Ermenegildo Zegna N.v. · NYSE:ZGN
Ermenegildo Zegna — 3Q 2023 Earnings Presentation
35 slides from Ermenegildo Zegna's earnings presentation, Oct 24, 2023
Slide 1: 3Q/9M 2023 Revenues
3Q/9M 2023 REVENUES October 24, 2023 3Q 2023 and 9M 2023 Revenues are unaudited. DATE 1
Slide 2: Disclaimer
DISCLAIMER Non-IFRS Financial Measures Zegna’s management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: adjusted earnings before interest and taxes (“Adjusted EBIT”), Adjusted EBIT Margin, revenues on a constant currency basis (Consta
Slide 3: Ermenegildo Zegna Group
Ermenegildo Zegna Group “Our results this quarter continue to showcase the broad-based strength of our three brands and the successful execution of our strategy. | am particularly pleased that we are performing well across a diverse set of regions, as the balance of our geographic mix provides resil
Slide 4: 3Q 2023 Selected Highlights and Recent Events
3Q 2023 SELECTED HIGHLIGHTS AND RECENT EVENTS ZEGNA THOM BROWNE Our Road to Iconicity Our Road to 2X Revenues • ZEGNA to take over retail distribution in • Published monograph celebrating Thom South Korea (15 stores) from early 2024 Browne’s legacy • The Elder Statesman Cashmere collaboration • Sign
Slide 5: Group Key Highlights
GROUP KEY HIGHLIGHTS 3Q 2023 Revenues1 9M 2023 Revenues1 €431 million €1,334 million +20.8% YoY +22.9% YoY +25.0% cFX2 +24.8% cFX2 +11.3% organic2 +19.2% organic2 Guidance / Outlook By end-FY2025 Capital Markets Day Annual revenues to exceed €2 billion December 5, 2023 Adjusted EBIT Margin3 to reach
Slide 6: Group Revenues
GROUP REVENUES • 9M 2023 revenues of €1,334 million • +22.9% YoY • +24.8% YoY in cFX • +19.2% organic growth • 3Q 2023 revenues of €431 million • +20.8% YoY • +25.0% YoY in cFX • +11.3% organic growth • Zegna and Thom Browne revenues continue to grow in the third quarter, Tom Ford Fashion consolidat
Slide 7: Revenues by Segment
Ermenegildo Zegna Group REVENUES BY SEGMENT
Slide 8: 3Q 2023 and 9M 2023 Revenues by Segment
3Q 2023 AND 9M 2023 REVENUES BY SEGMENT ZEGNA THOM BROWNE TOM FORD FASHION 3Q 2023: €298 million 3Q 2023: €74 million 3Q 2023: €75 million (+3.0% YoY, 12.7% organic growth) (+6.3% YoY, 8.5% organic growth) April 29 – September 30: 139 million 9M 2023: €950 million 9M 2023: €282 million (+10.4% YoY,
Slide 9: Revenues by Geography
REVENUES BY GEOGRAPHY Ermenegildo Zegna Group
Slide 10: 3Q 2023 and 9M 2023 Revenues by Geography
3Q 2023 AND 9M 2023 REVENUES BY GEOGRAPHY North America APAC 3Q 2023: €111 million (+44.2% YoY, +45.0% cFX and +12.3% 3Q 2023: €158 million (+3.5% YoY, +11.7% cFX, organic growth) +5.4% organic growth) 9M 2023: €285 million (+34.4% YoY, +32.6% cFX and +14.9% 9M 2023: €547 million (+16.0% YoY, +20.9%
Slide 11: Revenues by Product Line
REVENUES BY PRODUCT LINE Ermenegildo Zegna Group HONUEE LH EHOMOREDE EL A OOHNG EU HOHE 1 bk ek bb heheheh bet hak de Libebatatiie ) otetie hibit diode dea ede
Slide 12: 3Q 2023 and 9M 2023 Revenues by Product Line
3Q 2023 AND 9M 2023 REVENUES BY PRODUCT LINE 9M 2023 REVENUES BY PRODUCT Zegna-Branded Products: +8.0% YoY in 3Q 2023, +20.6% YoY in 9M 2023 LINE Third Party • Shoes overperforming, representing ~15% of 3Q 2023 revenues Brands * • Luxury leisurewear and Made-to-Measure up strong double-digit 2% Tom
Slide 13: Revenues by Channel
REVENUES BY CHANNEL Ermenegildo Zegna Group
Slide 14: 3Q 2023 and 9M 2023 Revenues by Channel - DTC
3Q 2023 AND 9M 2023 REVENUES BY CHANNEL - DTC Strong double-digit organic growth in the first nine months across ZEGNA and Thom Browne DTC 9M 2023 DIRECT TO CONSUMER • €282 million in 3Q 2023 (+ 29.9% YoY, +12.9% organic growth) REVENUES • €865 million in 9M 2023 (+34.2% YoY, +24.6% organic growth)
Slide 15: 3Q 2023 and 9M 2023 Revenues by Channel - Wholesale
3Q 2023 AND 9M 2023 REVENUES BY CHANNEL - WHOLESALE Up high single digits organic in both 3Q and 9M 2023 9M 2023 WHOLESALE • €148 million in 3Q 2023 (+6.6% YoY, +8.1% organic growth) REVENUES • €466 million in 9M 2023 (+6.4% YoY, +9.9% organic growth) Zegna-Branded Products • €47 million in 3Q 2023
Slide 16: Mono-Brand Store Network
MONO-BRAND1 STORE NETWORK Zegna • 12 net DTC network openings in 9M 2023 compared to end-2022, wholesale store network reduced by 2. • Notable expansions include new Sankt Moritz boutique and 6 additional Nordstrom wholesale stores in the U.S. Thom Browne • 17 stores moved from wholesale to DTC with
Slide 17: Outlook
OUTLOOK Ermenegildo Zegna Group J
Slide 18: Outlook
OUTLOOK* By 2025 • Revenues to exceed €2 billion • Adjusted EBIT Margin to reach at least 15% • 3Q revenues confirm the Group remains on this trajectory Assuming no further future escalation of the war in Ukraine, no significant macroeconomic deterioration, no further disruption linked to the COVID-
Slide 19: Upcoming Event: Capital Markets Day December 5th, 2023
UPCOMING EVENT CAPITAL MARKETS DAY DECEMBER 5TH, 2023 NEW YORK STOCK EXCHANGE 19
Slide 20: g E} = ‘Ob zs E ca
3 g E} 3 = ‘Ob zs E ca
Slide 21: Appendix
APPENDIX 21
Slide 22: Group Revenues by Segment (Unaudited)
GROUP REVENUES BY SEGMENT (UNAUDITED) 22
Slide 23: Group Revenues by Segment (Unaudited) - Reconciliation Tables
GROUP REVENUES BY SEGMENT (UNAUDITED) Reconciliation Tables The tables above show a reconciliation of revenue growth for the nine months ended September 30, 2023 and for the three months ended September 30, 2023 to organic growth for the same periods by 23 segment and at the Group level.
Slide 24: Group Revenues by Product Line (Unaudited)
GROUP REVENUES BY PRODUCT LINE (UNAUDITED) 24
Slide 25: Group Revenues by Product Line (Unaudited) - Reconciliation Tables
GROUP REVENUES BY PRODUCT LINE (UNAUDITED) Reconciliation Tables/1 The tables above show a reconciliation of revenue growth for the nine months ended September 30, 2023 and for the three months ended September 30, 2023 to organic growth for the same periods by product line and at the Group level. 25
Slide 26: Group Revenues by Sales Channel (Unaudited)
GROUP REVENUES BY SALES CHANNEL (UNAUDITED) The table above shows a reconciliation of revenue growth for the nine months ended September 30 to organic growth for the same period by sales channel and at the Group level. 26
Slide 27: Group Revenues by Sales Channel (Unaudited) - Reconciliation Tables /1
GROUP REVENUES BY SALES CHANNEL (UNAUDITED) Reconciliation Tables /1 The table above shows a reconciliation of revenue growth for the three months ended September 30 to organic growth for the same period by sales channel and at the Group level. 27
Slide 28: Group Revenues by Sales Channel (Unaudited) - Reconciliation Tables /2
GROUP REVENUES BY SALES CHANNEL (UNAUDITED) Reconciliation Tables /2 The table above shows a reconciliation of revenue growth for the nine months ended September 30, 2023 to organic growth for the same period by sales channel and at the Group level. 28
Slide 29: Group Revenues by Geographical Area (Unaudited)
GROUP REVENUES BY GEOGRAPHICAL AREA (UNAUDITED) 29
Slide 30: Group Revenues by Geographical Area (Unaudited) - Reconciliation Tables/1
GROUP REVENUES BY GEOGRAPHICAL AREA (UNAUDITED) Reconciliation Tables/1 The tables above show a reconciliation of revenue growth for the nine months ended September 30, 2023 to organic growth for the same periods by geographical area and at the Group level. 30
Slide 31: Group Revenues by Geographical Area (Unaudited) - Reconciliation Tables/2
GROUP REVENUES BY GEOGRAPHICAL AREA (UNAUDITED) Reconciliation Tables/2 The tables above show a reconciliation of revenue growth for the three months ended September 30, 2023 to organic growth for the same periods by geographical area and at the Group level. 31
Slide 32: Non-IFRS Financial Measures
Non-IFRS Financial Measures Zegna’s management monitors and evaluates operating and financial performance using several non-IFRS financial measures including: adjusted earnings before interest and taxes (“Adjusted EBIT”), Adjusted EBIT Margin, revenues on a constant currency basis (Constant Currency
Slide 33: Non-IFRS Financial Measures
Non-IFRS Financial Measures Constant Currency Revenues. In addition to presenting our revenues on a current currency basis, we also present certain revenue information on a constant currency basis (Constant Currency), which excludes the effects of foreign currency translation from our subsidiaries w
Slide 34: Glossary and Definitions
Glossary and Definitions (1) y o y: used to refer to year on year growth rate. All growth rates are at actual currency (2) Growth rates in this presentation are year on year unless specified differently (3) cFX growth: means growth at constant currency. For the description of constant currency calcu
Slide 35: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Investor Relations / Group Communications / Media Francesca Di Pasquantonio / Clementina Tito ir@zegna.com / corporatepress@zegna.com 35