Half Year 2024 Ermenegildo Zegna NV Earnings Call Transcript
Key Points
- Ermenegildo Zegna NV (ZGN) reported a 6% year-over-year revenue growth for H1 2024, driven by the Zegna brand and the consolidation of Tom Ford fashion.
- Gross profit rose by 10 percentage points to EUR 637 million, with a margin of 66.4% on revenues, driven by a better channel mix and improved inventory management.
- The company is doubling down on its One Brand strategy, evolving its communication to engage deeper with a targeted audience and enhancing customer experiences.
- Successful events like VILLA Zegna New York and the Fall 2024 Capsule Collection launch indicate strong brand engagement and customer interest.
- Ermenegildo Zegna NV (ZGN) continues to invest in long-term projects, including a new Italian shoe and leather accessory plant in Parma, Italy, to strengthen internal production capabilities.
- The luxury sector is experiencing a deep normalization phase, posing challenges for Ermenegildo Zegna NV (ZGN) and other companies in the industry.
- SG&A expenses increased to EUR 498 million, with a 51.8% incidence of revenue compared to 46% last year, partly due to the consolidation of Tom Ford fashion.
- Thom Browne brand is facing challenges, particularly in China, and recorded a decrease in revenues, impacting overall performance.
- The company reported a EUR 12 million adjusted EBIT negative result for Tom Ford, reflecting investments in talent and organization amid underperforming top-line results.
- Ermenegildo Zegna NV (ZGN) anticipates that 2024 will remain challenging, with uncertainties extending into 2025, particularly in key markets like China.
(Audio in Progress) Joining us today, the Ermenegildo Zegna Group leadership team. Before we begin, I need to point out that we will make certain forward-looking statements during today's call. Our actual results may be materially different from those expressed or implied by these forward-looking statements.
Also, statements are subject to a number of risks and uncertainties, including those described in our SEC filings. Please refer to the forward-looking statements cautionary statement included at page 2 of today's presentation. I'll now hand over to Gildo Zegna, Group Chairman and CEO.
Good morning and good afternoon. And thank you for joining today conference call on Ermenegildo Zegna Group, H1 2024 results. Before we speak about the numbers, let me make some comments on the sector and our strategy and then I'll let Gianluca to go in details through our results.
So far, 2024 has been challenging around the world and across
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