%. He expects a much more muted decline for wholesale in 2026. For Tom Ford Fashion, Paola Durante highlighted the positive reception of the first Haider Ackermann collection, new store openings, and investments in platform, people, and CRM as key drivers. Gianluca Tagliabue added that Q3's 16% DTC growth was partly comp-generated and benefited from wholesale conversions.

Adrien Duverger asked for more information on the consumer environment across regions, particularly the U.S. and Europe, regarding traffic, conversion rates, and spending appetite. He also questioned the status of wholesale channel rationalization and its expected impact into 2026, and sought comments on Tom Ford Fashion's performance and brand integration.

Answer

Paola Durante, Chief of External Relations, highlighted continued solid double-digit growth for U.S. and European customer clusters in Q3 2025, driven by strong execution and product acceptance rather than just traffic. Gianluca Tagliabue, Group CFO and COO, explained that most wholesale rationalization efforts are complete, with Thom Browne seeing a 35% decline this year, and further muted declines expected for 2026. For Tom Ford Fashion, he noted Q3's 16% DTC growth was driven by the successful Haider Ackermann collection, new store openings, and investments in CRM and talent, with plans for further U.S. expansion and focus on women's categories.

Adrien Duverger of Goldman Sachs asked for an assessment of the U.S. consumer environment, including traffic and conversion. He also requested an outlook for the wholesale channel in H2 for the Zegna and Tom Ford brands, and clarification on whether Tom Ford's Q2 growth was driven by like-for-like sales or new store space.

Answer

Chairperson & CEO Ermenegildo Zegna characterized the Americas as "very resilient," noting strong performance, successful price adjustments, and high client loyalty. COO and CFO Gianluca Ambrogio Tagliabue provided full-year wholesale guidance, expecting Zegna to be down mid-teens and Tom Ford down low-double-digits. He also confirmed that Tom Ford's Q2 acceleration was primarily driven by new store space.

Adrien Duverger from Goldman Sachs asked for an assessment of the U.S. consumer environment, including customer confidence, traffic, and conversion. He also requested commentary on wholesale trends for the second half of the year for the Zegna and Tom Ford brands, and clarification on whether Tom Ford's Q2 acceleration was driven by like-for-like growth or new store space.

Answer

Chairperson & CEO Ermenegildo Zegna described the Americas as 'very resilient,' noting strong performance, high loyalty, and successful price increases. He expressed continued optimism for the U.S., Canada, and Latin America for all brands. COO & CFO Gianluca Ambrogio Tagliabue provided the full-year wholesale outlook, expecting Zegna in the mid-teens negative range and Tom Ford in the low double-digit negative range. He confirmed that Tom Ford's Q2 acceleration was primarily driven by new store space.

Adrien Duverger of Goldman Sachs asked for an assessment of the U.S. consumer environment, guidance on wholesale trends for Zegna and Tom Ford for the second half, and clarification on whether Tom Ford's Q2 growth was driven by like-for-like sales or new store openings.

Answer

Chairperson and CEO Ermenegildo Zegna described the Americas as very resilient, with strong performance in personalized services and high loyalty. COO and CFO Gianluca Ambrogio Tagliabue guided for Zegna wholesale to be down mid-teens and Tom Ford wholesale to be down low-double-digits for the full year. He confirmed that Tom Ford's Q2 acceleration was primarily driven by new store space.