Financial Data and Key Metrics Changes - The company reported full year 2025 revenues of EUR 1,917 million, a decrease of 1.5% year-over-year on a reported basis, but an increase of 1.1% on an organic basis [9] - Gross margin improved by 90 basis points to 67.5%, primarily driven by a shift in channel mix, with Direct-to-Consumer (DTC) sales reaching 82% of branded revenues compared to 78% the previous year [10] - Adjusted EBIT was EUR 163 million, which included EUR 10 million in provisions related to losses on trade receivables [9][10] - The company achieved a profit of EUR 109 million, up 20% from EUR 91 million the previous year [10] Business Line Data and Key Metrics Changes - The Zegna segment generated an adjusted EBIT of EUR 197 million with a margin of 14.4%, up from 13.9% the previous year [13] - The Thom Browne segment faced challenges, achieving only EUR 1 million in adjusted EBIT due to a reduction in revenues from wholesale streamlining [14] - The Tom Ford Fashion segment reported a loss of EUR 16 million in adjusted EBIT for the first half of the year, but showed improvement in the second half [14] Market Data and Key Metrics Changes - The Middle East region represents a mid-high single-digit share of the company's total revenues, with all stores in the area currently open and operating [18] - The company noted a cautious outlook for the Chinese market, expecting a flattish performance for the year despite some sequential improvement [27] Company Strategy and Development Direction - The company is focusing on enhancing its brand presence through high-profile fashion shows and collaborations, such as the Thom Browne sneaker launch with ASICS [4][5] - Zegna aims to build a brand that seamlessly integrates fashion, culture, and landscape, with plans for a spring/summer 2027 fashion show in Los Angeles [8] - The company is committed to long-term investments in talent, systems, and store network expansions, particularly for Thom Browne and Tom Ford [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the first quarter of 2026, noting a slight improvement in DTC trends compared to Q4 2025, despite uncertainties from the Middle East conflict [26] - The company remains focused on delivering its 2027 targets, acknowledging the increased uncertainty in the global economic outlook [19] Other Important Information - The effective tax rate decreased to 22% from 30% the previous year due to non-taxable income related to the remeasurement of put option liabilities [15] - The company plans to distribute a dividend of 12 cents per share, totaling approximately EUR 32 million [15] Q&A Session Summary Question: Update on top-line momentum and regional trends - Management noted that the year has started well, with trends slightly better than Q4 2025 in DTC, despite uncertainties from the Middle East conflict [26] Question: Zegna segment EBIT margin expectations - Management indicated that the Zegna segment's EBIT margin could improve, with a focus on long-term profitability rather than short-term results [29] Question: Impact of foreign exchange on profitability - Management acknowledged that currency fluctuations could create a headwind of around two points on profitability for 2026 [30] Question: Changes in consumer behavior due to recent events - Management reported no significant changes in consumer behavior outside the Middle East, where traffic has decreased [36] Question: Pricing environment and opportunities - Management confirmed ongoing low to mid-single-digit price increases and an upward evolution of the product mix [47] Question: Middle East market specifics - Management confirmed that the UAE is the largest market in the Middle East, with plans to continue store openings in the region [116]

Financial Data and Key Metrics Changes - The company reported full year 2025 revenues of EUR 1,917 million, a decrease of 1.5% year-over-year on a reported basis, but an increase of 1.1% on an organic basis [10] - Gross margin improved by 90 basis points to 67.5%, primarily driven by a shift in channel mix, with Direct-to-Consumer (DTC) sales reaching 82% of branded revenues compared to 78% the previous year [11] - Adjusted EBIT was EUR 163 million, which included EUR 10 million in provisions related to losses on trade receivables [10][11] - The company achieved a profit of EUR 109 million, up 20% from EUR 91 million the previous year [11][15] - The effective tax rate decreased to 22% from 30% due to non-taxable income related to the remeasurement of put option liabilities [15] Business Line Data and Key Metrics Changes - The Zegna segment generated an adjusted EBIT of EUR 197 million with a margin of 14.4%, up from 13.9% the previous year [13] - The Thom Browne segment was significantly impacted by a reduction in revenues, achieving only EUR 1 million in adjusted EBIT [14] - The Tom Ford Fashion segment reported a loss of EUR 16 million in adjusted EBIT for the year, with EUR 5 million in provisions related to Saks Global [14] Market Data and Key Metrics Changes - The Middle East region represents a mid-high single-digit share of the company's total revenues, with all stores in the area currently open and operating [18] - The company noted that the Americas and Europe remain resilient despite the conflict in the Middle East, with good growth expected [26] Company Strategy and Development Direction - The company is focusing on enhancing its brand presence through cultural initiatives, such as sponsoring the Italian Pavilion at the Venice Biennale [8] - Future plans include the launch of new collections and collaborations, such as the Thom Browne sneaker with ASICS, aimed at attracting new customers [5][6] - The company is committed to a long-term vision, emphasizing the importance of brand heritage and customer experience [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the current operating environment, noting slight improvements in DTC trends and performance in various regions, particularly in the Americas and Europe [25][26] - The company remains cautious about the Chinese market, expecting a flattish performance for the year despite some signs of improvement [25][26] - Management acknowledged the uncertainty in the global economic outlook due to geopolitical factors, particularly in the Middle East [19] Other Important Information - The company plans to increase capital expenditures (CapEx) to approximately 7% of revenues in 2026, primarily for the new shoe factory in Parma [16] - Trade working capital improved to EUR 408 million, representing 21.3% of revenues, down from 23.6% the previous year [17] Q&A Session Summary Question: Update on top-line momentum and regional trends - Management noted that the year has started well, with trends slightly better than Q4 2025 in DTC, despite uncertainties from the Middle East conflict [25][26] Question: Zegna segment EBIT margin expectations - Management indicated that the Zegna segment's EBIT margin could improve, with a focus on long-term profitability rather than short-term results [28] Question: Impact of foreign exchange on profitability - Management acknowledged a potential headwind of around 2 points from currency fluctuations affecting profitability [29] Question: Changes in consumer behavior and spending - Management reported no significant changes in consumer behavior outside the Middle East, where traffic has decreased [36] Question: Profitability improvements for Tom Ford and Thom Browne - Management expects profitability for both brands to improve in 2026, with Thom Browne aiming for a return to reasonable profitability [101]