Ermenegildo Zegna N.V. (NYSE:ZGN) Q1 2025 Earnings Conference Call April 24, 2025 8:00 AM ET Company Participants Paola Durante - Chief of External Relations Gianluca Tagliabue - COO & CFO Conference Call Participants Oliver Chen - TD Cowen Chris Huang - UBS Anthony Charchafji - BNP Paribas Natasha Banoori - Morgan Stanley Daria Nasledysheva - Bank of America Merrill Lynch Louise Singlehurst - Goldman Sachs Group Operator Good afternoon. Good morning, everyone. Thank you for joining the Ermenegildo Zegna Gr ...

Ermenegildo Zegna (ZGN) Q1 2025 Earnings Call April 24, 2025 08:00 AM ET Company Participants Paolo Zegna - Non Executive DirectorGianluca Ambrogio Tagliabue - COO and CFOOliver Chen - Managing Director - Retail, Luxury, New Platforms Sector HeadAnthony Charchafji - Equity Research Associate - Luxury GoodsDaria Nasledysheva - Vice President Equity ResearchLouise Singlehurst - Managing DirectorAlice Poggioli - Investor Relations Director Conference Call Participants Chris Huang - AnalystNatasha Bonnet Banoor ...

Ermenegildo Zegna (ZGN) Q1 2025 Earnings Call April 24, 2025 08:00 AM ET Company Participants Paolo Zegna - Non Executive DirectorGianluca Ambrogio Tagliabue - COO and CFOOliver Chen - Managing Director - Retail, Luxury, New Platforms Sector HeadAnthony Charchafji - Equity Research Associate - Luxury GoodsDaria Nasledysheva - Vice President Equity ResearchLouise Singlehurst - Managing DirectorAlice Poggioli - Investor Relations Director Conference Call Participants Chris Huang - AnalystNatasha Bonnet Banoor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

Ermenegildo Zegna (ZGN) Q4 2024 Earnings Call March 27, 2025 09:00 AM ET Company Participants Ermenegildo Zegna - Chairman and CEOGianluca Ambrogio Tagliabue - COO and CFOPaola Durante - Chief of External RelationsAdrien Duverger - Equity Research AssociateOliver Chen - Managing Director - Retail, Luxury, New Platforms Sector HeadMelania Grippo - Equity Research - European Luxury Goods Conference Call Participants Chris Huang - Analyst Operator Good afternoon and good morning, everyone. Thank you for joinin ...

Ermenegildo Zegna (ZGN) Q4 2024 Earnings Call March 27, 2025 09:00 AM ET Company Participants Ermenegildo Zegna - Chairman and CEOGianluca Ambrogio Tagliabue - COO and CFOPaola Durante - Chief of External RelationsAdrien Duverger - Equity Research AssociateOliver Chen - Managing Director - Retail, Luxury, New Platforms Sector HeadMelania Grippo - Equity Research - European Luxury Goods Conference Call Participants Chris Huang - Analyst Operator Good afternoon and good morning, everyone. Thank you for joinin ...

Financial Data and Key Metrics Changes - In Q4 2024, revenue grew by 3% both organically and reported, driven by the Zegna brand's 7% organic growth and an 8% organic growth in the consumer channel at the group level [4][5] - The Zegna segment recorded a 4% organic growth, while TOM FORD FASHION also achieved a 4% revenue growth [26][27] - The overall performance in Q4 showed a sequential improvement compared to previous quarters, particularly in the Americas, which saw a 15% organic growth [30][31] Business Line Data and Key Metrics Changes - The Zegna brand's performance was strong, particularly in luxury leisurewear and shoes, contributing significantly to growth [27][129] - Thom Browne's revenue showed improvements, although it is still transitioning to a DTC-driven model, with a noted 4% organic growth in DTC [14][28] - TOM FORD FASHION reported a 9% organic growth in the DTC channel, indicating a positive trend driven by strong commercial organization efforts [40][41] Market Data and Key Metrics Changes - The Americas accounted for 27% of full-year revenues, with a strong sequential acceleration in Q4, particularly in the U.S. market [29][30] - EMEA recorded a 5% organic growth in Q4, driven by double-digit growth in Zegna and TOM FORD FASHION [29] - Greater China region revenues declined by 11% in Q4, although this was an improvement from a 22% decline in Q3 [31][32] Company Strategy and Development Direction - The company is focusing on long-term strategies, including enhancing CRM and personalization efforts, particularly for the Zegna brand [6][8] - There is a clear emphasis on integrating corporate functions across brands to drive efficiency and cohesion [7][8] - The company aims to strengthen its community of brands and consolidate Zegna's leadership in timeless luxury [12][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing uncertainties in the sector but expressed optimism about the positive trends in the U.S. and Middle East markets [21][22] - The company is cautious about the Chinese market, anticipating volatility in 2025 but noting some positive signs in early 2025 [106][112] - Management emphasized the importance of a personalized approach to customer engagement and the need to adapt to changing market dynamics [109][110] Other Important Information - The company is investing in its integrated Italian supply chain, which provides a competitive advantage in terms of excellence and innovation [18][19] - A new shoe factory is planned to be operational by 2026, further enhancing production capabilities [18] Q&A Session Summary Question: Thoughts on TOM FORD's performance in 2025 - Management expects 2025 to be a transition year, focusing on brand legacy and product consistency across collections [48][51] Question: Performance of the top 5% clientele for Zegna - The top 5% of clients contribute 40% of Zegna's revenues, with this segment showing solid double-digit growth, particularly in the Americas [53][54] Question: Growth prospects for the Americas and product assortment - Management is optimistic about continued growth in the U.S. market, driven by strong merchandising and customer engagement strategies [76][78] Question: Insights on the performance of the Triple Stitch franchise - The Triple Stitch family is expected to account for around 15% of sales in 2024, with a focus on exclusivity and controlled distribution [134][145] Question: Pricing strategy and AUR trends - Average unit rates have increased due to a focus on higher-end products, with low-single-digit price increases implemented to offset inflation [140][142]

FY/Q4 2024 PRELIMINARY REVENUES Unaudited figures January 27, 2025 1 Disclaimer Non-IFRS Financial Measures The Group's management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: revenues on a constant currency basis (constant currency) and revenues on an organic growth basis (organic growth or organic). The Group's management believes that these non-IFRS financial measures provide useful and relevant information regarding the Group's financial ...

Financial Data and Key Metrics Changes - For the first nine months, revenues reached €1,357 million, up 2% year-on-year on a reported basis, with a 3% increase in constant currency, but a 4% decline in organic terms [10] - In Q3, the Group reported revenues of €397 million, down 8% year-on-year on a reported basis, with a 6% decline in constant currency and a 7% decrease in organic terms [11][12] - The Zegna segment contributed €944 million, with the ZEGNA brand up 5% organically, while Thom Browne and Tom Ford Fashion segments reported revenues of €220 million and €214 million respectively [11] Business Line Data and Key Metrics Changes - The ZEGNA brand recorded a 3% organic growth in Q3, driven by a 4% increase in the DTC channel, with strong performance in EMEA, Americas, and Japan [12][18] - Thom Browne's revenues in Q3 were €53 million, down 27% organically, primarily due to the decision to streamline the wholesale business and challenges in Greater China [13] - Tom Ford Fashion reported Q3 revenues of €65 million, down 11% organically, with a positive DTC channel growth of 3% [14][21] Market Data and Key Metrics Changes - The Greater China region saw a revenue decline of 22% in Q3, attributed to subdued consumer confidence [16] - EMEA recorded a -2% organic growth in Q3, with positive performance from the ZEGNA brand offset by declines in wholesale for Thom Browne and Tom Ford Fashion [15] - The Americas experienced a -3% organic growth in Q3, with DTC channel performing well but negatively impacted by wholesale performance [15] Company Strategy and Development Direction - The company is focusing on long-term brand reinforcement despite short-term impacts on results, including streamlining Thom Browne's wholesale business and investing in marketing and retail talent [8][9] - The appointment of Haider Ackermann as Creative Director for Tom Ford Fashion aims to enhance the brand's potential, with new collections expected in mid-2025 [8] - The strategy includes a shift towards DTC channels and a focus on high-quality customer interactions, particularly in China [27][50] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the Chinese market, indicating that challenges may persist into early 2025, but noted positive signs such as increasing average selling prices and attracting younger customers [25][26] - The company anticipates a stronger position in 2025, with careful planning and investment in brands and talent [9] - Management acknowledged the volatility in the current environment but remains committed to executing their strategy effectively [33][34] Other Important Information - The company opened several new stores in Q3, including locations in New York and Beijing, and plans to continue expanding its retail footprint [3][4][18] - The DTC channel grew 1% organically in Q3, with significant contributions from ZEGNA and Tom Ford Fashion, while wholesale performance declined by 24% [17] Q&A Session Summary Question: Insights on China consumer confidence and future expectations - Management indicated that consumer confidence in China remains subdued, with expectations of continued challenges into early 2025, but noted positive trends in younger customer engagement and average selling prices [25][26] Question: Current trading in October and margin expectations - October performance has been slightly better than Q3, but management remains cautious due to ongoing volatility [33] Question: Confirmation of Thom Browne wholesale guidance - Management confirmed a guidance of -35% for Thom Browne wholesale for the full year, indicating a decline in Q4 but at a lower extent than year-to-date metrics [34] Question: Performance of ZEGNA brand DTC and geographical insights - Positive growth was noted from European and American customers, while Greater China residents showed a mid-teens negative performance, primarily driven by Mainland China [38][39] Question: Evolution of retail store footprint in China - Management is focused on increasing store productivity and enhancing customer engagement, with plans for further store openings and consolidations as needed [49][50] Question: Pricing strategy across brands - The company plans moderate price increases to offset cost inflation and currency fluctuations, without a structural repositioning of prices [54][55]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|--------------------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q3/9M 2024 REVENUES Unaudited figures October 22, 2024 | | | | | | 1 Disclaimer Non-IFRS Financial Measures The Group's management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: re ...