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Ermenegildo Zegna (ZGN) Earnings Call Presentation
2025-06-13 08:40
Strategy & Growth - Zegna focuses on recognizability and desirability to attract new consumers [6, 8] - The company aims to build iconic product families like Oasi Cashmere, Oasi Lino, and Triple Stitch [9, 10] - Zegna's strategy is working, with the top of the pyramid (spenders > €10k) growing the fastest, contributing to 80% of the growth until 2027 [24] - The company plans to increase the frequency of launches and leverage technology to drive conversion [27] - Zegna is doubling the reasons for customers to be contacted/shop, from 4 to 8 drops [28] Personalization & Customer Experience - Personalization is a key engine behind Zegna Friends, with 40% penetration of Zegna Friends [36, 37] - Personalization customers show >2.5x frequency compared to ready-to-wear only customers [37] - Zegna is evolving personalization beyond products and stores [38] - The company emphasizes clienteling, focusing on making guests feel unique [20] Middle East & Dubai - Dubai is the epicenter of luxury, with a strong global relevance, attracting >30 nationalities to shop at Zegna Dubai Mall every day and >100 each month [41, 43] - Zegna has grown significantly beyond Dubai, becoming a Middle East success story [46] Financial Targets - The Group confirms its 2027 targets and expects to increase its Adjusted EBIT margin by 200/300 basis points by 2027 [53, 55]