On the heels of a strong 2023, Ermenegildo Zegna Group — parent company of the Zegna, Thom Browne and Tom Ford brands — is making big advancements on the footwear front.
In an interview, Gildo Zegna, chairman and chief executive officer, underscored the importance of investing in the group’s supply chain. The latest addition is a new state-of-the-art footwear and leather goods production facility in Sala Baganza, near Parma, Italy, expected to be completed by the end of 2026, as previously reported.
Designed by ACPV Architects Antonio Citterio Patricia Viel, it will employ 300 people, and primarily produce men’s shoes and leather goods.
Zegna emphasized that “it is very important and it is much more than a plant, it’s a project of design, branding, research and development and training center and will house the academy.”
“Luxury footwear and leather goods are flagships of Italian manufacturing,” said Zegna, who has long touted the importance of training a new generation of artisans and preserving the uniqueness of Made in Italy.
The facility’s aim will also be to support the growth of Zegna’s successful Triple Stitch sneaker — and more generally, will strengthen the group’s customization capabilities as a research and development center. The executive said it could potentially produce for the other group brands.
With the approval of local organizations, the 135,000-square-foot facility will be constructed on a 10-hectare plot of land.
The Zegna group also is strengthening its “retail culture” and continuing to streamline its wholesale accounts.
The first quarter will be the period with the strongest impact from the wholesale rationalization, the executive said. “Organic performance is expected mid-single digit negative due to wholesale revenues expected to be down high double digit. Starting from the second quarter and going more into the second part of the year, we are expecting to see an improved performance, largely driven by stronger direct-to-consumer [performance], while the wholesale streamlining will continue.”
The CEO said he was “fairly confident” that the revenue consensus of 2 billion euros for the year “is achievable. For sure it’s challenging, given the global macro-economic and geo-political issues, but I am absolutely confident we are taking the right actions to deliver it,” he said.
The integration of Tom Ford is also on track. And at Thom Browne, the brand is focusing on its own retail expansion, and refining the wholesale strategy. In the department store space, concessions will be a focus. “This allows consistent pricing, visuals and so on. And we are not seeing any resistance to prices,” Zegna said.
The group more than doubled its net profit last year. It reached 135.7 million euros, compared with 65.3 million euros in 2022, on revenues that rose 27.6 percent to 1.9 billion euros.
In 2023, the direct-to-consumer channel recorded sales of 1.26 billion euros, up 37.8 percent compared with 918.2 million euros in 2022. Wholesale revenues amounted to 634.7 million euros, up 11.3 percent year-on-year.
Asked if he was eyeing further acquisitions, Zegna said “there is nothing on the horizon,” but that in any case he was “not looking at buying brands, and a supplier would be more interesting for us.”
