Zegna beats Q2 forecasts, bets on U.S. luxury boom with new store openings
ZGN•U.S. store openings planned this year
"We plan to open 14 to 15 stores this year across Zegna, Thom Browne and Tom Ford, with more than half of them in the United States as we remain confident in the strength of the U.S. luxury market", Executive Chairman Gildo Zegna told Reuters in an interview after the results.
The new openings will be balanced in part by a global store network optimisation programme, he added.
Second-quarter revenue beats estimates
Italian luxury group Ermenegildo Zegna said on Thursday its second-quarter organic revenue rose by 11%, driven by a strong performance in the Americas, where it sees further growth opportunities and plans to open new stores.
Revenue totalled €517 million ($590 million), beating an analysts' consensus of €493 million compiled by Visible Alpha.
Regional sales trends varied in the quarter
Sales in the Americas rose 22% on an organic basis in the quarter, supported by demand for personalization and made-to-measure services for the Zegna brand, as well as by the fashion show held at Malibu Pier in Los Angeles, he added.
Sales in the Middle East remained positive during the quarter despite the U.S.-Iran conflict, while growth in Europe slowed to 1.6%, mirroring a broader slowdown in the luxury sector driven by weaker spending from tourists, especially Asian travellers.
In the second quarter the Greater China region grew 8.6%.
The group's flagship Zegna brand continued to drive sales growth globally.
