MILAN –The Prada Group hit the 4 billion-euro-mark in the first nine months of the year, a performance that reflected 19 consecutive quarters of growth. In the period ended Sept. 30, revenues rose 6 percent to 4.07 billion euros compared with 3.83 billion euros in first nine months last year. At constant exchange rates, sales were up 9 percent. More from WWD “The consistency of our results, in a complex macroeconomic environment, confirms the strength of our brands and the validity of our strategy,” said ...

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]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported revenues of €398 million, representing a 4% organic growth, with nine months' revenues totaling €1.3 billion [4][5] - Direct-to-Consumer (DTC) channel revenues increased by 9% in the quarter, accounting for 82% of total revenues in the first nine months [8][9] Performance by Business Line - Zegna brand revenues reached €249 million in Q3, growing by 6%, driven by strong DTC performance in EMEA and the Americas [4][5] - Thom Browne reported revenues of €48 million in Q3, showing slight negative growth but sequential improvement [4] - Tom Ford Fashion achieved €66 million in revenues, up 4% organically, supported by the successful reception of the full-winter 2025 collection [5][12] - Textile revenues remained flat, while other revenues related to finished products grew by 12% [5] Geographic Performance Changes - 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 [6][7] - Greater China, which represented 23% of total revenues, saw a 7% decline in Q3, although there were signs of sequential improvement [7][9] - The rest of APAC accounted for 12% of nine months' revenues, with a 3% growth in Q3 [7] Company Strategy and Industry Competition - The company is focusing on increasing control over the distribution of iconic products and converting wholesale points of sale into retail concessions [10] - The management emphasized the importance of maintaining a disciplined approach to executing key priorities for each brand [20] - The company is cautiously optimistic about navigating the current volatile consumer environment, particularly in China [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that currency fluctuations continue to pose challenges, with expected impacts on margins in the upcoming quarters [19][28] - The consumer demand remains volatile, especially in China, but the company anticipates settling into a new normal with balanced growth rates in the coming years [19][20] - The management expressed confidence in the ongoing projects and the potential for growth despite the challenges [20] Other Important Information - The company highlighted the success of recent fashion shows and the positive reception of new collections, which are expected to contribute to future growth [15][18] - A multi-year partnership with Art Basel was announced, aiming to enhance brand visibility and customer engagement [13] Q&A Session Summary Question: Current trading and expectations for Q4 - Management indicated that current trading trends are in line with Q3, with no substantial changes observed so far [24][25] Question: Performance in mainland China - Management noted that high-end products are 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 effectively, mitigating some of the margin pressures [28][29] Question: Consumer environment across regions - Management reported solid growth in the U.S. and Europe, with slight improvements in Greater China, but emphasized the importance of strong product acceptance [36][37] Question: Wholesale sector trends - Management stated that rationalization efforts are ongoing, with expectations for continued selective conversions in the wholesale channel [38][39] Question: Performance of Tom Ford - Management highlighted positive reception of the new collection and ongoing efforts to enhance CRM and store performance [40][41] Question: Impact of new fashion designers - Management discussed the importance of innovation aligned with brand DNA, emphasizing that clients seek meaningful and resonant products [90][91]

Financial Performance Overview - For 9 months of 2025, the Group's revenues reached €1,326 million, a decrease of 2% year-on-year, with flat organic growth[15, 20] - In Q3 2025, consolidated revenues were €398 million, flat year-on-year, but with a 4% increase in organic growth[16, 20] Brand Performance in Q3 2025 - ZEGNA brand revenues grew organically by 6%, reaching €249 million, driven by strong DTC channel performance[16, 20] - Thom Browne revenues decreased organically by 5% to €48 million, showing improvement compared to the first half of the year due to DTC acceleration[16, 20] - TOM FORD FASHION revenues increased organically by 4% to €66 million, supported by double-digit growth in the DTC channel[16, 20] Revenue by Geographic Area in Q3 2025 - EMEA revenues grew organically by 3%[23, 25] - Americas revenues increased organically by 13%[23, 25] - Greater China Region revenues decreased organically by 7%, showing sequential improvement[23, 25] Revenue by Distribution Channel in Q3 2025 - DTC revenues reached €297 million, with a 9% organic growth rate[27, 29] - Wholesale branded revenues decreased organically by 15%[27, 29] Retail Store Network - As of September 30, 2025, the total number of DTC stores was 472, compared to 461 at December 31, 2024, and 453 at September 30, 2024[43] - The total number of Wholesale stores was 198 at September 30, 2025, compared to 203 at December 31, 2024, and 211 at September 30, 2024[43]

Core Insights - The Ermenegildo Zegna Group's investment in its direct-to-consumer network has resulted in accelerated sales growth in Q3 2023, with organic revenues increasing by 3.6% to 398.2 million euros compared to the same period last year [1][3] Direct-to-Consumer Performance - The direct-to-consumer channel saw a significant organic growth of 9.1% in Q3, outperforming the 6% growth in the first half of the year [2] - Zegna brand's direct-to-consumer sales rose by 7.4% to 210.3 million euros, Thom Browne's sales increased by 10% to 38.2 million euros, and Tom Ford Fashion revenues surged by 16.4% to 48 million euros [2] Overall Revenue Trends - For the first nine months of 2023, organic revenues remained stable at 1.33 billion euros, while reported sales decreased by 2.3% [3] - The wholesale channel experienced a significant decline of 23.4% to 221.2 million euros [5] Regional Performance - The Americas region showed strong performance with a 10.4% increase in organic sales to 384.1 million euros, representing 29% of total revenues [14] - The Europe, Middle East, and Africa market saw a slight organic decrease of 0.6% to 480 million euros, but Q3 showed a 2.6% increase driven by the direct-to-consumer channel [12] - The Greater China region faced a 12.7% organic decrease to 300.5 million euros, although there was a sequential improvement in Q3 [15][16] Strategic Outlook - The CEO expressed confidence in the company's mid-term targets despite acknowledging ongoing challenges in consumer demand and currency fluctuations [4] - The company is focused on enhancing retail and CRM capabilities while building a stronger team to capitalize on early positive signs of growth [5][8]

Core Viewpoint - Abercrombie & Fitch (NYSE: ANF) is experiencing a significant decline in stock value, down nearly 60% year-to-date, despite its global omnichannel model targeting Millennials and Gen Z through its Abercrombie and Hollister brands [1]. Company Overview - Abercrombie & Fitch operates through an omnichannel model, offering apparel and accessories globally [1]. - The company primarily targets Millennials and Gen Z consumers with its Abercrombie and Hollister brands [1]. Stock Performance - The stock of Abercrombie & Fitch has decreased by nearly 60% year-to-date, indicating a substantial decline in market performance [1].

Core Points - Fossil Group, Inc. announced the successful receipt of requisite consents for the UK Proceeding Amendments related to its 7.00% Senior Notes due 2026, allowing the company to proceed with an English law restructuring plan [1] - The company received 82.67% of valid tenders for the exchange offer but did not meet the minimum requirement of 90%, leading to an extension of the expiration date for the Exchange Offer, Consent Solicitation, and Rights Offering to November 10, 2025 [2][4] - The principal amount of Old Notes tendered includes $118,017,000 from New Money Participants (78.68%) and $5,993,125 from Non-New Money Participants (4.00%), totaling $124,010,125 [4] Company Actions - The company executed a supplemental indenture to the Old Notes Indenture, changing the governing law to the laws of England and Wales as part of the restructuring process [1] - The company has filed registration statements with the SEC in connection with the Exchange Offer, Consent Solicitation, and Rights Offering, which include a prospectus dated September 25, 2025 [4][5] Future Considerations - The company reserves the right to terminate, withdraw, amend, or further extend the Exchange Offer, Consent Solicitation, and Rights Offering independently at any time [2]

Group 1 - Levi's is restructuring its distribution network from primarily owned warehouses to a hybrid model that includes both owned and leased facilities operated by third-party logistics providers [3] - The company has closed an owned facility in Kentucky and established agreements with third-party logistics providers for new distribution centers in Canton, Mississippi, and Groveport, Ohio, with the Mississippi site replacing an owned facility [4] - The transformation aims to enhance service to direct-to-consumer channels, which account for over 40% of the U.S. market, and is expected to reduce distribution expenses and costs per unit [5] Group 2 - Levi Strauss & Co. plans to phase out the parallel operation of owned and leased distribution centers by early 2026, as stated by the EVP and Chief Financial and Growth Officer during the Q3 earnings call [8] - The company reported a 19.5% year-over-year increase in distribution costs for the quarter, attributed to charges from overlapping facilities and reclassification of certain e-commerce costs [8] - The company anticipates that costs will decline over time as the transition is completed, leading to greater efficiency and flexibility in serving both direct-to-consumer and wholesale channels [8]

Core Insights - Sales at the fashion house exceeded expectations in the latest quarter, indicating a positive trend for the parent group's revenue and enhancing optimism for a sustained turnaround [1] Group 1 - The fashion house's recent sales performance has contributed to an increase in revenue for the parent group [1] - The results have raised hopes for a continued recovery in the company's financial performance [1]

Core Viewpoint - Teenie Weenie, despite a successful promotional event featuring celebrity Zhao Lusi, is facing declining financial performance, with a notable drop in revenue and profit over recent years [6][8][11]. Financial Performance - In the first half of 2025, Teenie Weenie's revenue decreased by 3.78% to 15.6 billion yuan, continuing a downward trend from 2024, which saw a 0.84% decline [8][11]. - The brand's net profit fell by 23.03% in the same period, indicating significant financial challenges [8]. - Over the past four years, Teenie Weenie's revenue has gone through various phases, including a peak of 31.8 billion yuan in 2021, followed by a decline to 30 billion yuan in 2022 and stagnation at 34.8 billion yuan in 2024 [11][12]. Product Line and Market Strategy - Teenie Weenie has shifted its sales focus from offline to online channels, with online revenue growing from 25% in 2020 to 40% in 2024 [16]. - The brand has expanded its product offerings to include a wide range of categories, moving from a focus on "preppy" styles to include outdoor apparel and other items [16][22]. - The introduction of high-end products, such as GORE-TEX jackets priced at 2,790 yuan, reflects a strategy to capture a broader market segment [18]. Brand Positioning and Consumer Perception - The brand's shift towards a diverse product range has led to confusion regarding its identity, moving away from its original "preppy" aesthetic [30][32]. - Consumer feedback indicates dissatisfaction with product quality and brand management, with reports of poor durability and lack of customer service [32][34]. - The brand's attempt to monetize through IP licensing has generated revenue but risks diluting its luxury image, as evidenced by the introduction of lower-priced items [24][38]. Sales and Marketing Expenses - The sales expenses for the company reached 10.2 billion yuan in the first half of 2025, with a cost-to-revenue ratio exceeding 51%, indicating high marketing costs [39]. - Advertising expenditures have significantly increased, with costs rising from 83 million yuan in 2020 to 217 million yuan in 2024, reflecting the challenges of maintaining profitability in a competitive online market [39].