Zegna Group announces robust growth plans

At its second Capital Markets Day at the New York Stock Exchange, Zegna Group announced an update on its strategic goals and financial outlook. At the group level, beginning in FY 2023, the company aims to deliver over 10 percent CAGR in the medium term, with adjusted EBIT CAGR of around 20 percent.

The company expects that its goals will generate significant cash surplus even while taking into consideration higher, targeted investments in marketing and capital expenditure to enhance brand desirability and drive growth.

Commenting on the strategy update, Ermenegildo “Gildo” Zegna, chairman and CEO of the Zegna Group, said: “Our results so far demonstrate our ability to execute on the Zegna and Thom Browne strategies. This is why, as we start to execute on Tom Ford Fashion, I am confident in our ability to deliver on the objectives we are sharing today for the group as part of our business strategy.”

Zegna Group sets growth targets

Zegna expects further store productivity increases and market share gains globally, building on the strong results achieved through the successful implementation of the Zegna One Brand strategy. Store productivity at Zegna is expected to grow by almost 50 percent in 2023 from the 2021 baseline, ahead of our May 2022 medium term guidance. It is projected to further increase at 10 percent CAGR in the medium term compared with 2023.

The company said that Thom Browne, building on its 20 year anniversary, expects a high teens compounded average growth in DTC revenues in the next year, with a streamlined wholesale distribution.

Tom Ford Fashion expects to grow its revenues by over 10 percent compounded annual growth rate in the medium term, capitalising on the potential of the brand and by leveraging group synergies to fuel its growth.