Despite ongoing uncertainty surrounding China's economic recovery, Italian fashion house Ermenegildo Zegna remains committed to its medium-term expansion plans in the country. CEO Ermenegildo Zegna affirmed that the company’s 2-3 year growth strategy remains unchanged, though a few store openings planned for this year may be delayed. However, investments in marketing and made-to-measure services will continue.
The company, known for its high-end suits, blazers, and men's accessories, reported first-half sales of €960 million—a 6% increase from the previous year—though adjusted earnings before interest and taxes fell to €81 million. The CEO acknowledged a "difficult" August, attributing it to sluggish growth in the key China market.
Over the medium term, Zegna is looking to expand the Tom Ford fashion business—recently acquired by the company—in markets like China, Japan, and South Korea, where the brand currently lags. Additionally, Zegna aims to strengthen its core Zegna and Thom Browne brands in the US and Middle East.
In China, the company plans to focus on tailor-made and personalized in-store offerings, enhancing the shopping experience to attract consumers despite the economic uncertainty.
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