Financial Data and Key Metrics Changes - In Q3 2025, the company reported revenues of EUR 398 million, representing a 4% organic growth, with nine months' revenues totaling EUR 1.3 billion [4][5] - The Direct-to-Consumer (DTC) channel showed a sequential acceleration, growing by 9% in the quarter, contributing significantly to overall revenue growth [4][8] - The company confirmed expectations for Zegna's wholesale performance to decline in the mid-teens by year-end due to increased control over distribution [10] Performance by Business Line - Zegna brand recorded revenues of EUR 249 million in Q3, up 6%, driven by strong DTC performance in EMEA and the Americas [4][5] - Thom Browne generated EUR 48 million in revenues, showing slight negative growth but with sequential improvement in both channels [4][5] - Tom Ford Fashion reported EUR 66 million in revenues, up 4% organic, driven by DTC channel success and positive reception of the fall-winter 2025 collection [5][12] - Textile revenues remained flat, while other revenues related to finished products grew by 12% [5] Performance by Market - EMEA accounted for 36% of total revenue in the first nine months, with a 3% growth in Q3, primarily from DTC channels [6] - The Americas, contributing 29% of nine months' revenue, recorded a 13% growth in Q3, led by strong DTC performance [7] - Greater China, which accounted for 23% of total revenues, saw a 7% decline in Q3, although there were signs of sequential improvement [7][9] - The rest of APAC represented 12% of nine months' revenues, with a 3% growth in Q3, driven by strong performances in Singapore and Korea [8] Company Strategy and Industry Competition - The company is focused on enhancing its DTC channel, which accounted for 82% of revenues in the first nine months, and aims to continue expanding its retail presence [8][12] - Management emphasized the importance of maintaining a disciplined approach to project implementation and brand priorities to navigate the current volatile environment [20] - The company is also investing in partnerships, such as a multi-year collaboration with Art Basel, to enhance brand visibility and customer engagement [14][18] Management's Comments on Operating Environment and Future Outlook - Management noted that currency fluctuations continue to pose challenges, with expected impacts of 3-4 points in Q3 and 4-5 points in Q4 on organic to reported results [19] - The consumer demand environment remains volatile, particularly in China, which is expected to stabilize into a new normal with balanced growth rates in the coming years [19][20] - Management expressed cautious optimism, focusing on key priorities for each brand and maintaining a solid base for future growth [20] Other Important Information - The company highlighted the successful launch of the "It's Not a Suit, It's a Zegna" campaign, celebrating its heritage and innovation [18] - The reopening of the fully renovated store in Dubai Mall was noted as a significant milestone for the brand [18] Q&A Session Summary Question: Current trading and expectations for Q4 - Management indicated that current trading trends in Q4 are not substantially different from Q3, with expectations for continued performance [24][25] Question: Performance in mainland China - Management reported that high-end spending is performing well, but there is still volatility in traffic and more affordable spending [25][26] Question: FX impact on margins - Management confirmed that while FX impacts exist, they have hedged well, and the focus will be on managing prices effectively [28][56] Question: Consumer environment across regions - Management noted solid growth in the U.S. and Europe, with a slight improvement in Greater China, driven by strong product acceptance [35][36] Question: Wholesale sector trends - Management stated that rationalization efforts in the wholesale channel are ongoing, with selective conversions continuing into next year [37][38] Question: Performance of Tom Ford - Management highlighted positive reception of the new collection and ongoing efforts to enhance CRM and store presence [40][41] Question: Impact of Haider's new collection - Management acknowledged the "wow effect" from the new collection but emphasized that it is part of a broader strategy to improve overall performance [95][96]