The Ermenegildo Zegna Group continues to evolve and in 2023 it should start to be chargeable for your entire Tom Ford trend enterprise.
In November, Estée Lauder Cos. Inc. mentioned it was buying the Tom Ford model in a transaction that valued the corporate at $2.eight billion. As a part of the deal, the Zegna Group and Marcolin entered into long-term license agreements for Tom Ford trend and Tom Ford eyewear, respectively.
Zegna has held the license for Tom Ford menswear since round 2006, however with this deal the corporate is venturing into new territory as it should produce and distribute all menswear and womenswear, equipment, underwear, high-quality jewellery, youngsters’s clothes, textiles and design merchandise for the house.
Zegna’s 20-year license settlement with Lauder permits for computerized renewal for an extra 10 years. As a part of this transaction, Zegna is buying the operations of Tom Ford’s trend enterprise.
Led by Chairman and CEO Gildo Zegna, the Italian menswear big has been shedding an increasing number of pores and skin, first with its acquisition of a majority stake in Thom Browne in 2018 after which itemizing on the New York Inventory Change. in December 2021. That very same 12 months. , joined forces with Prada to purchase a majority stake in cashmere agency Filati Biagioli Modesto SpA. The Zegna group has been steadily constructing its personal textile provide chain, buying majority stakes in corporations akin to Tessitura Ubertino, a number one producer of ladies’s materials top quality; at Pelle Tessuta, which focuses on leather-based weaving; and at Cappellificio Cervo, a historic Biella-based males’s hat model, amongst others. This sturdy provide chain constructed through the years will be funneled into the Tom Ford enterprise.
The acquisition of Tom Ford’s trend operations is anticipated to create synergies for Zegna, which additionally held a 15 p.c stake within the firm, and permit it to strengthen its womenswear section. Gildo Zegna is anticipated to create an appropriate construction to drive the event of the model.
Unveiling the deal, Zegna described Tom Ford as one of many “world’s most iconic and distinctive ultra-luxury manufacturers” and mentioned this subsequent step aligns completely with its technique. “We’ve been companions and shareholders within the Tom Ford trend enterprise since its inception and I’ve labored with Tom for a few years and think about him a valued good friend,” added the manager. “This transaction is our first since our itemizing on the New York Inventory Change in December 2021 and confirms our dedication to leveraging our platform to create worth for all of our stakeholders.”
That mentioned, questions on the way forward for the Tom Ford model with out its founder are swirling. Underneath the settlement with Estée Lauder, Ford, the founder and CEO of his namesake model, will proceed to function its inventive visionary after the closing and thru the top of calendar 2023. Domenico De Sole, president of Tom Ford Worldwide, will stay as a marketing consultant to by way of that interval, too. Tom and Dom’s partnership has been a formidable one, going again to their days at Gucci, however there may be nonetheless no visibility into the potential improvement of the inventive and managerial group below Zegna.
The deal is actually according to Zegna’s bold plans.
In Could final 12 months, on its first Capital Market Day, the group revealed its medium-term monetary targets, with the aim of income exceeding 2 billion euros and adjusted working revenue reaching at the least 15 p.c. p.c of earnings.
Within the three months ending September 30, the Zegna group reported unaudited income of 357 million euros, 27.5 p.c greater than the earlier 12 months. Gross sales within the first 9 months of 2022 reached 1,090 million euros, 22.9% greater than in the identical interval of 2021.