Ermenegildo Zegna (ZGN) 26 Aug 222022 Q2 Earnings call transcript

Hello, everyone. And warm welcome to today’s Ermenegildo Zegna Group First Half Results Webcast. My name is Melissa, and I’ll be your operator today. [Operator Instructions] I now have the pleasure of handing over to your host, Francesca Di Pasquantonio, Director of Investor Relations. Francesca, over to you.

Melissa. much, very you Thank And welcome Group June to Zegna us XXXX. everyone results for joining financial ended today the discuss to six XX, months

We on material the will earlier website today. posted be using our presentation

Tagliabue; find Browne, Zegna; Investor of joined and and under by our can press Today, Chairman Rodrigo Group Gianluca Group page the the COO the with You related and along and Thom release Zegna website. Bazan. Zegna CEO of I’m material CEO, CFO, Ermenegildo

high at recent results provide our spend have through will walk will Browne. the strategy and and Gildo updates cover business guidance time numbers At will discuss time Rodrigo end ambition. level, for and -- the First, the will and of Q&A. then Thom we going the and through Gianluca call,

I to make that we begin, statement our we out need call. may during point forward-looking certain Before

turn materially uncertainties, may forward-looking to those Our and risks statements. be discussed refer filings. you such I or these a statements and All actual Gildo. different Harbor are subject in that, the our Again, including on today’s implied of thanks of by two SEC from results such call is joining governed and which those number expressed this for us, to page presentation will will language. to included I be statement the Safe call by with

terms this macroeconomic and the And say revenue the confirmed context. Real and terms we margin. I and strategy I has another Wednesday, and first in think what we brands and around we milestone July war key our and the year customers an we Maybe of satisfied both icons. that highly must and I the will is Yeah. of half a well this of which in [inaudible] milestone project, was One despite one performed step continue Northwest must a recent must the believe want for half to quite new world amplify Real and milestone call Brand Madrid. to of was with the chase our strength recent complex a Madrid, in Board. had Centennial in by Brand, dynamic results, company target that which which the product the Italy, forward where year, corridor [ph] the with show with results in announced that strategy are that enhancing the we and rebranding of two launch first over be we also And where In of I the our geopolitical to the of in And year value Zegna been by say which recognizable our One incredible after XXXX, and of the say the of store the the layer it launched our

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in region. €XXX margin million unfavorable the which some loans Our CFO, and the the and country despite the cost will Gianluca. cash mix EBIT up step there Brand adjusted later in Greater our weaker up surplus of to the outflows, cash One by XX-basis-point described planned ticked China from been be XX.X%, despite by We’ve investment paying

key which gives that strategy. you through just slide go slide five of If you know to we core our go that to takes project highlights our well and you you the very and can before six,

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Day sustainability XXXX to that really history just In mention over XXX three sustainability-linked which ESG, years we of future. if fleet. submitted those marked a which now our for in we I recall did and the as to Market is plans, we SBTi growth half the green tremendous strategy, important that problem, and story, and May, means Made August in growth is Capital think we the commitment XX% first during we announced a that well this see XXXX, agreements chapter up and the going in we our Italy COVID brands in know, another chain good. I XX% explained, and the by affected supply gone but hence and all is was, working which particularly, in up These Made have means platform strong our Italy July the Textile mobility number our financing shared are say to important a we we I we is out car in last are Third-Party in with very with capacity months. very, very, target want you few later Gildo really our came chapter responsible and as That as really forward. of background. a of you very of in through and our is

of have XXXX. We XXX% vehicles approximately reaching electric hybrid XX% the fully by or journey corporate plug-in to

this On in despite some of profitability. we by of must with margin, half and So in on One step from revenue rate progress happen the of Mainland global planned strategy global despite a I and with China eight, have XXXX on in the delivered some slide of increase deployment a would EBIT and mid-term is XX% step that we say in news quarter driving you and good these highlights Brand revenue excluding quarter achieved. operational say are second And points been and environment, first the that, strong that, shows I also first growth key disruption improvements the updating XX% the XXXX. our of profitability the we like the costs growth restoration, XX.X%

solid double-digit our the also in and back on Okay, of the acceleration Greater growth start half including of progressive China, a in QX, August. first

for execution to think good also continue that May, strategy We by talk of on I revenue of One are to call. the improve Day able which track million margin on priority. achieve of of targets adjusted the And our the in believe we in our more And at in Brand Capital continuing the detail Market that our year we XXXX, you and those decided we order strategic to €X guidance will are full deliver will we -- the and a recall be on which shared achieve or I to XX%. target stick mid-term EBIT to

category. are to Made I interesting. a to Thom store, out And power both generation capability execute priority. products our to well I strengthening, real market our a Textile the working -- surely have not reaching growth, leverage the need Italy order pricing time least, a are it’s on scale, the younger our the in really on is historic of geography I on think specialization look digital other in more to an potential to strategy opportunities able number retail to being but chain, approach. fibers which Browne, and think we think, that improvement on the And we our to on to Platform, a our mix make will and or that we in going last in and is sure And by lean footprint value organic omnichannel new supply product of from Luxury and a improve we around opportunity exploit expansion of a becoming increase new development. word that

are application Zegna a and we Thom efforts getting way time throughout this and is Brown, Browne. better developed which again have better say Zegna the this and both must new We better for Value to create a getting better, I Thom outreach platform proposition to and both our and in see is Client Management that,

at take performance. think who of and other through can you. the some that give Thank on I Gianluca give slides details the I point to this baton our you current you more will

the together with will you, everybody. XXXX. drive our you through on the cash, morning, well Today, Gildo. Thank revenues, journey Gildo, good profits, guidance Good as of afternoon, I for

or Greater at look affected of course, let’s XX, across China the -- store channels, good page we closures. know, as by across mid-March €XXX First, The lines Region, million. achieved excluding XX%, end was segments from revenues the GCR, performance May the of regions, to which and plus group

isolate given the Group which, for this the skewing of to we numbers. phenomenon, importance the look China also what Greater So is

we first look global positive was the in to on excluding were XX%, in quarter revenues numbers China quarter tourists rebound and particular quarter. XX% that Let’s the at Western a of Greater return see the compared the consumers, a trends first the with compared XX% Region second domestic up to Europe. accelerating with see We

in terms level, XX was a up step to at Second, over costs, but step EBIT, of year. in the related of margin was segments revenues of look basis X.X% from of X.X%, up logistic and the the amplification the adjusted are EBIT few same XX.X% also at €XX.X million last in basis in both X period we up with the slight some up margin central despite to If One Zegna points Brand. the XX%, points was and

margin but million was investment people. in still On the year. XX% Thom Browne Profit part, million came slightly to the moving from the the the year, down growth due €XX very of at last essentially, €XX to EBIT phase sales good, first half XX% and was for of and down growth in in stores

was value the €XX the reassessment a negative so value dollar when favorable in of So of stronger having Browne the the with of good that with was liability liability the is X% put report that the together stake of €XX option million] in of XX% first XXXX Thom Browne which the impact dollar and this outcome lower than related This Browne’s much therefore we at and This (sic) is the subsequent half that was both income the is -- euro. the to in year, up million of year than that put liability liability, own having is of last in Thom purchased million financial Group €XX expenses the books. million. of the the that due the a the compared financial the the which performance currencies the of profit given Thom in Browne by not increase Thom EBIT does a result value down XX% the [€XX the on option

was €XXX surplus June drivers million versus impact end million a XXXX. temporary Our trade at of this cash end move the inventory. are, main see we of working The where €XXX on capital,

was Gildo XXXX Fall/Winter remember, first in launched you If One July. collection the we saying, Brand

second stuff. was of China. end months out go And in So two of were lockdown the we lot June, of with gate ready the that of straight to

coming march. inventory the will on China some the order of price to any over disturbance full not we create So month in carry in in the

Settlements, reserved Real of. already and for Second, Estate taken funds covering Estate were had Real the the already care had We expenses we Settlements. accrued

been three this those to a isolate we excluding paid optimization. It the minority, store we was one-off factors the that footprint positive factor. increase. the major settling Again, Dividend focus capital discipline impact. order of settlement thing flow, and cash working reflect temporary on we surplus trade see and and consider that as that locations deem We the deem P&L we have can not increase cash in the so again, the to the

page a more Thom first in and to it’s go Browne see China. that key world, we of new Europe, of Zegna and revenues points COVID let’s rest in like the XX measures So enjoyed the growth continue affecting half a U.S., here few snapshot and Greater

For the power healthy more Zegna and with pricing particularly it downs the the price more this do and of with on repositioning the mark has together was see where that organic, we comes business. discipline, offer, the the been

attention from Spring/Summer and which -- segment. were by solid May. for very revenue to was call page second both Selling performance, solid the XX, here positive We If successful. we new maintains orders, the Browne Thom which responsive the Wholesale very broad Zegna If been dynamics, to with have from based Wholesale offering, the forward, Fall/Winter Wholesale the the the lockdowns see and deliver, a look new the to Browne again appeal we to brand we campaigns Zegna, despite XXXX and starting mid-March environment. spring a XX on quarter strategy which I same have was customer you seen move July out for Tom

[inaudible]. And deposition product, luxury we Zegna it’s collection of addition that was also our plus of making to focused comeback in shoes, the positive On have strategy rebound half in leisurewear And continues Textile all under of and branded growth This the particularly the of in a first the was shoes rebound Zegna we and of the saw and the strongly This to a of XX% segments which leisurewear XX%. In to half, activities, Europe was contribute the remember million the but the and seen I is enjoyed year half. result this strong now brands, with U.S. which XXXX first measure half, the to Zegna to back also running on strongly. perform segment. tailoring through we side, Tmall, those e-commerce Third-Party we the continuing in fall the BXB Zegna, a to a plus go if growth degrees lines launched XXX and on first last €XXX fast, with are we close lines, to when second at the in

the of first this first anniversary half didn’t is where the last the of year So Tmall. against half we have year

XX -- increased spilt Let’s didn’t move Thom let’s significantly. Tmall Page geography, we to Browne. by on have revenues

As the the month explain XXXX. China revenues on the of The I except for are June is June of month a standalone Greater of month reasons out basis? DTC What said, June higher in is all with to important we’ll breakout call of geographies, region. the than

to-date also So good to trend, we easing with both the territory out, DTC, after and a QX of the compared on and only our June restriction have double call exit and the QX in rebound XXXX for was the after are July month. till that of the China In restrictions, in digits power we can relaxation way June this particular, Thom that Greater important August. we business from the Region the is e-commerce we seen brick-and-mortar in positive continuing retail rebound seeing on stores increasing Browne speed are our down positive

by it We is line geography. the product view. that to think can go I

up which consumers to down Browne, The see was of Europe. up performance Group XX%, by second openings X%, the quarter. you were and with even first the resumption of the particularly retail strong Zegna rate see network for branded concentrated underlines not first the quarter. strong double-digit DTC also product total Zegna XX% by more impacted DTC are Zegna the compared product Thom driven both also was in healthy and quarter, seasonal retail hear the kind driven by Similar China, in the by first the lines it’s we territory growth the last let’s in we to GCR extremely Again important Again, in compared quarter, see Browne Western GCR. and the the quarter was in understand lockdowns. from first by excluding of teens branded by factors for you XX% to DTC we plus network half in Thom of revenues this Thom to local compared X%. the was the evolution, all branded and here second see XX% net product classical explained, you branded retail Browne the and XX% about by impact double-digit. growth you solid double-digit, X% in products second China remember lockdowns in deliveries percentage. XX%, success need to In but the on XX%, last strong limited demand brands in performance megacities retail in and the were the this quarter behalf region when Browne double-digit compared Here of by and the you sales second DTC of were product This to were influenced half Zegna. driven XX, plus also, organic of affected in up client. of finally, DTC figure a we Greater that when When Gucci particular, talk year. up Thanks is excluding June I and of by DTC Thom store Tom high overall growth QX, Zegna the Textile Page XX% the by contribution produce year. sales is line, positive second with quarter. and representing the tourists Ford of particular, channel, Third-Party to three in on in XX%. products products

seen and Browne. forward, before, the have positive in change look at XX%. trend, where timing delivery. Wholesales I has There acceleration need seeing retail both been second think, Zegna we of to the no June, month of rebound we looking I in quarter, are good for As a Thom the the a said we

Wholesale only when this for this So business you the and and see sales, of Zegna for of the back reflects from Russia the sales cancellation would shipments a The Russian double partners. X%, driven been minus digits is new July. that Browne. of positive of the the good we we have direction reception Thom Fall/Winter start If out reflecting orders in territory collection by our Wholesale

is adjusted a very to that marketing to drivers because not detriment adjusted to €XX margin in margin year, up and one, expansion Moving square brand all we related million the and Zegna at page the up step going meter. spend content, year. basis dollars fab higher addition €XX leverage, move -- to down with side. dealer scale, dynamic, XX, are surprise, of of of up industrial we these to improvement of course, China the and the on of million, stores now margin The terms amplify the product Those numbers richer versus segment, two Browne time direction the a new X.X% XX, we from and these per other than the running X.X% order in costs unfavorable the the course, are, permits, of in because XX EBIT, listing EBIT, of part, million of these price, happy Page XX.X% in central to anticipated, full improvements sell-through fixed positive full was the Thom the we Wholesale last our and the €XX positive of plus a key points. capacity, pricing cost things; more Zegna brand are the are the factories increase at productivity offset up awareness last

compliance. are Of generating terms there cost a topline higher on before, terms needed value of I the I Page EBIT is all advertising much I scale in absolute is compensating of the This the were the that not go, in mentioned costs, segment related as operating up okay. leverage, is percentage that cost and on here XX, to is to I organic Browne would while Thom terms personnel as all Quickly strengthening course, growth June the out positive significant year -- adjustments, phenomenon have of explaining on the recap stores of a year. store from end to functions we Page to lot call the that the business adjustment at I XX Headquarter to of this numbers explained. XX spend had last growing in pricing don’t on time of the the of of for expansion and we had XX combination. to relative positive effects, revenues.

operating that EBIT Now, and the the the the I and call adjusted similar. or out reported profit costs profit adjusted look very

reported So we are back of to to conciliation normal situation in terms a of exporting adjust. making

delivered. go move to been think the to XX. I all that comments we of XX. page page page this If also think has page I I

in Revenues year the and growth this €XX X% we to region expect year million We in in this the continue of invest our X%. X%. half first CapEx of land at strategy, to more

big Rodrigo store of second is, the on the lineup there also are some year. second Zegna side of half on there the year half of there the a is and mentioned, in actions So

up considering merchandising So repeat -- launch and inventory I the we are for carrying the fresh as stock of the in at the working year, unsold over. we trade China, is June and on of which mind have phenomena end are Greater more to the capital we brand related going the than the X% should especially X%

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consequence, low-teens actual guidance versus revenue growth mid-teens raising at As our XXXX. to full year exchange are XXXX from we a rate

adjusted increase industrial and in listing and improvement surplus in And year’s and in increase the expected logistics, with the mitigate with step EBIT, tailwinds solid overheads a in the the expect second EBIT this, of as half. related together should range rebranding. the we costs topline also up in in cash last We margin adjusted the expect

all that mentioned. of deterioration to war I unforeseen and normalization the Greater macroeconomic geographic decided end, or deterioration the the the assuming of no in in further Now significant reason guidance continuing COVID-XX Ukraine events. for and we extension a But this and no have China revenue pandemic other at raise no the

I think, to this highlights couple details. at more for turn Gianluca a point, I of and

Thank Gildo. you,

So disruption, were or that was explained why person can at behind the chart compare At the Greater will the we EMEA remotely assumptions end to be for comparison, range. at it than that. one of in we the help luckily easing At in XX, the mid-teens number believe and we Day. making for we summer so happening. I’ll where China can U.S. We low-teens, point, mind. be the you time, higher the had for this assumption it had the we May you This in refreshed & that it which Capital the Markets a we XXXX. XX%. in present guidance year believe the the page around in so is the out from of ones was the that mind

we are in that, be full the delivered looking have more Thanks than order ready we XXXX XX%. see to that mind Browne collection time have Spring the to around the also in in what we brand before XXXX, Gildo double-digit Zegna mind we number. go. now we and XX%, we XX% and the now around For now at had than at have are we Thom more to said,

this all we declare we the the margin in last solid in improvement mid-teens a in to the growth us we margin and a let terms, qualify solid year bottomline the demand. consider we on improvement now So need look declare and that adjusted this adjusted year. at We a improvement costs it the and a of in see range step-up -- year EBIT we absolute EBIT see central

these presentation. for range costs. for hand us EBIT adjusted reasons to for one This for with I’ll the I everybody to the of the Q&A. thank we that of the margin just year’s one-time stick back and it in think you up So an -- and conclude these And last joining Francesca up step to

you, Thank of time, can for Thank we’ll you open session. the please this Gildo. lots Gianluca. Operator, you, Q&A Thank have Q&A. At time you.

Of question Instructions] first Our you. course. UBS. comes [Operator to Tibaldi Susy, of over from today Susy

so strong questions. have Hi. questions a I you on results. my congratulations much set few Thank very a for of and taking

because that flow news been months situation macro negative a now And if August, was you commented was performance of So on qualitative the luxury But one to feeling of you helpful. first any way you I would wondering be at from are that consumer strong. July it’s of the point on be the already very but the course, is and and all, behaving, more continuing everything? several the is change in view, very the of lot of a sector and seeing suffice if is

So I just you. also to wanted from hear

any behavior see at You little something change the to all in more would bit that fragile. starting maybe a become that suggest consumer can

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strong You now order books. visibility have very in

bit So subscribed a conservative. volume, bit, it on seem a it seems that a is little helps so does bit you’re like conservative it

very country to just this there specify so levels back, continue it a year higher? like marketing spend is we the the not last and again QX in differs be mix for you positive what as if again, is margin, check year have to just to margin. you I assumptions So Then your as be -- result can should you this these expect of So expect was can kind your what the that so kind level been sounds trends said wanted China and is are marketing marketing, in you and to it should now the strong. which of range it’s specify because helping so will and bad

cautiousness lines you you little guess implying on how questions a bit your guidance? so HX these I of are are So into much. Thank the much

Many questions?

you this. Thank for

[Inaudible]

Yes. All right.

[Inaudible]

Okay.

the on So global financial the whether current is Gildo, start question the consumers I situation with think, market actually? impacting

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change and to deeply an flow. EMEA, a few in Europe, just the least and attraction on America amidst want for customer by States, number at North America I However, new customer. also want work we just and by or incredible both particular, they and newness have the seen talk They of United current more shop can

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doing again, expectations. our than better are, are we we So

will in we what see all all a overall that So trend continue. Gianluca? we positive trend the and offer

message your conservative the key are point. So think, that in not the you’re first the question, guidance? you correctly, was, underlying I sure If understood that’s I

course, been But that terms cautious Of we QX but China the that on mid is by to assumptions giving is We channel. in guidance not volatility into account in mid-teens specific year. -- off the by there we guidance guidance. disclose last have putting take underlying don’t market without numbers, detailed need far the

will be QX teen, consider our close mid-teens happening, outlook. you that to XXXX. understand if up journey marketing on the little is different. will enjoy marketing, the in in Day step we Then, point when we Capital journey, believe that ready a that, why Greater the a than China were was X the we year, up Market happen XXXX to in step project fair you in that retail by declared we this is question representation against IPO marketing, But assumption, in might the we call last higher So it of adding

all that the that course, consider put hold, didn’t because China, the year, we are activation this since of we anything for half were the restrictions planned of marketing first and were So up year, amplify on running.

as Real heavily the cashmere of Madrid. we’ve So are now, we’ll September, we campaign start from amplifying now

extra with is changed be X finalized and spending. X.X the So will marketing up the journey year of point step not spending of next the

the Gianluca. margin guidance, And

things guidance, year as margin as the half for conservative QX XX%, might have our different the I similar last the said, to than is Greater on China plus on XX different have is assumption be bps very we we first and full in combined. sorry, two revenues, considering compared If That a the been in bottomline. also, are Again, we revenues the explicit I behind. I said to wanted QX year. on And And different the the margin China, assume margin. what’s

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does that Susy And answer?

Yes. all much you Very clear. to of you. Thank so

next you. we for you, Thank ready Susy. are question. Operator, Thank the

Perfect. Thank you.

John, So our comes over you. of question from Guy today to John next Jeffries.

Thanks very much, Gildo…

Hi, John.

taking my Thanks …and Francesca. for to Gianluca, questions. Rodrigo and

XXXX that to in first the unique to years? the going Thom space then one end I a you think of around first you say markdown Could assets is is had Thanks. little investments on that brands you forward, but versus that on of to And made reduced season of sales side, those, you XXXX? would the quantify fair of have what your for you percentage you that’s you what confirmation be I think a at relative The That’s Are markdown just I the of you And do look reduction. were said, Thom do that to would like marketing just stores? for great? XXXX. the of end by think sales it’s start talk about the first across to that Made a more question the the eliminate if pretty half bit question. Do Zegna expansion Browne Italy. my think And both manufacturing step-up assets sustainable and you’ve you Browne next could and over in that, peers, going with contribution add to on other portfolio three you when able

Thank you, John.

Let Gildo. me start. John. Hi, It’s

and then same Gianluca the the With and to part. on in Thom for lead Browne one to the lockdown last we Rodrigo

a shift delivery. have honest with lead in on God because we that say, up the in are exceptional that And which they be is the material, trouble, performed seen the not we’re did has are we chain or really the in in thank long Made in platform, Made make supply we one would are textile with you to there Italy have a that’s expect why I they I order textile production. the we we Italy, the and doing think and running joint this for quite Now which the result -- part, and site, split material is, the are to two, works not the

to of we more And mean, be very the to fact And seen have have a no the private we control the they in the supply we summers. creative emphasis diversified very to textiles. it’s especially are winter, chain they in I So particular seasonal, base from thankful have have the have that textile full use. in

likely So be the chain that telling describe we chain, are the something finally do on to we able are I’m which making the so looking want point working scale chain. so won’t strengthen that plant that added is we textile I so. -- more are is we think to are -- supply that the actually in I things, the small we on but to be you to will order we to each

the On parts side, some that probably the in raised and Italy, our are brands are luxury. our Made of we fact new increasing we Italy other in

you than If content that. maybe is want becoming more of also power, delivery

any our comments keep open If to don’t you and compare Made in potential ears outside, acquisition, have that. we Italy I related

yes, to strengthened to and are watching our could overall, we So, capability, what be interesting platform. see

Gianluca?

to, confirming of our reduction So, the markdowns is forecasts markdowns the by was advanced. that on first

essentials the across very that we it markdowns markdown, continuity policy product year, are incidence low single-digit. XXXX Wholesale. the extend From to was in of on on the half we the in low first XXXX no not talking fall markdown the the on we From of we’re very, and planning the and boutiques in of So Board is the e-commerce, start channels.

position. So context a in to luxury the this is confirmed moving of

In you… terms Did think, you I of something. asked marketing,

Yeah. and… He asked about Thom Browne

Thom Browne.

of will Rodrigo give and …the the composition three answer.

Yes.

are contribution this shops in amount and XX year. May the further additional we’re end are total me in to introduce around plan we its of strategic franchises presentation, want be to by as you stores, space envisioning this that limited, where of the XXX is Browne, address the actually to roughly stores because they we Thom during stores, going If

of is format additional contribution important the looking the of the it’s right changing network. DTC So a management, and store that’s and have clients focused of much clients within growth a of meters value client, we’re to are model. including the more the we retail that square influence limited very significant store we’re much And our why we there for have, double not project on model, of or right focus of but amount client the more clients for the stores, tools amount the we brand, growth us, our where

answer does your this question. John,

Browne clear which the both yet terms Yes. the I been with for question the the part Thom quantification Zegna on addressed investments That’s in guess hasn’t very year. millions stores. to in first only is do to of the of and half made the of

So for investments stores, investments cetera, across the things of people, made investments made, et brands? both additional in marketing, numbers, Thanks. in made investments what like incremental those additional are the

was lower So, the personnel see P&L, the topline. the growth from a cost that you the there can than of growth terms overall was investments, both on in of

tell there to year than year. region by I the are are in you, market. are disclosing cost has -- increasing year that’s nature course, the in the for -- year the so of we in increasing for next or mid-teens, and the the why we XX%, we been increase plus is marketing Of XX%, next -- not this more this region year, plus expectation

and what XXXX to year also next disclosed stick idea. more of will give year This SEC more XX%. the compliance we XXXX don’t. XX%, XX%, every year plus So you an to I in and be need to is marked, XX% what the we

hints give you I’ll So of our model some then.

there marketing part up the not of against SEC that step and it was this some definitely has So compliance. been step-up the

but that were I drag So of the the last half was -- listed terms increase, we year of known cost be company. of first in in cannot in central last number more specific

didn’t compliance. some So Directors Exchange. it’s to the didn’t that we of York New linked Stock SOX have and have costs, serve insurance the We the the to like,

Browne the in Thom than disclosed, Browne and that of relocation X%. Zegna we the it remainder it In more, we adding there Overall, now will it’s be store for the for terms to of the it’s addition coming Thom year to can of close stores of stores is next opening. consider is CapEx, will lots CapEx coming which we definitely concentrated for are of for they This is to is years. will and is you openings, And renewals see footprint need years. you the be Thom rate X% the the XX said, year, at and nine do probably year, that end disclose, this more in also might years. coming that this a replicate store be Thom we Browne opening expect of for need stores the that Browne growth trend

opening. mind number could store have is more you in rebranding. So Zegna of terms Zegna, renewal and that in

to stores. consider mean with need logo far under rebranded have so XX new You a that we

will to is network renew We be year the carry the spaces, possible to in the the also lines. force together task lines, to end often to more and this of another the complete the we will reduce new now by tune order to also opportunity entire square where more for in with almost carry take optimize store have year the That collection entirely the three And with we meter don’t rebranding the rebranding. done. we

Absolute, Gianluca. That’s very clear. Gildo. Thank you,

Thanks.

Thanks, John.

would October. Have Melisa, XXth Thank results call. a We to the like attending announcement everyone to our good next you, and for QX will revenues of day think, you the thanks we close and be John. I on again thank everyone. today’s

everybody. you, Thank

call today. the everyone. you, This Thank concludes

disconnect You may now your lines.