Peter Hawkings - Designer, Creative Director of Tom Ford

[LadyJunon]

You have too much faith in this guy!

He’s already made that iconic velvet suit so annoying. He hasn’t proven nor shows the potential to offer a fashion moment. The time to have done so would have been during his debut. And all he’s shown is that he’s capable of a meek revision of Tom’s signature looks— on a cast of kidz with no presence, like every other brand out there. Absolutely no distinction. I’ve mentioned this before, but the branding is very much awkward super rich kidz raiding their much cooler parents’ wardrobe and failing to convince anyone that they’re as cool as their parents. When Tom debuted under his own name, the cast of confident women of superstars, legendary models and not meek girls in his reliable Gucci/YSL signatures with a slight vintagey vibe was all that was needed for a fashion moment without even trying.

The S/S campaign is a tepid step in the right direction. But again, the casting simply drags it back a few steps. A more mature cast instead of banal children would have elevated the imagery. The kidz whom are drawn to the brand will come whether you desperately pander to them or not. And showing respect to the reliant older customer whom have always supported the brand, whom have grown up with his Gucci/YSL/Tom Ford by casting older models— whether vets or newer older faces, would give the brand a timeless and authentic heritage— and still be able to snatch that 2 billion projection.

I agree on a lot of things you said but at the same time, this is a weird time.
Even if he started working in fashion in the 80’s, Tom Ford access to stardom started 30 years ago. We have been used to his aesthetic for 30 years and now we are witnessing a change of generation and the building of an heritage brand in front of us…

I don’t expect it to be strong right away. And I don’t necessarily expect this to speak to me in a way that Tom Ford by Tom spoke to me. I love the Gucci / YSL years. They have shaped my taste. I loved the Tom Ford by Tom Ford days…And they were highly controversial. I have at least 1 item from almost every collection, even if on paper you wouldn’t associate Tom Ford the brand with my style.

I think we would want a John Galliano at Dior kind of situation but maybe the company, in order to establish itself need a Marc Bohan. And I’m totally fine with it.

They chose Hawkings because menswear is the most established category for the brand. In an ideal world, they would have had a separate designer for the womenswear and my choice would have been Alexandre Vauthier.
But the brand needs a singular vision.

Maybe Hawkings will surprise us but I don’t expect the brand to be though provoking, pushing taste or being a leader in terms of fashion conversation.

At least, I know the integrity of the house will be preserved.
And in a way, going back to the spirit of the Gucci days will allow him to be more free with the heritage quite contrived of Tom Ford the brand.

The casting for the show and campaign were quite good by today's standards, but I do agree that Tom Ford would benefit from casting older models from the Gucci/YSL era, imagine a show with Werbowy, Omahyra, Mariaclara, Kebede, Supernova. I imagine that it would be harder to find the guys Ford used to work with as the Slimanification of menswear axed the whole generation.

Hawkings is definitely here to act as a Bohan, but that makes that makes it all the more important to create a strong brand identity that can evolve over time. Dior was worse off by the end of Bohan's tenure, because the 50s aesthetic aged horribly. By Arnault's acquisition, the house was surviving on parasitic licensing.

While Vauthier would be great at Tom Ford, I'd prefer him at Alaïa. Personally, I'd try to poach Vaccarello from Saint Laurent. Vaccarello claims to inspired by Ford, while Ford has expressed admiration for Vaccarello's YSL. Of course, we'd need a separate CD for menswear, which defeats the purpose of Zegna's strategy for the brand.

 

[Lola701]

The casting for the show and campaign were quite good by today's standards, but I do agree that Tom Ford would benefit from casting older models from the Gucci/YSL era, imagine a show with Werbowy, Omahyra, Mariaclara, Kebede, Supernova. I imagine that it would be harder to find the guys Ford used to work with as the Slimanification of menswear axed the whole generation.

Hawkings is definitely here to act as a Bohan, but that makes that makes it all the more important to create a strong brand identity that can evolve over time. Dior was worse off by the end of Bohan's tenure, because the 50s aesthetic aged horribly. By Arnault's acquisition, the house was surviving on parasitic licensing.

While Vauthier would be great at Tom Ford, I'd prefer him at Alaïa. Personally, I'd try to poach Vaccarello from Saint Laurent. Vaccarello claims to inspired by Ford, while Ford has expressed admiration for Vaccarello's YSL. Of course, we'd need a separate CD for menswear, which defeats the purpose of Zegna's strategy for the brand.

Vaccarello is limited technically… And considering that Vauthier was supposed to join Tom Ford at YSL, it would be a nice full circle moment.

While I don’t mind having Liya Kebede or Carmen Kass or other people from time to time on the runway, I don’t want the brand to be an all and all nostalgia-based brand.

Hawkings is already revisiting the past. The campaign, his official first has a nice modern nod to the Gucci SS1998 campaign. Do we need on top of that old models to come back?

A new generation seems to be into 90’s/00’s Tom Ford. It makes sense to have a cast that can relate to them in a way.

I’m really approaching Hawkings vision with an open POV. Let’s see what happens. He only did one show and one campaign.

 

[Nimsay]

Tom Ford parting his own company out after seeing first hand what happened to YSL is surprising. Tom spent a lot of time putting it back together.

vauthier is wrong for TF. vauthier - with his Parisian Glam - is appropriate for YSL. Tom has always been Manhattan Glam.

 

[Phuel]

^^^ Tom’s way more of an internationalist with his sensibilities collectively than just be relegated to only Manhattan glam; that’s more accurate for a career span of someone like Michael Kors.

As hard as I am on him, Peter’s offerings that are slight variations of the Tom Ford label era are fine enough as separates. If one wants to be wowed by innovation, then Tom Ford has long ceased to be that brand to expect it from, as it’s matured to catering to a made-to-measure kind of customer. If Peter keeps on the current trajectory in terms of merchandise and made-to-measure, the brand will do just fine (Tom Ford bags have always been on the cheesy side, so maybe work a tad harder in that department… The RTW generally looks reliably expensive and luxurious, and assuredly maintaining that Tom Ford signature status quo. …But WTF with the childenswear… LOL

It’s the branding that’s a disappointment. In 2023, when every show is a headcount of skinny, pubescent-looking guys and their skinnier girlfriends, it’s just become so common. Not expecting— not wishing for the Supers and Glamazons of Tom’s Gucci/YSL era to return: There’s no need to see Amber and Jon fronting Peter’s Tom Ford. Just to see Lola’s fav Binx (because if they’d like to carry the tradition of the Tom Ford’s Gucci fembot army, Binx carries that ideal iciness exquisitely), and women and men of a similar look, fronting Tom Ford would be refreshing these days.

Interview with Tom from the recent GQ:


GQ UK

 

[Lola701]

^^^ Tom’s way more of an internationalist with his sensibilities collectively than just be relegated to only Manhattan glam; that’s more accurate for a career span of someone like Michael Kors.

After all, the ultimate Tom Ford woman is a French woman…Even if the average Tom Ford womenswear customer is probably an American.
But yes, his kind of glamour has always been more international. A mix of American and French fashion, always. That has always been very constant in his design language…

Michael Kors is a pure product of American sportswear.

Tom Ford bags have always been on the cheesy side, so maybe work a tad harder in that department…

But WTF with the childenswear… LOL

I have 4 handbags but their line is weird to the point of confusion…Even more considering that they never pushed them on the runway. They are doing better in footwear even if Hawkings runway heels looked a bit safe. Tom Ford is like Christian Louboutin. I feel like women expect a touch of danger from them. So the footwear should reflect that.

I was confused by the Childrenswear but I remember that Tom launched a childrenswear capsule of motorcycle jackets years ago.
It’s weird considering the brands image but if it exists in stores without a proper communication (campaigns and stuff) around it, it can work.

And I guess Zegna want to duplicate somehow what they are doing with Thom Browne but pushing it further (or backwards…Because high jewelry was already there in the inception of the brand).

 

[style_expert]

Maybe because there have been so many disappointing and wrongly executed examples of a CD change at other brands recently, I find the Tom Ford process quite satisfactory so far.
They're definitely going for a more organic evolution and not a 'revolution' which I think is just right for the brand. While it was well defined, I found the original Tom Ford branding/visual communications somewhat lackluster and lazy at times so there is a lot to be gained there in the first place.
I have to applaud them for taking it step by step forward while preserving and staying true to the aesthetics of the brand. The first show and now the campaign are quite strong as the first outings of Peter, especially the campaign photography by Robin Galiegue and the art direction are a major improvement.
The future could be very bright indeed if managed well and I guess Zegna is the right partner for that.

 

[Phuel]

After all, the ultimate Tom Ford woman is a French woman…Even if the average Tom Ford womenswear customer is probably an American.
But yes, his kind of glamour has always been more international. A mix of American and French fashion, always. That has always been very constant in his design language…

Michael Kors is a pure product of American sportswear.

I have 4 handbags but their line is weird to the point of confusion…Even more considering that they never pushed them on the runway. They are doing better in footwear even if Hawkings runway heels looked a bit safe. Tom Ford is like Christian Louboutin. I feel like women expect a touch of danger from them. So the footwear should reflect that.

I was confused by the Childrenswear but I remember that Tom launched a childrenswear capsule of motorcycle jackets years ago.
It’s weird considering the brands image but if it exists in stores without a proper communication (campaigns and stuff) around it, it can work.

And I guess Zegna want to duplicate somehow what they are doing with Thom Browne but pushing it further (or backwards…Because high jewelry was already there in the inception of the brand).

LOL Rich middle-aged gheyz dressing their babies like Tom of Finland…

Childrenswear makes sense, of course. As will Tom Ford petwear… The faithful that have been there since his Gucci days, and now has a (growing) family; buying for their husband— and kids/dogs. Which is a strong sign that the offerings will be all about the premium quality of wear and not chasing fashion statements, and the aesthetic won’t be radically shifting all over the place. And it’s good enough that the luxe materials like the croc skin and croc-stamped leathers, look appropriately sumptuous in the usual Tom Ford rich palette— unlike... that Chanel offering. And it’s this I’m grateful that the Tom Ford label is still very much remain Tom Ford. (...Meanwhile, over at Chanel, there’s no mistaking that it’s Virginie: Frumpy, dumpy, homely, matronly, sad, depressing, and just basic, topped off with that stale, moldy easter egg palette. I can smell the mildew, musty, dusty attic somewhere in Coronation Street all over at Chanel. It really takes a special kind of "talent" to cut dresses/coats/suitings that give models a tubular, stout body, with no waist— just boobs and legs. And leathers that look like trash bags, to boot. She really is OOAK LOL)

 

[Nimsay]

Not stout models!!

I just think TF clothes are still very polarizing Just recently (this past weekend) while helping a friend shop for a gala gown we shopped TF. Anyway the only dress options were exposing ribcage or full length thigh. one was just a gorgeous shade of purple. tom does colors so well. who is the woman buying a 7k stripper dress... I wouldnt mind them with a LV or DG catsuit under. Anyway we settled on a Ralph Lauren ofc...

Well I think that to be chic you have to be international. so TF is very international but everyone who is chic is too. TF is like Halston to me. Ultimately influenced by NYC skyscrapers with the shiny materials, long vertical lines, minimal ornamentation except at the ends... caftans seem to be an analog for a megalithic skyscraper like empire state building or One 57 St

 

[reese06]

It's been a while since Tom Ford himself made a significant impact in the fashion scene, so I'm finding it hard to grasp the expectation for Peter to bring about such a moment, especially considering it hasn't been a focal point of the brand's identity, at least at the very beginning.

Unlike the dramatic changes brought by Alessandro at Gucci or Maria at Dior, the brand doesn't require a major disruption but just needs to be revised. The recent images on Instagram and the ad campaign already reflect a slower but noticeable evolution and they are smart to proceed this way.

Currently, the brand lacks appeal beyond its fragrances for the younger demographic. To achieve their sales target, expanding their reach to accessories and ready-to-wear is crucial. The branding on the women's bags is terrible. Loud in a brash and outlet kind of way. I know they can do better.

As someone not fond of Timothee on any front, I won't delve into that discussion. However, I sincerely hope he doesn't become a brand ambassador.

I don't own a Tom Ford suit and there was a time when owning one was aspirational for me.

However, my interest waned over the years as the brand lost its appeal. Peter has now sparked my interest again and I'm intrigued and interested in saving up to own one maybe.

They absolutely need to update the styling and merchandising of the website because i detest how the women are styled. The hair and make up is atrocious for a selling standpoint. It actually looks like an insane woman decided to dress up in Tom Ford. maybe I'm being a bit dramatic.

 

[LadyJunon]

It's been a while since Tom Ford himself made a significant impact in the fashion scene, so I'm finding it hard to grasp the expectation for Peter to bring about such a moment, especially considering it hasn't been a focal point of the brand's identity, at least at the very beginning.

Unlike the dramatic changes brought by Alessandro at Gucci or Maria at Dior, the brand doesn't require a major disruption but just needs to be revised. The recent images on Instagram and the ad campaign already reflect a slower but noticeable evolution and they are smart to proceed this way.

Currently, the brand lacks appeal beyond its fragrances for the younger demographic. To achieve their sales target, expanding their reach to accessories and ready-to-wear is crucial. The branding on the women's bags is terrible. Loud in a brash and outlet kind of way. I know they can do better.

As someone not fond of Timothee on any front, I won't delve into that discussion. However, I sincerely hope he doesn't become a brand ambassador.

I don't own a Tom Ford suit and there was a time when owning one was aspirational for me.

However, my interest waned over the years as the brand lost its appeal. Peter has now sparked my interest again and I'm intrigued and interested in saving up to own one maybe.

They absolutely need to update the styling and merchandising of the website because i detest how the women are styled. The hair and make up is atrocious for a selling standpoint. It actually looks like an insane woman decided to dress up in Tom Ford. maybe I'm being a bit dramatic.

As I said earlier on, it just seems like Hawkings is simply stripping off the "trashy" aspect of Ford's aesthetic. Focusing on the intimacy and sensuality without the "bombasticality".

My only issue is that it feels a bit too serious and straight-laced for Tom Ford. A drop of occasional decadence wouldn't hurt. Maybe that's simply due to his background as traditional menswear designer based in London.

The bags are definitely lacking, the ones in the show included. Since Zegna Group wants to take the "quiet luxury" route, it would be smart if they traded the TF logo hardware for something more exclusive like the "Carine" hardware some of their current bags have.

As for the stores merchandising/styling, it's a consequence of blinding following the look from the runway. Maximalist styling, dramatic hair and heavy makeup can make for a strong impression for shows/adv campaigns, but it can be so visually oppressive when used in a retail setting.

 

[Lola701]

The bags are definitely lacking, the ones in the show included. Since Zegna Group wants to take the "quiet luxury" route, it would be smart if they traded the TF logo hardware for something more exclusive like the "Carine" hardware some of their current bags have.

The Natalia and the Jennifer are the bags are used the most and I definitely like the fact that beyond not being seen everywhere, they are the types of bags I can go to work or professional events without them screaming « money ». The same reason I only carry the 2.55 or the Rejane instead of the Timeless classic or the loud quiet luxury Hermes ones (that I don’t own anyway) when I’m in a professional setting.

I have remarked that men in professional setting, maybe because they offers those bags to their wives, have a different demeanor to women who carried Birkin and Kelly in professional settings. They kind of don’t see them as equals weirdly.

 

[LadyJunon]

The Natalia and the Jennifer are the bags are used the most and I definitely like the fact that beyond not being seen everywhere, they are the types of bags I can go to work or professional events without them screaming « money ». The same reason I only carry the 2.55 or the Rejane instead of the Timeless classic or the loud quiet luxury Hermes ones (that I don’t own anyway) when I’m in a professional setting.

You must have very good taste in bags, the Réjane is absolutely beautiful. I really love bags like that, where the "branded element" is an unique design feature rather than a logo.

I have remarked that men in professional setting, maybe because they offers those bags to their wives, have a different demeanor to women who carried Birkin and Kelly in professional settings. They kind of don’t see them as equals weirdly.

It's misogyny. And I'm saying this as a cis man. The saddest thing is that it implies that they don't see their wifes as socially equals either.

 

[Phuel]

Not stout models!!

I just think TF clothes are still very polarizing Just recently (this past weekend) while helping a friend shop for a gala gown we shopped TF. Anyway the only dress options were exposing ribcage or full length thigh. one was just a gorgeous shade of purple. tom does colors so well. who is the woman buying a 7k stripper dress... I wouldnt mind them with a LV or DG catsuit under. Anyway we settled on a Ralph Lauren ofc...

Well I think that to be chic you have to be international. so TF is very international but everyone who is chic is too. TF is like Halston to me. Ultimately influenced by NYC skyscrapers with the shiny materials, long vertical lines, minimal ornamentation except at the ends... caftans seem to be an analog for a megalithic skyscraper like empire state building or One 57 St

Was your friend dead set on a gown? Could she be convinced to go for a women’s tux for the next event? Or even a women’s tuxedo pant worn with a men’s suit jacket? Separates have always been a strong offering from Tom, so that as much as a look can flex "Tom Ford", the always reliable and abundance of separates offerings can be easily, and discreetly mixed and matched to create an individual’s own style and needs.

As I said earlier on, it just seems like Hawkings is simply stripping off the "trashy" aspect of Ford's aesthetic. Focusing on the intimacy and sensuality without the "bombasticality".

My only issue is that it feels a bit too serious and straight-laced for Tom Ford. A drop of occasional decadence wouldn't hurt. Maybe that's simply due to his background as traditional menswear designer based in London.

Absolutely. Resembling the lovechild of Tom and Terry aside, Peter’s personal style is on the tacky side of sartorial dressing— but he just doesn’t seem to know it. So his version of Tom Ford as an image is too careful, too contrived, and too precious to the point of soulless merchandising ripping off a greater vision. Tom always knew how to walk that razor-sharp line between refinement and vulgarity; between the blueblood and the vamp; between the bourgeoisie and the rebel. There was always a fearlessness to be tacky alongside being effortlessly sophisticated. That’s a hard line to walk and even he faltered and stumbled at it in his later years. I’m glad he’s self-aware enough to be aware of his slipping Midas touch to know when to bow out of this industry. Frida Giannini would be that ideal fit for Tom Ford womenswear designer without the need to rely on Gucci nostalgia, because looking back, even if her presentation had no strong vision, her separates were consistently solid. And her understanding of bags and footwear always was so impressive. But she seems to be over designing these days and more satisfied with her philanthropy.

Timmy seems to bring all the girls— and some women and men to his backyard with his milkshake, so I get why brands are pursuing him so aggressively, as overrated as he is, as most of these actors are That’s potentially quite a profit pushing the more accessible lines of cosmetics/fragrances/eyewear/intimatewear with Timmy as the posterboy for all these. The Tom Ford brand could do a lot worse with an ambassador.

 

[Lola701]

@Phuel you lost me at Frida Giannini…
Don’t make me remember her pants! You cannot be serious lol

 

[reese06]

@Phuel you lost me at Frida Giannini…
Don’t make me remember her pants! You cannot be serious lol

Awwww, @Lola701 hahahaha.... They were awful but I can forgive because on the men's front, her men's Riding pants from Spring/Summer 2012 are some of the best pants I've ever owned.

I bought a pair and thanks to the secondary market have owned multiples and wore them until the seams have literally busted.

 

[Nimsay]

I find that most women don't like peaked blazers. That is a very limited customer. The only jacket most women like are Chanel or Dior jackets.

 

[LadyJunon]

Tom Ford tomorrow at 20h00:

The show will be streamed on Instagram and the official website.

 

[Lola701]

Those previews got me a little bit scared…

 

[LadyJunon]

The extended preview shows part of the collection:

 

[LadyJunon]

Information concerning the performance of Zegna, the parent of Tom Ford's fashion division (TF specific information will be highlighted in red).

Zegna Group Closes Stellar Year, Chairman Confirms Guidance Eyeing Further Growth
Gildo Zegna sees potential in all of the group's brands as the company continues to streamline wholesale distribution and creates a managerial structure for Tom Ford Fashion.

By LUISA ZARGANI
APRIL 5, 2024, 12:53PM

MILAN — Closing what he considers “a stellar and milestone year,” Gildo Zegna, chairman and chief executive officer of the Ermenegildo Zegna Group, is looking ahead to 2024 with confidence.

The group, which comprises the Zegna, Thom Browne and Tom Ford brands, last year more than doubled its net profit, which reached 135.7 million euros, compared with 65.3 million euros in 2022, on revenues that rose 27.6 percent to 1.9 billion euros.

“I am positive in general on all the group’s brands,” the executive told WWD in an interview on Friday, saying he expected first-quarter revenues “to grow in the region of 10 percent at constant exchange rate.”

The group is strengthening its “retail culture,” continuing to streamline its wholesale accounts, and Zegna believes “passing from a transaction to a relation is fundamental in the high end range.” For this reason, the first quarter will see the biggest impact from the rationalization of wholesale, he pointed out.

“Organic performance is expected midsingle-digit negative due to wholesale revenues expected to be down high double digit. Starting from the second quarter and going more into the second part of the year, we are expecting to see an improved performance largely driven by a stronger direct-to-consumer, while the wholesale streamlining will continue.”

He said he was “fairly confident” that the revenue consensus of 2 billion euros for the year “is achievable. For sure it’s challenging, given the global macroeconomic and geopolitical issues, but I am absolutely confident we are taking the right actions to deliver it.”

Mid-term guidance was also “unchanged and fully confirmed.”

“We are on track with the integration of Tom Ford and seeing the first positive signs from the brand’s fashion collection, available now for the past couple of months, and for Thom Browne we are focusing on retail and streamlining the number of wholesale accounts, also through the conversion into concessions, without exiting the department stores,” said the executive, underscoring that now for the Zegna brand retail accounts for 85 percent of total sales. “This allows consistent pricing, visuals and so on. And we are not seeing any resistance to prices.”

In 2023, the DTC channel recorded sales of 1.26 billion euros, up 37.8 percent compared with 918.2 million euros in 2022.

Wholesale revenues amounted to 634.7 million euros, up 11.3 percent year-over-year.

Sales in the Europe, Middle East and Africa region rose 26.6 percent to 658.7 million euros and revenues in North America soared 41.6 percent to 417.3 million euros. Sales in Latin America were up 25.6 percent to 37.5 million euros and revenues in the Asia-Pacific region climbed 22.2 percent to 788 million euros.

Speaking about the first months of 2024, Zegna said “China is not really slowing down, but is reacting more slowly to the change of the Zegna one brand identity, compared to the U.S. and the Middle East, where the reaction was much faster.”

That said, he clarified that the Chinese cluster is “responding well” to the offer and the events the company is staging in the country. “The aspirational customer is lacking, and is spending less, but we are positioned in the high-end range. It could be a longer journey compared to the U.S., because Z Zegna contributed to a big portion of our sales in China, but gradually Zegna will replace that.”

He admitted that the volatility in Asia, mainly in Greater China, is “higher than expected,” and mainly for Thom Browne, influenced by the challenging environment but also “by the need to reinforce the organization that was not at the level we wanted and needed to face an increasingly challenging market.”

During a conference call with analysts, Rodrigo Bazan, CEO of Thom Browne, said the brand is “very committed to China,” and that streamlining its wholesale distribution represents “short-term pain for long term gain.” Last year the brand generated revenues of 380.3 million euros, up 14.9 percent on 2022. Adjusted operating profit for the brand amounted to 59 million euros, up 22.7 percent on the year before.

The Zegna segment generated revenues of 1.32 billion euros, up 12.4 percent on 1.17 billion euros in 2022. Adjusted operating profit totaled 193.5 million euros, up 36.7 percent on 2022.

The Tom Ford Fashion segment, now designed by Peter Hawkings, generated revenues of 235.5 million euros and adjusted operating losses of 1.7 million euros, mainly attributable to the 15.6 million euro one-off charges related to the purchase price allocation.

During the call, Tom Ford Fashion CEO Lelio Gavazza, who joined the brand last September, said China was still “a small market and a great opportunity,” and that a store will open in Beijing at the end of June. “We are planning massive marketing activities to connect with the Chinese consumer, one of the most important with the American” one, he said.

The importance of structuring the company with a new management organization was made during the call and, on LinkedIn, Joyce Weng now appears as president of Tom Ford Fashion, Greater China, South East Asia and Oceania. Simon Kendall has been named president of Tom Ford Fashion, Americas.

Zegna underscored the importance of investing in the group’s supply chain and the latest addition is a state-of-the-art footwear and leather goods production facility in Parma, Italy, expected to be completed by the end of 2026, as reported. Designed by ACPV Architects Antonio Citterio Patricia Viel, it will employ 300 people, and primarily produce men’s shoes and leather goods. But Zegna pointed out that “it is very important and it is much more than a plant, it’s a project of design, branding, research and development and training center and will house the academy.”

Asked if he was eyeing further acquisitions, Zegna said “there is nothing on the horizon,” but that in any case he was “not looking at buying brands, and a supplier would be more interesting for us.”

He concluded saying that the group “is a guardian of brands, and while short-term results are important, our top priority must always be their overall trajectory. What we should do is well defined; there will be challenges, but we know how to tackle them and how important it is to plan for the long term.”

In 2023, capital expenditure rose to 77.9 million euros, compared with 73.3 million euros a year earlier, mainly related to the expansion of the DTC stores’ network for all brands and, in particular, for Zegna.

As of Dec. 31, net debt stood at 10.8 million euros compared to a cash surplus of 122.2 million euros at the end of 2022, reflecting the investments in subsidiaries and associates, mainly related to the Tom Ford acquisition and the dividend distribution, partially offset by a free cash-flow generation of 71.8 million euros.

Zegna Group Sales Rise in Q1, Boosted by the Americas, Direct-to-consumer Business
Thom Browne sales fell during the quarter, however, as the group trimmed the brand’s wholesale distribution.

By LUISA ZARGANI
APRIL 23, 2024, 10:45AM

MILAN — Gildo Zegna is taking “a long-term view facing the short-term challenges.”

Reporting growth in revenues at the Ermenegildo Zegna Group in the first quarter of the year, its chairman and chief executive officer said during a call with analysts on Tuesday that the performance in the period was “in line with what we anticipated” and confirmed the mid-term outlook of a more than 10 percent compound annual revenue growth.

In the first three months ended March 31, group sales rose 8.1 percent to 463.2 million euros, compared with 428.3 million euros in the same period of 2023. At constant currency sales rose 10.7 percent.

“Closing the first quarter of 2024 with double-digit revenue growth on a constant currency basis is reassuring given the challenges that the sector is facing,” the executive said. “Our growth in the Americas — also in double digits — and the ongoing successful delivery of our Zegna One Brand strategy give me additional assurance that we are moving in the right direction.”

He said he was confident in the Thom Browne brand, which is “opening a new important chapter,” and in Tom Ford Fashion, touting the decisions made to accelerate direct control of the businesses, reinforcing the management structure and talent organization, “knowing how critical our people are to delivering results. Finally, we are continuing our focus on clienteling and customer experience, both of which will further strengthen the long-term value of all our brands.”

As reported, Joyce Weng was named president of Tom Ford Fashion, Greater China, South East Asia and Oceania, and Simon Kendall was appointed president of Tom Ford Fashion, Americas.

Zegna admitted “a difficult decision” was made to reduce wholesale accounts for Thom Browne “to protect the exclusivity of the brand long-term and to support its direct-to-consumer development. The indicators are strong and our actions will make it even stronger.”

Impacted by the streamlining of its wholesale channel and a different timing in deliveries, Thom Browne reported a 29.6 percent decrease in sales, which amounted to 79.2 million euros. The brand showed strong results in Japan while the Europe, Middle East and Africa region and Greater China were particularly dented by the wholesale reduction.

In the first quarter, revenues for the Zegna brand, designed by Alessandro Sartori, amounted to 282.9 million euros, up 4 percent, driven by healthy growth in key categories and, in particular, footwear and leisurewear. “It’s the same as building a house, we have strong and unique foundations that can’t be replicated and now we are building the floors,” mused Zegna.

Organic growth was 6.8 percent. Several key regions — mainly the Europe, Middle East and Africa region, the Americas and Japan — saw solid double-digit growth.

The Greater China region recorded a single-digit decline in the quarter. “China is going through a normalization phase,” following the post-pandemic recovery, Zegna said, pointing out that China was the last country where the One Brand strategy was launched.

“We are still working on awareness and clienteling there,” he explained. In addition, the Chinese are buying more in Europe and Japan, he contended.

After staging the Oasi Zegna immersive exhibition at the group’s headquarters in Milan during Salone del Mobile earlier this month, which attracted more than 26,000 visitors, the experience will be brought to Shanghai in May (and an “important event in the same direction” will be held in New York in September, said Zegna).

Chief financial officer Gianluca Tagliabue remarked that no strategic changes will be implemented in China and, on the contrary, investments will continue to fuel the brand’s development in the country, although “cautiously to protect the bottom line.” Responding to an analyst, he said that Zegna in China was up midsingle digit in April and reported “a good increase in Continental Europe — double digit — and in Japan.”

He observed that the “aspirational customer in China is more cautious, while the uber-luxury is delivering above expectations. We are working on the top of the pyramid at Thom Browne and the results will be visible at the end of the year.”

He added that he expected the next quarter to show a double-digit decline at the brand.

Revenues for the Tom Ford Fashion business totaled 65 million euros, driven by a strong performance mainly in the U.S. No comparison was provided with last year, since the brand was consolidated at the end of April 2023. New store openings are expected in Rome and Beijing in the third quarter of the year.

“Looking at the rest of the year, we have a clear and defined path in front of us. I am confident that we are taking the right actions to make our brands even stronger and to deliver on our medium-term ambitions,” Zegna said.

In the quarter, textile revenues dipped 1.7 percent to 33.2 million euros, as a result of lower textile demand from the luxury goods sector.

Direct-to-consumer revenues amounted to 328 million euros, up 20.4 percent on the previous year. The integration of the Tom Ford Fashion business contributed 43.7 million euros in direct-to-consumer revenues for the quarter. The Tom Ford brand is designed by Peter Hawkings.

At the end of March, the group had 646 stores.

In the first quarter, wholesale revenues were down 11.5 percent to 99.1 million euros.

The group’s sales were lifted by strong growth in the Americas, where sales jumped 57.7 percent to 114.2 million euros, representing 25 percent of the total.

“We are focused on the high-end of the range, offering more service and personalization,” Zegna said of the success in that market, where the group has increased its concession agreements.

In the second half, Neiman Marcus will convert the Zegna account in Los Angeles to a concession, as will Harry Rosen in Canada, among others. He paid tribute to the local American team that has “played an incredible part in the acceleration of the customer-centric strategy.” The public listing in New York in December 2021 also contributed to the support, he added. More stores in the U.S. are in the pipeline, he revealed.

Americans also continue to shop in Europe, while the Chinese are “very present” in Japan, South East Asia, Hong Kong and less so in Macao, Zegna said.

Sales in EMEA rose 4.3 percent to 156.6 million euros, accounting for 34 percent of the total. Italy represented around 40 percent of EMEA. The Greater China region recorded revenues of 139.4 million euros, declining 15.3 percent and accounting for 30 percent of the total, with the Zegna brand outperforming the region’s average. Revenues in the rest of Asia Pacific rose by 28.7 percent to 52.4 million euros, mainly driven by strong performance in the Japanese market and the conversion of the Thom Browne and Zegna Korean monobrand stores from wholesale to retail.

The group is to distribute a dividend of around 30 milion euros.

Source: WWD

Summary:
The acquisition of the Tom Ford license put Zegna at a loss of €10m at the end of 2023, but they're still dedicated to growing the brand long-term alongside its "sisters". They have no previous numbers to use as comparison, but Gildo Zegna seems to be pleased with the reception towards Hawkings' debut collection.