Financial Data and Key Metrics Changes - The Ermenegildo Zegna Group reported total revenues of EUR 1.917 billion for FY 2025, reflecting a 1% increase compared to the previous year, with Q4 revenues reaching EUR 591 million, up 4.6% organically [13][16] - The Zegna brand specifically achieved revenues of EUR 1.2 billion, with Q4 revenues of EUR 362 million, representing a 7% growth driven by the DTC channel [3][15] - Thom Browne reported Q4 revenues of EUR 91 million, up 1.4% organically, while Tom Ford Fashion reached EUR 98 million, up 1.5% [14][15] Business Line Data and Key Metrics Changes - The DTC channel for the group grew by 10% in Q4, accounting for 82% of the group's branded revenues for FY 2025 [18][19] - Zegna DTC revenues grew 10% in Q4, with the Americas and EMEA regions showing strong performance, while Greater China experienced a revenue decrease of 10% in Q4 [16][17] - Thom Browne's DTC revenues increased by 11% in Q4, driven by new store openings, while the wholesale channel reported a decline of 14% [20][55] Market Data and Key Metrics Changes - Europe, the Middle East, and Africa accounted for 36% of total revenues, with a 7% increase in Q4, while the Americas represented 30% of revenues, showing a 16% increase in Q4 [16][17] - The Greater China region's contribution to total revenues decreased to 23%, with a negative trend in Q4 attributed to the wholesale channel [17] - The rest of Asia Pacific reported a 5% growth in Q4, driven by improvements in Japan and Korea [17] Company Strategy and Development Direction - The company aims to strengthen its DTC channel and reduce reliance on wholesale, with a focus on elevating product offerings and enhancing customer experiences [9][10] - The leadership transition, with Gianluca Tagliabue as Group CEO, is expected to drive integration and accelerate ambitions across brands [12][3] - The company plans to continue expanding its retail presence, particularly for Tom Ford, with new store openings in key markets [83][100] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a "new normal" characterized by uncertainty and volatility, emphasizing the need for agility and coherence in strategy [10] - The outlook for 2026 includes expectations of continued growth in the Americas, while caution is advised regarding the Greater China market due to its volatility [16][74] - The company remains optimistic about its financial strength to absorb challenges, including the recent Chapter 11 bankruptcy filing of Saks Global [23][46] Other Important Information - The company is closely monitoring the situation with Saks Global, which has a low single-digit revenue exposure to the group [46][23] - The introduction of new products, such as perfumes for the Zegna brand, is expected to contribute positively to growth in 2026 [36][38] Q&A Session Summary Question: What is the growth rate of Zegna brand DTC excluding China? - Management confirmed that the growth rate is around high teens percentage year-over-year, excluding China [25][28] Question: What FX impact is expected for 2026? - A headwind of approximately 2-3% is anticipated due to currency fluctuations, with some mitigation through hedging [28][29] Question: What are the key drivers for Zegna retail productivity? - Key drivers include a focus on price mix and elevated offerings, with a target of high single-digit improvement per year [36][41] Question: What is the exposure to Saks Global? - The overall exposure is in the low single-digit area, and the company is monitoring the situation closely [46][23] Question: What are the expectations for wholesale performance in 2026? - Wholesale is expected to decline, with high single-digit negative growth anticipated for the group, particularly for Thom Browne [55][56] Question: How is the U.S. market performing? - The U.S. market continues to show strong performance, with good traction across all brands, and new store openings are planned [75][76]

Financial Data and Key Metrics Changes - The Ermenegildo Zegna Group reported total revenues of EUR 1.917 billion for FY 2025, representing a 1% increase compared to the previous year, with Q4 revenues reaching EUR 591 million, up 4.6% organically [13][16] - The Zegna brand achieved revenues of EUR 1.2 billion, with Q4 revenues of EUR 362 million, reflecting a 7% growth driven by the DTC channel [3][15] - Thom Browne reported Q4 revenues of EUR 91 million, a 1.4% organic increase, while Tom Ford Fashion reached EUR 98 million, up 1.5% [14][15] Business Line Data and Key Metrics Changes - The DTC channel for the group grew by 10% in Q4, accounting for 82% of the group's branded revenues for FY 2025 [18][19] - Zegna DTC revenues grew 10% in Q4, representing 88% of the brand's full-year revenues, with strong performance in the Americas and EMEA regions [19] - Thom Browne's DTC revenues increased by 11% in Q4, driven by new store openings, while the wholesale channel reported a decline of 14% [20] - Tom Ford Fashion's DTC growth was 5% in Q4, with a 4% decline in the wholesale channel [21] Market Data and Key Metrics Changes - Europe, the Middle East, and Africa accounted for 36% of total revenues, with a 7% increase in Q4, while the Americas represented 30% of revenues, showing a 16% increase in Q4 [16][17] - The Greater China region accounted for 23% of total revenues, but reported a 10% decline in Q4, attributed to the wholesale channel's performance [17] - The rest of the Asia Pacific region saw a 5% growth in Q4, driven by improvements in Japan and Korea [17] Company Strategy and Development Direction - The company aims to strengthen its DTC channel and reduce reliance on wholesale, with a focus on elevating product offerings and enhancing customer experiences [8][19] - The leadership transition, with Gianluca Tagliabue as Group CEO, is expected to drive integration and accelerate ambitions across brands [12][3] - The company plans to continue expanding its retail presence, with new store openings in key markets, including Paris and the U.S. [83][107] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a "new normal" characterized by uncertainty and volatility, emphasizing the need for agility and coherence in strategy execution [10] - The outlook for 2026 includes expectations of continued growth in the U.S. market, despite potential challenges from the wholesale channel and the situation with Saks Global [75][76] - Management remains optimistic about the resilience of high-spending customers and plans to focus on this segment for future growth [90] Other Important Information - The company is closely monitoring the Chapter 11 bankruptcy situation of Saks Global, which has a limited impact on Zegna Group revenues [23][46] - The company is implementing a pricing strategy with mid-single-digit increases to offset currency fluctuations [89] Q&A Session Summary Question: What is the growth rate of Zegna brand DTC excluding China? - Management confirmed that the growth rate is around high teens percentage year-over-year, excluding China [25][28] Question: What FX impact is expected for 2026? - A headwind of approximately 2-3% is anticipated due to currency fluctuations, with some mitigation through hedging [28] Question: What are the key drivers for Zegna retail productivity? - Key drivers include mix and price, with a focus on elevating product offerings and customer experiences [41] Question: What is the exposure to Saks Global? - The overall exposure to Saks Global is in the low single-digit range of the group's revenues [46] Question: What are the expectations for wholesale performance in 2026? - Wholesale is expected to decline, with high single-digit negative growth anticipated for the group, particularly for Thom Browne [55][56] Question: How is the U.S. market performing? - The U.S. market continues to show strong performance, with good traction across all brands [75][76] Question: What is the strategy for Tom Ford moving forward? - The strategy includes expanding the store base and enhancing marketing efforts to maintain momentum [100]

Financial Data and Key Metrics Changes - The Ermenegildo Zegna Group reported total revenues of EUR 1.9 billion for FY 2025, with the Zegna brand contributing EUR 1.2 billion [3] - Q4 revenues reached EUR 591 million, reflecting a 4.6% organic growth [13] - The Zegna brand specifically saw Q4 revenues of EUR 362 million, up 7% driven by the DTC channel [14] Business Line Data and Key Metrics Changes - The DTC channel for the group reported a 10% growth in Q4, with Zegna DTC revenues growing 10% and accounting for 88% of full year 2025 brand revenues [17][18] - Thom Browne reported Q4 revenues of EUR 91 million, up 1.4% organic, while Tom Ford Fashion reached EUR 98 million, up 1.5% [13][14] - The textile segment grew by 1% [14] Market Data and Key Metrics Changes - Europe, the Middle East, and Africa represented 36% of total revenues for FY 2025, with a 7% increase in Q4 [15] - The Americas accounted for 30% of total revenues, recording a 16% increase in Q4 [15] - Greater China accounted for 23% of total revenues, but reported a 10% decrease in Q4 [16] Company Strategy and Development Direction - The company aims to strengthen its DTC channel and reduce reliance on wholesale, with a focus on elevating brand offerings and customer experiences [4][9] - The strategy includes enhancing the Zegna brand's presence through fashion shows and partnerships, such as the Airbus collaboration [4] - The company is committed to maintaining its heritage while adapting to market changes, emphasizing agility and innovation [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertain and volatile market environment, particularly in Greater China, but expressed optimism about the resilience of the U.S. market [10][73] - The leadership team is focused on executing strategies to enhance brand momentum and expand the high-end customer base [7][8] - The company is monitoring the situation with Saks Global, which filed for Chapter 11 bankruptcy, but believes it can absorb the impact due to limited revenue exposure [21][46] Other Important Information - The company is planning to open new stores in key markets, including the U.S. and the Middle East, while rationalizing its retail footprint in China [107] - The management highlighted the importance of personalization and high-end product offerings to attract high-spending customers [88][92] Q&A Session Summary Question: Zegna brand DTC growth and 2026 outlook - Management confirmed that excluding China, Zegna brand DTC growth was around high teens percentage year-over-year, with resilience expected in the U.S. market [24][30] Question: FX impact for 2026 - The company anticipates a 2-3% headwind from currency fluctuations in 2026, partially mitigated by hedging strategies [27] Question: Zegna retail productivity and perfume rollout - Zegna's retail productivity is close to EUR 20,000 per square meter, with expectations for high single-digit improvement driven by product mix and pricing strategies [36][40] Question: Exposure to Saks Global - The group's revenue exposure to Saks is in the low single-digit area, and management is closely monitoring the situation [46] Question: U.S. market performance and customer acquisition - The U.S. market continues to show strong performance, with both new customer acquisition and returning customers contributing to growth [70][74] Question: Wholesale channel expectations for 2026 - The wholesale channel is expected to remain negative in 2026, with a high single-digit decline anticipated for the group [55][58] Question: Pricing environment and high spending cohort - The company plans mid-single-digit price increases to offset currency fluctuations, with a focus on high-spending customers driving growth [87][92]