Chiara Battistini

Chiara Battistini with J.P. Morgan inquired about the drivers behind the strong acceleration in the U.S. market, specifically distinguishing between new customer acquisition and returning customers. She also asked about any Q4 wholesale impact from Saks and provided guidance for wholesale performance across all three brands in 2026.

Answer

Gianluca Ambrogio Tagliabue, COO, noted that U.S. acceleration for Zegna is a mix of loyal and new clients, while Tom Ford and Thom Browne benefited from new store openings and collection acceptance. He guided that wholesale would not be a growth driver in 2026, expecting a high single-digit negative for the group, with Thom Browne seeing a low double-digit negative and Zegna a low single-digit negative.

Chiara Battistini questioned the drivers behind the strong acceleration in the U.S. market during Q4, seeking details on new customer acquisition versus returning customers, and the evolution of budget size, conversion, and average selling price (ASP). She also asked about any Q4 impact on wholesale numbers from Saks and provided early guidance for wholesale performance across the three brands in 2026.

Answer

Gianluca Ambrogio Tagliabue, COO of Ermenegildo Zegna, stated that U.S. acceleration for Zegna is broad-based, driven by loyal and new clients (Triple Stitch, Villa Zegna), while Tom Ford and Thom Browne benefited from new store openings and strong collection acceptance. He projected wholesale to not be a growth driver in 2026, expecting a high single-digit negative for the group, with Thom Browne seeing a low double-digit negative decline and Zegna a low negative.

Chiara Battistini asked about the price/mix and volume evolution for the Zegna brand, as well as the recruitment of new consumers versus returning customers. She also inquired if there was any reason not to expect further sequential acceleration for Tom Ford Fashion's DTC into year-end and next year, given ongoing initiatives. Finally, she sought the company's views on the market debate regarding new designers potentially reigniting demand for bolder fashion and its impact on understated brands.

Answer

Gianluca Tagliabue, Group CFO and COO, confirmed that price/mix is the primary driver of Zegna's comp growth, with good traction in recruiting and retaining new clients, particularly those spending above $25,000. For Tom Ford Fashion, Paola Durante, Chief of External Relations, noted that the 'wow effect' of a new collection is normal, and Q4 faces a denser comparison base. Gianluca Tagliabue added that solid double-digit growth is pleasing, driven by injecting Zegna's CRM logic, intensifying product drops, and expanding in the U.S. and Paris, with women's daywear, shoes, and handbags as key opportunities. On the fashion debate, Paola Durante emphasized that innovation must be coherent with a brand's DNA, creating something new that resonates with clients through quality, meaning, and brand values, rather than just changing everything.

Chiara Battistini asked about the price/mix and volume evolution for the Zegna brand, and the balance between recruiting new consumers versus retaining returning customers. She also questioned if there's any reason not to expect further sequential DTC acceleration for Tom Ford Fashion into year-end and 2026, and sought views on the market debate about new designers reigniting bolder fashion and potentially penalizing understated brands.

Answer

Gianluca Tagliabue, Group CFO and COO, confirmed that price/mix is the primary driver of Zegna's comp growth, noting good traction in retaining new clients and successful elevation of high-spending customer clusters. For Tom Ford Fashion, he expressed satisfaction with solid double-digit DTC growth, driven by CRM, product drops, and strategic store openings, acknowledging a tougher Q4 2024 comparison. Paola Durante, Chief of External Relations, commented on the fashion debate, emphasizing that Zegna's innovation remains coherent with its brand DNA, creating newness while respecting legacy, which resonates with clients seeking quality and value.

Chiara Battistini asked about the Gucci CEO transition, specifically if the appointment of a permanent CEO is contingent on a performance inflection. She also inquired about Gucci's elevation strategy and sought details on Japan's strong performance, including the tourism mix and potential for price increases.

Answer

Chairman and CEO François-Henri Pinault clarified that the priority is restoring Gucci's growth momentum before appointing a permanent CEO, noting the search is not urgent as a shortlist exists. CFO Jean-Marc Duplaix added that Gucci's elevation involves mix improvement and distribution cleanup, with H1 growth driven by AUR. Director of Financial Communications Claire Roblet stated tourists comprised about 30% of Japan's Q2 sales but did not comment on future pricing actions.

Chiara Battistini asked about Gucci's product pipeline and margin outlook for 2023 ahead of the new creative director's debut, and also inquired about recent business trends in China following its reopening.

Answer

François-Henri Pinault (Chairman and CEO) outlined Gucci's 2023 product pipeline, which includes major campaigns for iconic handbag lines and a cruise collection, emphasizing that the brand will not pause its efforts while awaiting Sabato de Sarno. Jean-Marc Duplaix (CFO) added that profitability is expected to resume a positive trajectory, driven by higher average unit retail (AUR) and volume growth from China. Both executives reported an encouraging start to the year in China, with a strong rebound during the Chinese New Year.

Chiara Battistini asked for quantification of Gucci's recent price increases, the outlook for wholesale rationalization at Bottega Veneta and Saint Laurent, and clarification on the timing of Gucci's margin improvement.

Answer

CFO Jean-Marc Duplaix detailed that Gucci implemented low-to-mid single-digit price increases in February and mid-to-high single-digit increases in June, but emphasized that product mix is the primary driver of higher average prices. He stated Gucci's wholesale rationalization is largely complete, while Bottega Veneta and Saint Laurent will see more impact in H2. He clarified that Gucci's margin should see improvement in H2 2022 due to operating leverage, not just starting in 2023.