Q4 2025 Ermenegildo Zegna NV Earnings Call

February 2, 2026

Speaker #1: Hello, everyone, and thank you for standing by. Ermenegildo Zegna Group FY2025 preliminary revenues call will be beginning in one minute's time. We thank you for your patience.

Operator: Hello, everyone, and thank you for standing by. The Ermenegildo Zegna Group FY 2025 Preliminary Revenues Call will be beginning in 1 minute's time. We thank you for your patience. Good afternoon, good morning, everyone. Thank you for joining the Ermenegildo Zegna Group FY 2025 Preliminary Revenues Call. Please note that today's material and presentation are available under the ZegnaGroup.com website. Joining us today, the Zegna Group leadership team, including Gildo Zegna, the group executive chairman, and Gianluca Tagliabue, group CEO. Before we begin, we need to point out that the team will make certain forward-looking statements during the call. The group's actual results may be materially different from those expressed or implied by these forward-looking statements. Also, these statements are subject to a number of risks and uncertainties, including those described in our SEC filings.

Speaker #2: Good afternoon. Good morning, everyone. Thank you for joining the Ermenegildo Zegna Group FY2025 preliminary revenues call. Please note that today's material and presentation are available on the ZegnaGroup.com website.

Speaker #2: Joining us today: the Zegna Group Leadership Team, including Gildo Zegna, the Group Executive Chairman, and Gianluca Tagliabue, Group CEO. Before we begin, we need to point out that the team will make certain forward-looking statements during the call.

Speaker #2: The Group's actual results may be materially different from those expressed or implied by these forward-looking statements. Also, these statements are subject to a number of risks and uncertainties, including those described in our SEC filings.

The group's actual results may be materially different from those expressed or implied by these forward-looking statements. Also, these 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.

Q4 2025 Ermenegildo Zegna NV Earnings Call

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Q4 2025 Ermenegildo Zegna NV Earnings Call

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Monday, February 2nd, 2026 at 1:00 PM

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Speaker #2: Please refer to the forward-looking statements' cautionary statement included at page two of today's presentation. I'll now hand over to Gildo Zegna.

Operator: 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.

Speaker #3: Good morning and good afternoon, everyone. Thank you for joining today's call. Our first caller is the Executive Chairman, and for Gianluca Tagliabue as Group CEO.

Gildo Zegna: Good morning and good afternoon, everyone. Thank you for joining today's call. Our first call as Executive Chairman and for Gianluca Tagliabue as Group CEO. Very exciting indeed. As you know, in November last year, we announced a new leadership structure, a positive step forward for me and for our group, having appointed Gianluca Tagliabue as Group CEO and Edoardo and Angelo Zegna, my two sons, members of the fourth generation of the family, as co-CEO of the Zegna brand. This decision marks an important milestone to further strengthen our group and smoothly prepare the next generation of leaders who will carry forward our legacy, just as we have done for over a century, and we continue to do so. By 2025, also is an important year for our business performance, particularly for the Zegna brand.

Speaker #3: Very exciting, indeed. As you know, in November last year, we announced a new leadership structure: a positive step forward for me and for our group, having appointed Gianluca Tagliabue as Group CEO and Eduardo and Angelo Zegna, my two sons, members of the fourth generation of the family, as co-CEOs of the Zegna brand.

Speaker #3: This decision marks an important milestone to further strengthen our group and smoothly prepare the next generation of leaders who will carry forward our legacy.

Speaker #3: Just as we have done for over a century and will continue to do so. By 2025, also, it is an important year for our business performance, particularly for the Zegna brand. The group thought the revenues were €1.9 billion, with €1.2 billion.

Gildo Zegna: The group total revenue were EUR 1.9 billion, with Zegna brand reaching EUR 1.2 billion. These results were driven by the strategic DTC channel. In Q4, both the group DTC and Zegna DTCs delivered a sound 10% organic growth. For Zegna in particular, these results have been led by Americas and EMEA, with also China slightly improving, although remaining volatile. The Zegna brand strategy over the past years has been clear and coherent. In 2025, we delivered consistent and strategically aligned milestones, from the fashion show in Villa Zegna in Dubai to the Art Basel partnership, from the launch of the Vellus Aureum collection to Villa Zegna in Miami.

The group total revenue were EUR 1.9 billion, with Zegna brand reaching EUR 1.2 billion. These results were driven by the strategic DTC channel. In Q4, both the group DTC and Zegna DTCs delivered a sound 10% organic growth. For Zegna in particular, these results have been led by Americas and EMEA, with also China slightly improving, although remaining volatile. The Zegna brand strategy over the past years has been clear and coherent. In 2025, we delivered consistent and strategically aligned milestones, from the fashion show in Villa Zegna in Dubai to the Art Basel partnership, from the launch of the Vellus Aureum collection to Villa Zegna in Miami.

Speaker #3: These results were driven by the strategic DTC channel. In Q4, both the Group DTC and Zegna DTCs delivered a solid 10% organic growth. With Zegna in particular, these results have been led by the Americas and EMEA, with China also slightly improving.

Speaker #3: Although remaining volatile, the Zegna brand strategy over the past years has been clear and coherent. In 2025, we delivered consistent and strategically aligned milestones.

Speaker #3: From the fashion show in Villa Z in Dubai, to the Airbus partnership, from the launch of the Value Salon collection, to Villa Z in Miami, and last but certainly not least, the recent beautiful Fall-Winter '26 fashion show in Milano.

Gildo Zegna: Last, but certainly not least, the recent beautiful Fall/Winter 2026 fashion show in Milan, A Family Closet, where the brand opened the doors of the family closet, taking pieces from the family wardrobe, including mine, as well as those of my grandfather. Because a closet is much more than a space in which we keep our goods protected. For us, it is a shrine where the beauty of cherished item is celebrated. In The Family Closet, Alessandro Sartori presented timeless collection, pieces designed to remain alive for generation to come, because only memories can define identity and give the unique meaning they earn over a lifetime, something only Zegna heritage and mastery can create. The show was acclaimed by press, buyers, and clients as one of the best this menswear fashion week.

Last, but certainly not least, the recent beautiful Fall/Winter 2026 fashion show in Milan, A Family Closet, where the brand opened the doors of the family closet, taking pieces from the family wardrobe, including mine, as well as those of my grandfather. Because a closet is much more than a space in which we keep our goods protected. For us, it is a shrine where the beauty of cherished item is celebrated. In The Family Closet, Alessandro Sartori presented timeless collection, pieces designed to remain alive for generation to come, because only memories can define identity and give the unique meaning they earn over a lifetime, something only Zegna heritage and mastery can create. The show was acclaimed by press, buyers, and clients as one of the best this menswear fashion week.

Speaker #3: A family closet. Where the brand opened the doors of the family closet, taking pieces from the family wardrobe—including mine, as well as those of my grandfather.

Speaker #3: Because a closet is much more than space in which we keep our garments protected. For us, it is a shrine where the beauty of cherished items is celebrated.

Speaker #3: In the family closet, Alessandro Sartori presented a timeless collection. Pieces designed to remain alive for generations to come, because only memories can define identity and give the unique meaning they earn over a lifetime.

Speaker #3: Something only Zegna heritage and mastery can create. The show was acclaimed by press, buyers, and clients as one of the best this menswear fashion week.

Speaker #3: The fashion show was complemented by Villa Zegna Milano, our private club. An invitation-only temporary store reaffirming once again in Milan the strength of this format, which allows Zegna guests to experience our familiar heritage.

Gildo Zegna: The fashion show was complemented by Villa Zegna Milano, our private club, an invitation-only temporary store, reaffirming once again in Milan the strength of this format, which allows Zegna guests to experience our family heritage, century-old textile excellence, and leadership in craftsmanship and su misura. Bravo to all people, starting with Sartori, Edoardo, Angelo, and who conceived this concept and continue to deliver strong and consistently improving results. I just want to emphasize that unless we had our filiera from textile down to the clothing chain, we could have never have achieved these results. So a bravo also to all factory people and the know-how of our tailors and artisans in the factory.

The fashion show was complemented by Villa Zegna Milano, our private club, an invitation-only temporary store, reaffirming once again in Milan the strength of this format, which allows Zegna guests to experience our family heritage, century-old textile excellence, and leadership in craftsmanship and su misura. Bravo to all people, starting with Sartori, Edoardo, Angelo, and who conceived this concept and continue to deliver strong and consistently improving results. I just want to emphasize that unless we had our filiera from textile down to the clothing chain, we could have never have achieved these results. So a bravo also to all factory people and the know-how of our tailors and artisans in the factory.

Speaker #3: Century-old textile excellence and leadership in craftsmanship and su misura. Bravo to all people, starting with Sartori, Eduardo, Angelo, and those who conceived this concept and continue to deliver strong and consistently improving results.

Speaker #3: I just want to emphasize that unless we had our filiera from textile down to the clothing chain, we could have never achieved these results.

Speaker #3: So, a bravo also to all factory people and the know-how of our tailors and artisans in the factory. Let me now comment on top fashion, which in '25 was a year in which we further shaped the evolution of the brand's fashion business.

Gildo Zegna: Let me now comment on Tom Ford Fashion, which in 25 was a year in which we further shaped the evolution of the brand fashion business. The first collection designed by Haider, which is the Winter 25 collection, received very good results, as noted during last earnings call. In the past weeks, we have been introducing the Spring 26 collection, the second by Haider, that is, as we speak, also receiving a real positive response in the store. But above and beyond this, the team, led by Lelio Gavazza, is working to cement Tom Ford as a true brand of influence in the high-end fashion industry. We know that our journey is not yet complete, but the team is built, the plan is set, and we now have to execute together.

Let me now comment on Tom Ford Fashion, which in 25 was a year in which we further shaped the evolution of the brand fashion business. The first collection designed by Haider, which is the Winter 25 collection, received very good results, as noted during last earnings call. In the past weeks, we have been introducing the Spring 26 collection, the second by Haider, that is, as we speak, also receiving a real positive response in the store. But above and beyond this, the team, led by Lelio Gavazza, is working to cement Tom Ford as a true brand of influence in the high-end fashion industry. We know that our journey is not yet complete, but the team is built, the plan is set, and we now have to execute together.

Speaker #3: The first collection designed by Heider, which is the Winter '25 collection, received very good results, as noted during last year in the call. In the past weeks, we have been introducing the Spring '26 collection, the second by Heider.

Speaker #3: That is, as we speak, also receiving a real positive response in the store. But above and beyond this, the team led by Lelio Gavazza is working to cement On Forth as a true brand of influence in the high-end fashion industry.

Speaker #3: We know that our journey is not yet complete, but the team is built, the plan is set, and we now have to execute together.

Speaker #3: Our priority for '26 will be to reinforce the brand, momentum, and resonance, and to expand its high-end customer base. Moving to Thom Browne, in '25, we continued on our path to reduce the brand exposure to the wholesale channel.

Gildo Zegna: Our priority for 2026 will be to reinforce the brand, momentum, and resonance, and to expand its high-end customer base. Moving to Thom Browne, in 2025, we continued on our path to reduce the brand exposure to the wholesale channels. As you know, we appointed Sam Lavin as CEO to transform the company into a retail-first organization. I am pleased to see the initial, although still timid, results of this strategy. Q4 DTC delivered good growth, even if still driven by new opening. We all know these results are not yet where we want them to be, but they confirm that we are starting to take the right step. Our focus for 2026 will be to deliver sound DTC, comparable store sales growth, to sharpen our collections and marketing strategy. This will allow us to evolve our customer base and continue elevating the quality of our wholesale partner.

Our priority for 2026 will be to reinforce the brand, momentum, and resonance, and to expand its high-end customer base. Moving to Thom Browne, in 2025, we continued on our path to reduce the brand exposure to the wholesale channels. As you know, we appointed Sam Lavin as CEO to transform the company into a retail-first organization. I am pleased to see the initial, although still timid, results of this strategy. Q4 DTC delivered good growth, even if still driven by new opening.

Speaker #3: Appointed Sam Laban as CEO to transform the company into a retail-first organization. As you know, we are pleased to see the initial, although still timid, results of this strategy.

Speaker #3: Q4 DTC delivered good growth, even if still driven by new openings. We all know these results are not yet where we want them to be, but they confirm that we are starting to take the right steps.

We all know these results are not yet where we want them to be, but they confirm that we are starting to take the right step. Our focus for 2026 will be to deliver sound DTC, comparable store sales growth, to sharpen our collections and marketing strategy. This will allow us to evolve our customer base and continue elevating the quality of our wholesale partner.

Speaker #3: Our focus for 2026 will be to deliver sound DTC comparable store-sales growth to sharpen our collections and marketing strategy. This will allow us to evolve our customer base and continue elevating the quality of our wholesale partner.

Speaker #3: And lastly, I want to comment on our filiera. It continues to be our state-of-the-art laboratory, where we test, refine, and develop fabrics that represent the absolute pinnacle of the luxury world, and where our craftsmanship and know-how continue to set us apart.

Gildo Zegna: Lastly, I want to comment on our filiera. It continues to be our state-of-the-art laboratory, where we test, refine, and develop fabrics that represent the absolute pinnacle of the luxury world, and where our craftsmanship know-how continues to set us apart. We remain the custodian of this heritage while strengthening it further, because we know it is what makes us different from any other player in the history. The Trofeo wool fabrics, our iconic fabrics, born in 1965, reinterpreted today and presented at Zegna fashion show, is a further evidence of it. Looking to the year ahead, I believe we all agree that we must face the new normal. By new normal, I mean a world more uncertain and less predictable. In this context, agility, coherence, vision, speed, together with talents, will make a difference.

Lastly, I want to comment on our filiera. It continues to be our state-of-the-art laboratory, where we test, refine, and develop fabrics that represent the absolute pinnacle of the luxury world, and where our craftsmanship know-how continues to set us apart. We remain the custodian of this heritage while strengthening it further, because we know it is what makes us different from any other player in the history. The Trofeo wool fabrics, our iconic fabrics, born in 1965, reinterpreted today and presented at Zegna fashion show, is a further evidence of it. Looking to the year ahead, I believe we all agree that we must face the new normal. By new normal, I mean a world more uncertain and less predictable. In this context, agility, coherence, vision, speed, together with talents, will make a difference.

Speaker #3: We remain the custodian of this heritage while strengthening it further, because we know it is what makes us different from any other player in history.

Speaker #3: The Trofeo wool fabrics, our iconic fabrics born in 1965, reinterpreted today and presented at the Zegna Fashion Show, is a further evidence of it.

Speaker #3: Looking to the year ahead, I believe we all agree that we must face a new normal. And by new normal, I mean a world more uncertain and less predictable.

Speaker #3: In this context, agility, coherence, vision, and speed, together with talents, will make the difference. We know the road may not always be linear, but we must face it with determination.

Gildo Zegna: We know the road may not always be linear, but we must face it with determination, prudence, and with the same courage that has always distinguished my family and our group. The courage to be pioneers while remaining true to who we are. As the main shareholder of the Ermenegildo Zegna Group, our family, and I personally, are fully committed to growing it and to making it even more solid for the generation to come. This is the undisputed goal for Gianluca, Eduardo, Angelo, Lelio, Sam, and myself, and for the entire leadership team. Thank you.

We know the road may not always be linear, but we must face it with determination, prudence, and with the same courage that has always distinguished my family and our group. The courage to be pioneers while remaining true to who we are. As the main shareholder of the Ermenegildo Zegna Group, our family, and I personally, are fully committed to growing it and to making it even more solid for the generation to come. This is the undisputed goal for Gianluca, Eduardo, Angelo, Lelio, Sam, and myself, and for the entire leadership team. Thank you.

Speaker #3: Prudence, and with the same courage that has always distinguished my family and our group—the courage to be pioneers, while remaining true to who we are.

Speaker #3: As the main shareholder of Ermenegildo Zegna Group, our family, and I personally, I am fully committed to growing it and to making it even more solid.

Speaker #3: For the generation to come. This is the undisputed goal for Gianluca, Eduardo, Angelo, Lelio, Sam, and myself, and for the entire leadership team. Thank you.

Speaker #3: you. Good

Gianluca Tagliabue: Good morning, and good afternoon to all of you. Before commenting on the full year 25 revenues, let me begin by expressing my gratitude to the board, our shareholders, and above all, to Gildo, for the trust shown in my regard. It is an honor as well as a clear responsibility to step into my new role, and I will carry it out with the utmost respect for our unique century-long heritage. In my new capacity, I will work closely with the CEOs of our brands, Sam, Lelio, Angelo, Edo, to ensure that we can fully leverage the group's strengths, enhance integration, and accelerate our ambitions. At the same time, I will continue to oversee our manufacturing platform of finished products and corporate functions.

Speaker #2: Morning and good afternoon to all of you. Before commenting on the full-year '25 revenues, let me begin by expressing my gratitude to the Board, our shareholders, and above all to Gildo for the trust shown in my regard.

Speaker #2: It is an honor, as well as a clear responsibility, to step into my new role, and I will carry it out with the utmost respect for our unique, century-long heritage.

Speaker #2: In my new capacity, I will work closely with the CEOs of our brands—Sam, Lelio, Angelo, and Edo—to ensure that we can fully leverage the group's strengths in US integration and accelerate our ambitions.

Speaker #2: At the same time, I will continue to oversee our manufacturing platform of finished products and corporate functions. Gildo has been a mentor to me, and I know he will continue to stand by my side and by all of ours to continue to guide us and safeguard our unique legacy.

Gianluca Tagliabue: Gildo has been a mentor to me, and I know he will continue to stand by my side and by all of ours, to continue to guide us and safeguard our unique legacy. So thank you, Gildo. Let me now move to page eight of the presentation. As always, I will comment on the organic performance, which excludes foreign exchange impacts, and therefore better reflects the underlying business dynamic. In 2025, we reached EUR 1,917 million in revenues, +1% versus last year, and EUR 591 million in Q4, up 4.6% organic. In the last quarter of the year, Zegna brand reported EUR 362 million, +7%, driven by the DTC channel that has been landed at +10% for the brand.

Gildo has been a mentor to me, and I know he will continue to stand by my side and by all of ours, to continue to guide us and safeguard our unique legacy. So thank you, Gildo. Let me now move to page eight of the presentation. As always, I will comment on the organic performance, which excludes foreign exchange impacts, and therefore better reflects the underlying business dynamic. In 2025, we reached EUR 1,917 million in revenues, +1% versus last year, and EUR 591 million in Q4, up 4.6% organic. In the last quarter of the year, Zegna brand reported EUR 362 million, +7%, driven by the DTC channel that has been landed at +10% for the brand.

Speaker #2: So, thank you, Gildo. Let me now move to page eight of the presentation. As always, I will comment on the organic performance, which excludes foreign exchange impacts and therefore better reflects the underlying business dynamic.

Speaker #2: In 2025, we reached €1,917 million in revenues, plus one percent versus last year, and €591 million in Q4, up 4.6% organic. In the last quarter of the year, Zegna brand reported €362 million, plus seven percent, driven by the DTC channel that has landed at plus 10 percent for the brand.

Speaker #2: Tom Brown reached €91 million at plus 1.4% organic, and Tom Ford Fashion reached €98 million, up one and a half points. Let me now move to the following pages for a deep dive, turning to page nine.

Gianluca Tagliabue: Thom Browne reached EUR 91 million at +1.4% organic, and Tom Ford Fashion reached EUR 98 million, up 1.5 percentage points. Let me now move to the following pages for a deep dive. Turning to page 9, we comment on the performance by brand in the quarter. Zegna brand recorded EUR 362 million in revenues, +7% growth, driven by the solid sequential acceleration in the DTC channel, specifically in Europe, Middle East, and Americas. Thom Browne reported EUR 91 million in Q4, +1%, also in this case, driven by a good performance in DTC, driven by new openings. Tom Ford Fashion landed at EUR 98 million revenues, +1% organic, with the DTC channel growing faster. Finally, we observed Textile growing at +1%. Moving now to page 10, we see revenues split by geography.

Thom Browne reached EUR 91 million at +1.4% organic, and Tom Ford Fashion reached EUR 98 million, up 1.5 percentage points. Let me now move to the following pages for a deep dive. Turning to page 9, we comment on the performance by brand in the quarter. Zegna brand recorded EUR 362 million in revenues, +7% growth, driven by the solid sequential acceleration in the DTC channel, specifically in Europe, Middle East, and Americas. Thom Browne reported EUR 91 million in Q4, +1%, also in this case, driven by a good performance in DTC, driven by new openings. Tom Ford Fashion landed at EUR 98 million revenues, +1% organic, with the DTC channel growing faster. Finally, we observed Textile growing at +1%. Moving now to page 10, we see revenues split by geography.

Speaker #2: We comment on the performance by brand in the quarter. Zegna brand recorded €362 million in revenues, plus 7% growth, driven by the solid sequential acceleration in the DTC channel, specifically in Europe, the Middle East, and the Americas.

Speaker #2: Thom Browne reported $91 million in Q4, plus one. Also in this case, driven by good performance in DTC, driven by new openings. Tom Ford Fashion landed at $98 million revenues, plus one organic, with a DTC channel growing faster.

Speaker #2: Finally, we observed textile growing at plus one. Moving now to page 10, we see revenues split by geography. Europe, Middle East, and Africa represented 36% of total revenues in full year '25 and was up plus seven in Q4, with a solid performance in the DTC channel, in particular at the Zegna brand, which offsets a negative impact of the wholesale channel rationalization.

Gianluca Tagliabue: Europe, Middle East, and Africa represented 36% of total revenues in full year 2025, and was up +7% in Q4, with a solid performance in the DTC channel, in particular at Zegna brand, which offsets a negative impact of the wholesale channel rationalization. The Americas, which accounted for 30% of the full year revenues, recorded +16% increase in Q4, despite the challenging comparison of the last quarter of last year. This performance was underpinned by the strong DTC momentum at Zegna brand, which continues to deliver outstanding results, thanks to the robust brand momentum and the team fully capable of executing our strategy. Indeed, Zegna brand continued to grow strong double digits in US, as well as with the US consumer cluster. Moving on to Greater China region.

Europe, Middle East, and Africa represented 36% of total revenues in full year 2025, and was up +7% in Q4, with a solid performance in the DTC channel, in particular at Zegna brand, which offsets a negative impact of the wholesale channel rationalization. The Americas, which accounted for 30% of the full year revenues, recorded +16% increase in Q4, despite the challenging comparison of the last quarter of last year. This performance was underpinned by the strong DTC momentum at Zegna brand, which continues to deliver outstanding results, thanks to the robust brand momentum and the team fully capable of executing our strategy. Indeed, Zegna brand continued to grow strong double digits in US, as well as with the US consumer cluster. Moving on to Greater China region.

Speaker #2: The Americas, which accounted for 30% of full year revenues, recorded a plus 16% increase in Q4 despite the challenging comparison of the last quarter of last year.

Speaker #2: This performance was underpinned by the strong DTC momentum at Zegna brand, which continues to deliver outstanding results thanks to the robust brand momentum and the team fully capable of executing our strategy.

Speaker #2: Indeed, Zegna brand continued to grow sound double digits in the US as well as with the US consumer cluster. Moving on to Greater China region in full year '25, the region accounted for 23% of total revenues.

Gianluca Tagliabue: In full year 2025, the region accounted for 23% of total revenues, so it's half of the incidence compared to the time of listing of our group in 2021. In Q4, GCR reported a revenue decrease of -10%, a sequential softer performance compared to Q3, which is only due to Thom Browne and TOM FORD and to the wholesale channel. Across this, in this case, of wholesale channel, across the three brands, whose quarterly performance was influenced by different delivery timing. Zegna DTC specifically improved in the quarter, while still being negative. We expect China to remain volatile throughout the year, and as you know, we planned accordingly the budget of 2026. Last, rest of Asia Pacific in Q4 reported +5% growth, driven by sequential improvement at both Zegna and TOM FORD Fashion, specifically in Japan and Korea.

In full year 2025, the region accounted for 23% of total revenues, so it's half of the incidence compared to the time of listing of our group in 2021. In Q4, GCR reported a revenue decrease of -10%, a sequential softer performance compared to Q3, which is only due to Thom Browne and TOM FORD and to the wholesale channel. Across this, in this case, of wholesale channel, across the three brands, whose quarterly performance was influenced by different delivery timing. Zegna DTC specifically improved in the quarter, while still being negative. We expect China to remain volatile throughout the year, and as you know, we planned accordingly the budget of 2026. Last, rest of Asia Pacific in Q4 reported +5% growth, driven by sequential improvement at both Zegna and TOM FORD Fashion, specifically in Japan and Korea.

Speaker #2: So, it's half of the incidence compared to the time of listing of our group. In 2021, in Q4, GCR reported their revenue decrease of minus 10%, a sequential softer performance compared to Q3, which is only due to Tom Brown and Tom Ford and to the wholesale channel.

Speaker #2: Across this, in this case of wholesale channel across the three brands, whose quarterly performance was influenced by different delivery times. Zegna DTC specifically improved in the quarter while still being negative.

Speaker #2: We expect China to remain volatile throughout the year, and as you know, we planned accordingly for the budget of 2026. The rest of Asia Pacific in Q4 reported plus 5% growth, driven by sequential improvement at both Zegna and Tom Ford Fashion, specifically in Japan and Korea.

Speaker #2: Moving to page 11, let me go quickly through it since we will comment on the trend by channel for each brand. I will only highlight that the DTC channel at group level reported plus 10% growth in Q4, in sequential acceleration compared to plus 9% in Q3, and in full year 2025, DTC accounts for 82% of group’s branded revenues, which as you know, exclude B2B businesses.

Gianluca Tagliabue: Moving to page eleven. Let me go quickly through it, since we will comment on the trend by channel for each brand. I will only highlight that the DTC channel at group level reported +10% growth in Q4, in sequential acceleration compared to +9% in Q3, and in full year 2025, DTC accounts for 82% of group's branded revenues, which, as you know, exclude textile and other revenues, which are B2B businesses. Let's move now to page twelve, where we deep dive on Zegna brand revenues by distribution channel. In Q4, Zegna DTC revenues grew 10%, accounting for 88% of full year 2025 brand revenues. As we mentioned, we saw an acceleration of performance in the last quarter, notwithstanding the solid base of comparison across regions in Q4 of last year.

Moving to page eleven. Let me go quickly through it, since we will comment on the trend by channel for each brand. I will only highlight that the DTC channel at group level reported +10% growth in Q4, in sequential acceleration compared to +9% in Q3, and in full year 2025, DTC accounts for 82% of group's branded revenues, which, as you know, exclude textile and other revenues, which are B2B businesses. Let's move now to page twelve, where we deep dive on Zegna brand revenues by distribution channel. In Q4, Zegna DTC revenues grew 10%, accounting for 88% of full year 2025 brand revenues. As we mentioned, we saw an acceleration of performance in the last quarter, notwithstanding the solid base of comparison across regions in Q4 of last year.

Speaker #2: Let's move now to page Textile and Other Revenues, which are 12, where we deep dive on Zegna brand revenues by distribution channel. In Q4, Zegna DTC revenues grew 10%, accounting for 88% of full year 2025 brand's revenues.

Speaker #2: As we mentioned, we saw an acceleration of performance in the last quarter, notwithstanding the solid base of comparison across regions in Q4 of last year.

Speaker #2: As we mentioned, the Americas and Europe, Middle East, and Africa continued to report solid double-digit growth. Greater China region revenues remain negative, but with an improved trend compared to Q3.

Gianluca Tagliabue: As we mentioned, the Americas and Europe, Middle East, and Africa continued to report solid double-digit growth. Greater China Region revenues remain negative, but with an improved trend compared to Q3. Revenues from the Chinese cluster improved sequentially in the quarter to a mid-single-digit negative. At the end of December, the number of Zegna DOS was unchanged compared to the end of September. Moving to wholesale, where the brand's revenues were down -17% in Q4 and accounting now for 12% of overall revenues for the year. The performance reflects the deliberate actions put in place by the brand to rationalize the distribution of iconic Zegna products and to increase direct control on the distribution channels. Moving to page 13, Thom Browne revenue split by distribution channel.

As we mentioned, the Americas and Europe, Middle East, and Africa continued to report solid double-digit growth. Greater China Region revenues remain negative, but with an improved trend compared to Q3. Revenues from the Chinese cluster improved sequentially in the quarter to a mid-single-digit negative. At the end of December, the number of Zegna DOS was unchanged compared to the end of September. Moving to wholesale, where the brand's revenues were down -17% in Q4 and accounting now for 12% of overall revenues for the year. The performance reflects the deliberate actions put in place by the brand to rationalize the distribution of iconic Zegna products and to increase direct control on the distribution channels. Moving to page 13, Thom Browne revenue split by distribution channel.

Speaker #2: Revenues from the Chinese cluster improved sequentially in the quarter to a mid-single-digit negative. At the end of December, the number of Zegna DOS was unchanged compared to the end of September.

Speaker #2: Moving to wholesale, where the brand's revenues were down 17% in Q4 and now account for 12% of overall revenues for the year. The performance reflects the deliberate actions put in place by the brand to rationalize the distribution of iconic Zegna products and to increase direct control on the distribution channels.

Speaker #2: Moving to page 13, Tom Brown revenue split by distribution channel. DTC revenues for Tom Brown were up 11% in Q4, in sequential acceleration driven by the Americas and Japan, supported by some prominent store openings such as New York Madison, Los Angeles Melrose, Palm Beach, and Ginza, Tokyo.

Gianluca Tagliabue: DTC revenues for Thom Browne were +11% in Q4, in sequential acceleration, driven by Americas and Japan, supported by some relevant store openings such as New York Madison, Los Angeles Melrose, Palm Beach, and Ginza, Tokyo. In the quarter, Thom Browne had one net DOS closure in Asia. As broadly discussed during the year, the brand is continuing its activity to defocus from the wholesale channel, reducing volumes injected; thus, the wholesale channel reported a -14% in the quarter and -40% in the full year. As already anticipated, we will continue to see negative performance in the wholesale channel, also in 2026, thus, at a significantly lower degree than the 40% seen this year. Let's now move to the last but not least, Tom Ford Fashion revenue split by channel, page 14.

DTC revenues for Thom Browne were +11% in Q4, in sequential acceleration, driven by Americas and Japan, supported by some relevant store openings such as New York Madison, Los Angeles Melrose, Palm Beach, and Ginza, Tokyo. In the quarter, Thom Browne had one net DOS closure in Asia. As broadly discussed during the year, the brand is continuing its activity to defocus from the wholesale channel, reducing volumes injected; thus, the wholesale channel reported a -14% in the quarter and -40% in the full year. As already anticipated, we will continue to see negative performance in the wholesale channel, also in 2026, thus, at a significantly lower degree than the 40% seen this year. Let's now move to the last but not least, Tom Ford Fashion revenue split by channel, page 14.

Speaker #2: In the quarter, Thom Browne had one net DOS closure in Asia. As broadly discussed during the year, the brand is continuing its activity to defocus from the wholesale channel, reducing volumes injected. Thus, the wholesale channel reported minus 14% in the quarter and minus 40% in the full year.

Speaker #2: As already anticipated, we will continue to see negative performance in the wholesale channel also in 2026, though at a significantly lower degree than the 40% seen this year.

Speaker #2: Let's now move to the last but not least, Tom Ford Fashion revenue split by channel, page 14. In Q4, Tom Ford Fashion reported DTC growth of plus 5%.

Gianluca Tagliabue: In Q4, Tom Ford Fashion reported DTC growth of +5%. This performance reflects a sequential deceleration versus Q3, as already indicated in our prior call, since the higher base of comparison and the decision to place significant emphasis on Haider's first collection in Q3, which has been supported by strong commercial and marketing activation. Let me also anticipate that the brand has started the year positively, benefiting from the very good reception of the spring collection. At the end of December, the number of Tom Ford Fashion DOS was unchanged compared to the one of September. The wholesale channel reported -4% in revenues in Q4, in line with our strategy to strengthen direct control on distribution.

In Q4, Tom Ford Fashion reported DTC growth of +5%. This performance reflects a sequential deceleration versus Q3, as already indicated in our prior call, since the higher base of comparison and the decision to place significant emphasis on Haider's first collection in Q3, which has been supported by strong commercial and marketing activation. Let me also anticipate that the brand has started the year positively, benefiting from the very good reception of the spring collection. At the end of December, the number of Tom Ford Fashion DOS was unchanged compared to the one of September. The wholesale channel reported -4% in revenues in Q4, in line with our strategy to strengthen direct control on distribution.

Speaker #2: This performance reflects a sequential deceleration versus Q3, as already indicated in our prior call, since the higher base of comparison and the decision to place significant emphasis on higher first collection in Q3, which has been supported by strong commercial and marketing activation.

Speaker #2: Let me also anticipate that the brand has started the year positively, benefiting from the very good reception of the spring collection. At the end of December, the number of Tom Ford Fashion DOS was unchanged compared to that of September.

Speaker #2: The wholesale channel reported minus 4 in revenues in Q4, in line with our strategy to strengthen direct control on distribution. On page 15, page 16, you find a summary of the group's store network, which is now composed of 282 directly operated stores for Zegna, 123 DOS for Thom Browne, and 66 for Tom Ford.

Gianluca Tagliabue: On page fifteen, page sixteen, you find a summary of the group's store network, which is now composed of 282 directly operated store for Zegna, 123 DOS for Thom Browne, and 66 for TOM FORD. Before opening to the Q&A, let me conclude with a brief comment on Saks Global. Saks Global filed for Chapter 11 bankruptcy protection on 13 January. Saks is an important partner for many luxury brands, including our group. We are closely monitoring the situation as Saks works to stabilize its operations and to negotiate terms, also with respect to past due receivables, with all vendors, including ourselves. At this stage, these discussions remain ongoing. Their outcome is still uncertain. Our group has the financial and business strength to absorb this extraordinary event, considering the limited incidence of Saks Global on the Zegna Group revenues.

On page fifteen, page sixteen, you find a summary of the group's store network, which is now composed of 282 directly operated store for Zegna, 123 DOS for Thom Browne, and 66 for TOM FORD. Before opening to the Q&A, let me conclude with a brief comment on Saks Global. Saks Global filed for Chapter 11 bankruptcy protection on 13 January. Saks is an important partner for many luxury brands, including our group. We are closely monitoring the situation as Saks works to stabilize its operations and to negotiate terms, also with respect to past due receivables, with all vendors, including ourselves.

Speaker #2: Before opening to the Q&A, let me conclude with a brief comment on SACS Global. SACS Global filed for Chapter 11 bankruptcy protection on January 13.

Speaker #2: SACS is an important partner for many luxury brands, including our group. We are closely monitoring the situation as SACS works to stabilize its operations and to negotiate terms, also with respect to past due receivables with all vendors, including ourselves.

Speaker #2: At this stage, this discussion should remain ongoing. The outcome is still uncertain. Our group has the financial and business strength to absorb these extraordinary events, considering the limited incidence of SACS Global on the Zegna Group revenues.

At this stage, these discussions remain ongoing. Their outcome is still uncertain. Our group has the financial and business strength to absorb this extraordinary event, considering the limited incidence of Saks Global on the Zegna Group revenues. Paola, now, I defer to you the Q&A session.

Speaker #2: Paola, now I defer to you for the Q&A session. Thank you. Thank you, Luca. Thank you, Gildo. And please, can you open the Q&A session?

Gianluca Tagliabue: Paola, now, I defer to you the Q&A session.

Paola Durante: Thank you. Thank you, Luca. Thank you, Gildo. Please, operator, can you open the Q&A session?

Speaker #3: Thank you. We will now begin the question and answer session. If you would like to ask a question today, please do so now by pressing start followed by the number one on your telephone keypad.

Operator: Thank you. We will now begin the question and answer session. If you would like to ask a question today, please do so now by pressing star, followed by the number one on your telephone keypad. If you change your mind and would like to be removed from the queue, please press star and then two. Our first question comes from Chris Huang with UBS. Chris, please go ahead. Your line is now open.

Speaker #3: If you change your mind and would like to be removed from the queue, please press Start and then two. Our first question comes from Chris Huang with UPS.

Speaker #3: Chris, please go ahead. Your line is now open.

Speaker #4: Hello. Hi. Thank you for taking my question. It's Chris from UPS. First of all, congratulations on the very strong results at the Zegna brand DTC.

Chris Huang: Hello. Hi, thank you for taking my question. It's Chris from UBS. First of all, congratulations on the very strong results at the Zegna brand DTC. So I'll actually start with my first question on, on Zegna brand DTC. I was doing some calculations and, you know, looking at the comments you just gave on Chinese consumers, it does seem like the brand, excluding Chinese, accelerated to, in Q4, around high teens percentage growth year over year. Can you maybe confirm if that is, you know, the right understanding? And also connected to that, what is the mood you are seeing year to date in 2026?

Speaker #4: So I'll actually start with my first question on Zegna brand DTC. I was doing some calculations and looking at the comments you just gave on Chinese consumers.

Speaker #4: It does seem like the brand excluding Chinese accelerated in Q4, around high teens percentage growth year over year. Can you maybe confirm if that is the right understanding? And also, connected to that?

Speaker #4: What is the mood you are seeing year to date in 2026? Of course, if we put aside China due to the different timing of Chinese New Year, but I just wanted to understand a little bit more—any color you can give on the start of the year for other markets.

Chris Huang: Of course, if we put aside China due to the different timing of Chinese New Year, but I just wanted to understand a little bit more, any color you can give on the start of the year for other markets. Second question on FX. I think, you know, we've been hearing some of the other peers reporting so far in Q4. So, with the current rates in mind, can you help us a little bit on what kind of FX impact you are expecting for 2026? On a, you know, even margin level, how much of a headwind we should expect? Thank you very much.

Of course, if we put aside China due to the different timing of Chinese New Year, but I just wanted to understand a little bit more, any color you can give on the start of the year for other markets. Second question on FX. I think, you know, we've been hearing some of the other peers reporting so far in Q4. So, with the current rates in mind, can you help us a little bit on what kind of FX impact you are expecting for 2026? On a, you know, even margin level, how much of a headwind we should expect? Thank you very much.

Speaker #4: Second question on FX. I think we've been hearing some of the other peers reporting so far in Q4. So, with the current rates in mind, can you help us a little bit on what kind of FX impact you are expecting for 2026?

Speaker #4: On an even margin level, how much of a headwind should we expect? Thank you very much.

Speaker #2: Okay, so thank you. Thank you for the questions. I think they are both for Gianluca, even if maybe on the first one I'm sure that also Gildo wanted to add some color on the start of the year.

Paola Durante: Okay, so Chris, thank you. Thank you for the questions. I think they are both for Gianluca, even if maybe on the first one, I'm sure that also Gildo wanted to add some color on the start of the year. The first one is on the calculation ex the Zegna DTC, ex Chinese, if it is on the high teens, as calculated, and then on the Forex.

Speaker #2: The first one is on the calculation—X Zegna DTC X Chinese—if it is on the high teens as calculated. And then on the...

Speaker #2: forex. They're good in

Gianluca Tagliabue: You're good in, you're good in math, Chris. Yes, I think it's a, it's a right calculation. In terms of Forex, we have seen 2.6% headwind on currency this year. It's the delta between reported growth and organic growth. We are seeing something similar for the year, so that is our budget, if we, if we expect currencies this way. Of course, part of that can be mitigated by hedging. Of course, we have hedged specifically, very much so Spring 2026. We are already well covered on Fall 2026, but of course, this will fade out. So, there will be definitely an impact also from currency.

Speaker #1: Math, Chris. Yes, I think it's a right calculation. In terms of forex, we have seen a 2.6% headwind on currency this year. It's the delta between reported growth and organic growth.

Speaker #1: We are seeing something similar for the year, so that is our budget. If we expect currencies this way, of course, part of that can be mitigated by hedging.

Speaker #1: Of course, we have edged specifically, very much so, Spring '26. We are already well covered on Fall '26, but of course, this will fade out.

Speaker #1: So there will be definitely an impact also from currency. That's why I think, if you remember, I talked about margin in '26 moving sidelines.

Gianluca Tagliabue: That's why I think, if you remember, I talked about margin in 26 moving sideways, because inevitably, if this is 2, 3 points, it will have partially an implication on the numbers, still partially covered by hedging, but not entirely.

That's why I think, if you remember, I talked about margin in 26 moving sideways, because inevitably, if this is 2, 3 points, it will have partially an implication on the numbers, still partially covered by hedging, but not entirely.

Speaker #1: Because inevitably, if this is 2, 3 points, we'll—implication on the numbers have partially and still partially covered by edging, but not entirely.

Speaker #2: And let me color on the start of the year, excluding China, that Chris is saying now. We know that the Chinese New Year is having an impact on.

Paola Durante: Any color on the start of the year, excluding China, that Chris is saying, now we know that the Chinese New Year is having an impact?

Speaker #1: Okay, so Chinese New Year doesn't need to be remembered, but last year it was the 29th of January. This year, it's on the 17th of February. So, comparing January to January, we are up against the peak season of last year.

Gianluca Tagliabue: Okay. So Chinese New Year, I don't need to remember, but last year was 29 January. This year is on 17 February. So, comparing January to January, we are against the peak season of last year. So if you isolate, if we isolate the effect of the calendar of Chinese New Year, we don't see a trend significantly different in DTC, of course, from the one of Q4 2025.

Speaker #1: So if you isolate—if we isolate the effect of the calendar of Chinese New Year, we don't see a trend significantly different in DTC, of course, from the one of Q4.

Speaker #1: 2025. Any

Paola Durante: Any color by market?

Speaker #2: color by market?

Speaker #1: Well, we see a resilience in America. America keeps beating. One market in terms of our number of percentage growth followed by the Gulf area, and I think Europe is doing pretty well.

Gildo Zegna: No, we see a resilience in America. America keeps being our number one market in terms of percentage growth, followed by the Gulf area. I think European, you know, is doing pretty well. So we just are past January, and I think that January is following the trend of Q4. So far, so good.

Speaker #1: So we just are past January, and I think that January is following the trend of Q4. So, so far, so

Speaker #1: good. Thank

Paola Durante: Thank you. Chris, if we answer, shall we move to the second?

Paola Durante: Thank you. Chris, if we answer, shall we move to the second?Thank you.

Speaker #2: You. Chris, if we answer, can we move to the second? Thank you.

Gildo Zegna: Thank you.

Speaker #3: Thank

Operator: Thank you.

Speaker #3: Our next question comes from operator Anthony Charchavji with BNP Paribas. Anthony, please go ahead.

Paola Durante: Operator?

Operator: Our next question comes from Anthony Charchafji with BNP Paribas. Anthony, please go ahead.

Speaker #4: Yes. Thank you. Good morning. It's Anthony from BNP Paribas. First question would be on Zegna retail and the productivity that is now quite close to €20,000 per square meter.

Anthony Charchafji: Yes, thank you. Good morning, it's Anthony from BNP Paribas. First question would be on Zegna retail and the productivity that is now quite close to 20,000 per square meter. I think you're targeting close to high single digit improvement per year. Can you just remind us the key drivers here? And also remind us the rollout of your new perfume in for the Zegna brand, and what impact could it give for full year 2026? My second question would be on the profitability indication probably for this year, if I may.

Speaker #4: I think you're targeting close to high single-digit improvement per year. Can you just remind us of the key drivers here, and also remind us about the rollout of your new perfume for the Zegna brand and what impact it could have for the full year 2026?

Speaker #4: My second question would be on the profitability indication, probably for this year. If I may, the consensus is at around €173 million, and if you see some upside or not given the strong DTC. And my third question—and I'm a bit sorry to ask about SACS—but really curious to know your exposure at group level. You have a few shop-in-shops for specialty Zegna and Tom Ford.

Anthony Charchafji: The consensus is at around EUR 173 million, and if you see some upside or not, given the strong DTC. And my third question, and I'm a bit sorry to ask about Saks, but really curious to know, yeah, your exposure at group level. You have a few shop-in-shops for especially Zegna and Tom Ford, I think. And on top of revenues, maybe an indication on the inventory exposure, and if there is, yeah, anything to flag in terms of potential provision or how we should model this. Thank you.

The consensus is at around EUR 173 million, and if you see some upside or not, given the strong DTC. And my third question, and I'm a bit sorry to ask about Saks, but really curious to know, yeah, your exposure at group level. You have a few shop-in-shops for especially Zegna and Tom Ford, I think. And on top of revenues, maybe an indication on the inventory exposure, and if there is, yeah, anything to flag in terms of potential provision or how we should model this. Thank you.

Speaker #4: I think, and on top of revenues, maybe an indication on the inventory exposure and if there is anything to flag in terms of potential provision, or how we should model this.

Speaker #4: Thank

Speaker #4: you. Ciao,

Paola Durante: So Anthony, yes. So the first question is on Zegna productivity and the key drivers for this year and also going forward. So for sure it's for Gianluca as much as the perfume rollout, which has just started, in any case, so very early. Sorry, the second question, did you ask consensus 2026 or 2025?

Speaker #2: Anthony. Yes. So the first question is on Zegna productivity and the key drivers for this year and also going forward. So for sure, it's for Gianluca as much as the perfume rollout, which has just started in any case.

Speaker #2: So, very early. Sorry, the second question—did you ask consensus for '26 or '25?

Anthony Charchafji: '25.

Paola Durante: EBIT to 2025, okay. And Saks exposure. I think they're all really for Gianluca.

Speaker #2: Even '25. '25. Okay. And SACS exposure—I think they're all really for Gianluca.

Paola Durante: EBIT to 2025, okay. And Saks exposure. I think they're all really for Gianluca.

Gianluca Tagliabue: So the Zegna DTC, you said it's on the EUR 20,000 per sq m. Of course, that is one driver of growth for not just for 2026, but for the three year, so. And the drivers so far and will continue to be mix and price, price mixed together. Of course, we have been elevating the offer successfully, and it's keep on growing. So for instance, now we have launched a new version that is the nubuck version of Triple Stitch, which goes in the same direction. We are intensifying the density of the collection of Vellus. More will come through the year. So mix will continue being the driver of our growth, together with events, which means the activations that we are doing above and beyond the stores.

Speaker #1: So the Zegna DTC, you said it's on the €20,000 per square meter. So, of course, that is one driver of growth not just for '26 but for the three-year, so—and the drivers so far and will continue to be mix and price, price mix together. Of course, we have been elevating the offer successfully and it keeps on growing.

Speaker #1: So, for instance, now we have launched a new version that is the numbered version of Triple Stitch, which goes in the same direction. We are intensifying the density of the collection of Veluzaro.

Speaker #1: More will come through the year. So mix will continue being the driver of our growth together with events. Which means the activations that we are doing above and beyond the stores.

Gianluca Tagliabue: The Villa Zegna is a perfect example, but there are some that are less visible, which are suites or trunk show. So that world of elevated offering, elevated moments, is the main driver, so, of our increase of productivity.

Speaker #1: The Villa Zegna is a perfect example, but there are some that are less visible, which are suites or trunk shows. Elevated offering, elevated moment is the main driver.

The Villa Zegna is a perfect example, but there are some that are less visible, which are suites or trunk show. So that world of elevated offering, elevated moments, is the main driver, so, of our increase of productivity.

Speaker #1: So, of our increase of productivity, Zegna Friends—from a client perspective, you see this reflected in the growth, which is very positively double-digit on Zegna Friends.

Gianluca Tagliabue: Zegna Friends are from a client perspective, you see this reflected in the growth, which is very positively double digit on Zegna Friends still in 2025, and will be continually doing so next year, while we not only foster the already existing Zegna Friends, but as we have exposed in some of the recent meetings, we are targeting what we call the doers, that are the clients that are slightly lower the threshold Zegna Friends, that we want to then elevate and bring them into the threshold of Zegna Friends, which I recall is some clients that are spending for EUR 50,000 per year with us.

Zegna Friends are from a client perspective, you see this reflected in the growth, which is very positively double digit on Zegna Friends still in 2025, and will be continually doing so next year, while we not only foster the already existing Zegna Friends, but as we have exposed in some of the recent meetings, we are targeting what we call the doers, that are the clients that are slightly lower the threshold Zegna Friends, that we want to then elevate and bring them into the threshold of Zegna Friends, which I recall is some clients that are spending for EUR 50,000 per year with us.

Speaker #1: Still in 2025 and will be continuing to do so next year. While we not only foster the already existing Zegna friends, but as we have exposed in some of the recent meetings, we are targeting what we call the doers—that is, the clients that are slightly below the threshold of Zegna friends that we want to then elevate and bring into the threshold of Zegna friends, which, I recall, is some clients that are spending $50,000 per year with us.

Gianluca Tagliabue: In terms of consensus, the one that you mentioned, I think for 2025, the EBIT, it is reasonable, of course, pending the effect of a bad debt accrual that is linked to Saks' Chapter 11 evolution. So if you isolate that, yes, it is reasonable. We need to take into consideration, which is something we cannot do today because we are monitoring the evolution, and we will continue doing so right until March, when we publish the numbers, what is the situation and the needed, but the accrual that we have to book?... which is, of course, something that is extraordinary, and it's affecting the exposure. You mentioned inventory. I think it's not an issue of inventory. It's a question how much we need to accrue in terms of bad debt. Inventory is not an issue because it's more on the credit side.

In terms of consensus, the one that you mentioned, I think for 2025, the EBIT, it is reasonable, of course, pending the effect of a bad debt accrual that is linked to Saks' Chapter 11 evolution. So if you isolate that, yes, it is reasonable. We need to take into consideration, which is something we cannot do today because we are monitoring the evolution, and we will continue doing so right until March, when we publish the numbers, what is the situation and the needed, but the accrual that we have to book?... which is, of course, something that is extraordinary, and it's affecting the exposure.

Speaker #1: In terms of consensus—the one that you mentioned—I think for 2025 EBIT it is reasonable. Of course, pending the effect of a bad debt accrual that is linked to SACS Chapter 11 evolution.

Speaker #1: So, if you isolate that, yes, it is reasonable. We need to take into consideration—which is something we cannot do today because we are monitoring the evolution, and we will continue doing so right until March when we publish the numbers—what is the situation and the needed bed depth accrual that we have to book.

Speaker #1: Which is, of course, something that is extraordinary, and it's affecting the exposure. You mentioned inventory. I think it's not an issue of inventory. It's a question of how much we need to accrue in terms of bed depth.

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Q4 2025 Ermenegildo Zegna NV Earnings Call

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Q4 2025 Ermenegildo Zegna NV Earnings Call

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