The following is a summary of the Ermenegildo Zegna N.V. (ZGN) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Ermenegildo Zegna N.V. reported Q1 2024 group revenues of €463 million, up 8% year-over-year and up 11% excluding negative currency headwinds. However, on an organic basis, revenues were down 5%.

• The Zegna segment saw positive growth of 4% on an organic basis.

• TOM FORD Fashion segment contributed €65 million in revenue, in line with expectations.

• Zegna brand recorded a solid plus 7% organic growth and maintained strong performance in multiple product categories.

Business Progress:

• The Zegna brand is experiencing double-digit organic growth in most markets, including the U.S and EMEA.

• Cohesion is aimed at brand strengthening in the China market. To that end, efforts to improve brand awareness, store client experience and merchandising are being made.

• Zegna has opened 24 new stores in Q1 2024, increasing total outlets to 277.

• There has been a shift towards a buy drop approach which changes the timing of deliveries.

• The company is seeing commendably high growth in the US, especially due to focus on the high-end market and a shift towards more retail sales.

• Special events are being organized internationally along with the implementation of personalization projects to heighten brand allure.

• The company is adopting measures to adjust to weak sales in China without compromising long-term brand health. It is also closely managing its inventory and considering changes in merchandising strategy to boost appeal in the Chinese market.

More details: Ermenegildo Zegna NV IR

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