Question · H1 2025
Tom Nass, representing TD Cowen, asked about the Zegna segment's margin improvement, seeking insights into long-term opportunities and potential margin trends. He also inquired about the Thom Browne segment's margins, specifically regarding progress with wholesale rationalization and how to model long-term margins for that segment.
Answer
Gianluca Tagliabue, Group CFO and COO, addressed the Zegna segment margin, noting it reached over 14% and that while the short-term target for the year is 13%-14%, the long-term potential is to reach 15% as a first step, despite ongoing investments. For Thom Browne, Tagliabue acknowledged the significant impact of a 52% decline in wholesale in H1, projecting a reduced decline of around 20% for the full year. He emphasized the company's strategy to bring Thom Browne back to double-digit EBIT through a DTC-centric approach, merchandising, retail training, and leveraging the new CEO, Sam Lobban.