MILAN — Two years after its IPO, and on the occasion of its second Capital Markets Day, the Ermenegildo Zegna Group on Tuesday provided an updated group strategy following the Tom Ford Fashion acquisition, consolidated since April 29.
Chairman and chief executive officer Gildo Zegna said the group, beginning with the full year 2023, plans to deliver more than 10 percent compound annual revenue growth in the medium term, with adjusted operating profit CAGR of around 20 percent.
Following Zegna’s rebranding, the company expects store productivity to grow by almost 50 percent in 2023 from the 2021 baseline, ahead of its May 2022 medium-term guidance, and to gain market share globally. Zegna’s store productivity is projected to further increase at an around 10 percent CAGR in the medium term compared with 2023.
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Thom Browne expects a high teens CAGR in direct-to-consumer revenues in the next years, with a streamlined wholesale distribution, doubling revenues since 2021 in the mid-term, Zegna said.
Tom Ford Fashion expects to grow its revenues by more than 10 percent CAGR in the medium term, capitalizing on the potential of the brand, “whose strength today is much larger than its business,” said Zegna, and by leveraging group synergies to fuel its growth, especially in Europe and Asia, given its already strong brand awareness and business in the U.S.
Zegna said that, compared with the group’s first Capital Markets Day held at Oasi Zegna in May 2022, he was “pleased to say that today we are ahead of the plans we presented back then by one year, following the acquisition of Tom Ford Fashion.” At the time, the objective was to reach 2 billion euros in sales in the medium term, or by 2025.
“Our financial performance today paints a very clear picture: we are a stronger, more thriving company than ever before — we achieved these results while strengthening our brands, and this despite the challenging geopolitical and macroeconomic conditions over the past two years,” Zegna said.
The executive touted the opportunities ahead of “ building on the strong portfolio of our three complementary luxury brands and on the different stages in their growth cycles.”
This story was reported by WWD and originally appeared on WWD.com.
