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| Statement |
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| Last Europe, I think that has been a very hot summer not only for the climate, but also for the retail and we are seeing good productivity gain |
| That's why we are growing strong also from way also to Saudi |
| And we are seeing -- on the opposite, we are seeing good result beyond Hong Kong and Macau, but also in the rest of Asia |
| And I must say that the staff, we have renewed the staff of our shop immensely and their outreach is the highest that we reached in America and they're doing a fantastic job to reach out to customer in their office and whenever they are around the world or at home and they come back |
| So if we look on a two-year stack; some nationalities like Americans, like Middle Eastern, like Latin Americans, like Southeast Asia; we see ballpark doubling so the tremendous success of the brand strategy across the board and also Europeans probably they didn't reach the doubling level, but had a significant step-up |
| We are a stronger player today and thanks to our strong management team, we have been sharpening our execution |
| I must say that even Southeast Asia had a good go this first part of the year and we surely want to become stronger in that part of the world since we have not penetrated yet the market as we could |
| While the recovery in Mainland China may be milder than expected, our business in different markets remain very healthy |
| And I can tell you by meeting several landlords, we remain positive mid- to long term on China |
| But as I said, we remain positive on the midterm comeback of the entire region |
| Operating in the [indiscernible] segment, our customer continue to demand the highest quality in products and Zegna, Thom Browne and TOM FORD; all offered the best quality across all categories and style we operate and showing sign of resilience across the board |
| So all the levers are helping us to elevate the average ticket |
| But the bulk of our growth comes from the substantial increase of our store productivity and we're very, very pleased to say that we are well ahead of the plans we shared with you, which I will recall for you were of 50% increase by 2025 in store productivity |
| I think we see a good traction on that |
| I think that it's important to stress this incredible resilience superior than our expectation in particular by the American customer |
| The adjusted EBIT margin grew from 11.3% last year to 13.3% in the first half of 2023 reflecting the success of the brand strategy, the store productivity is the main factor |
| And I'm particularly proud of the significant increase recorded by the Zegna segment profitability as the segment adjusted EBIT margin rose by 310 basis point to 15.4% reflecting the strength that I have just described, which led the group's adjusted EBIT margin to enjoy a 200 basis point jump to 13.3% even though we are investing for growth |
| We just had an incredible event in Los Angeles with Elder Statesman cashmere and very, very exciting in terms of innovation, in terms of welcoming new customers |
| We also recorded strong profit in the first half of the year reaching EUR52.1 million, an increase of 147.9% year-over-year from EUR21 million last year |
| The continued execution and success of our strategy is evident across all the profitability metrics |
| The overall profitability improvement reflects our pricing strategy, reflects the well ahead of the curve improvement on the DTC store productivity, which is a particular area of focus for us and the fact that there is a positive scale on industrial fixed cost by the effect of the growth |
| The improvement in our gross margin is a direct result of the group's strategy, including the strength of the DTC channel, which carries a higher margin compared to the wholesale channel |
| But is the number of potential new customer reached and the strength of the brand that we can capitalize together |
| As you saw from our revenue when we shared them back in July, the first half of this year showed that our brands continue to resonate strongly with customer worldwide |
| So if three years ago we said okay, our distribution in Europe is broad enough, we think that we can open more stores over there and so overall a positive thing |
| As Gildo mentioned earlier, the group saw robust revenue growth over the past six months in both constant currency and organic growth, respectively at 24.7% and 21.5% |
| So the Zegna segment saw 23.8% organic growth year-over-year mainly due to market share gains we witnessed as a result of the execution of our Zegna One Brand strategy while Thom Browne segment grew 13.6% thanks to a combination of store expansion and positive comps |
| Both segments recorded significant outperformance in the DTC channel highlighting the strong customers' response to our products and collection |
| We also saw a positive impact on our revenues after the first consolidation of TOM FORD FASHION segment, which occurred at the end of April with EUR64 million in two months and a few days |
| We are quite pleased to report the progress we have made in the profitability over the course of this year so far |
| Statement |
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| So we have seen some nationalities extremely exploding for us |
| And in this last weeks, some softer performance |
| The past year has been marked by a dynamic operating environment, which has made many of us around the world more cautious about our outlook on Mainland China |
| And as Gildo was mentioning, its Mainland China the area of softness |
| As an Gianluca said and I repeated, yes, there is some sign of softness in Mainland China I would say surely in this quarter because the first six months have been quite strong |
| Price repositioning; reduction of end of season sales as part of the Zegna One Brand elevated strategy, which started with its rollout of Fall/Winter '22 collection prior year; the higher incidence of essential products, which carry a longer lifetime on the shelves and so therefore, a lower burden of obsolescence; higher absorption of industrial fixed cost |
| Let me pick again on the softness in China |
| The minor decrease in adjusted EBIT down 0.1% from last year to EUR31.5 million compared to EUR31.6 million was due to cost associated with the store network expansion, which we expected to see and some strengthening of central costs in a phase of consolidation of the growth of Thom Browne |
| On the Chinese cluster, we are seeing Chinese cluster so wherever they spend compared to 2021, we are seeing a flattish year-to-date situation with a softer appetite on the third quarter than the average of the year-to-date |
| We do believe that the Real Madrid effect is there |
| Q4 looking ahead was a quarter last year for us very much affected by closing stores |
| I wanted to follow up on your comments around some softening that you're seeing in China |
| By the way for our brand, it's not so -- as you might see for other brands, it's not so huge |
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