Daria Nasledysheva

Daria Nasledysheva from Bank of America asked if factors beyond macro trends are limiting Zegna brand's performance in China, about the store base development plans for 2026 across all three brands and the CapEx cycle, and for further clarification on the expected flattish EBIT margin development for 2026, specifically regarding gross margin versus OPEX leverage.

Answer

Gianluca Ambrogio Tagliabue, COO, stated that China's performance gap is largely macro-related, with the group's network shrinking also being a factor. He outlined store openings for Tom Ford (US, Paris), stability for Thom Browne, and specific Zegna openings (US, Shenzhen Bay, Middle East). He reiterated that the 2026 EBIT margin is expected to move sideways with possible improvement, without detailing gross margin versus OPEX.

Daria Nasledysheva asked if factors beyond macroeconomics are limiting Zegna brand's performance in China compared to the rest of the world for 2026 and the medium term. She also inquired about the store base development plans for 2026 across all three brands, the CapEx cycle, and the expected EBIT margin development for the next year, specifically regarding the balance between gross margin and OPEX leverage/de-leverage given the 'flattish' outlook.

Answer

Gianluca Ambrogio Tagliabue, COO of Ermenegildo Zegna, stated that China's trends are similar to competitors and are more macro-related, with the shrinking retail network being a specific factor. For 2026 store development, Tom Ford plans openings in the U.S. and Paris, Thom Browne expects stability, and Zegna will open a few stores in the U.S., Shenzhen Bay, and the Middle East. He reiterated that EBIT margins are expected to move sideways with possible improvement, but declined to detail the gross margin vs. OpEx balance, noting the top-line impact from FX.

Daria Nasledysheva asked for a quantification of Haider Ackermann's new collection impact on Tom Ford Fashion's acceleration and the expected pace of product rollout for next year. She also inquired about the company's thoughts on the full-year EBIT consensus.

Answer

Paola Durante, Chief of External Relations, explained that quantifying Haider Ackermann's specific impact on Tom Ford Fashion's acceleration is difficult, as it's a mix of the 'wow effect,' improved personnel, CRM tools, better collections (including pre-show), merchandising, and marketing visibility. Gianluca Tagliabue, Group CFO and COO, added that the show collection impacted part of the quarter, but other factors were also at play. He stated that the full-year EBIT consensus looks 'pretty reasonable,' subject to the performance of the final two months. Regarding product rollout, Gianluca Tagliabue mentioned the first Spring collection drop in mid-November, followed by a second in January, with Paola Durante clarifying that the 'pre-show' collections represent the most significant part of the season's offerings.

Daria Nasledysheva asked to quantify the impact of Haider Ackermann's new collection on Tom Ford Fashion's acceleration and the pace of new product rollout for 2026 as a percentage of revenues. She also inquired about the company's thoughts on the full-year EBIT consensus.

Answer

Paola Durante, Chief of External Relations, and Gianluca Tagliabue, Group CFO and COO, explained that quantifying the specific impact of Haider Ackermann's collection is difficult as it's a mix of factors including improved talent, CRM, merchandising, and marketing. They noted the first Spring 2026 collection drop is expected mid-November, with a second in January, and that show collections represent a smaller portion of the overall seasonal offering. Gianluca Tagliabue stated that the full-year EBIT consensus appears reasonable, subject to performance in the remaining two months.

Asked for clarification on the softness in Chinese consumer spending, the allocation of marketing expenses across brands, and the outlook for marketing pushes in the coming months.

Answer

The softness is concentrated in Mainland China, while Hong Kong and Macau are seeing a strong comeback. Chinese tourist spending in Europe is still only about 50% of 2019 levels. Marketing spend is increasing for both Zegna and Thom Browne. Zegna's marketing is focused on high-end customer events, while Thom Browne's is driven by its 20th-anniversary celebrations and global events to boost brand awareness.