Zegna Sales Will Decline Or New Brand Strategy Will Be Launched.

According to the world clothing shoes and hats net, Italy

Group Ermenegildo Zegna (

The core financial data for the 2016 fiscal year have been released recently. Ermenegildo Zegna data is not satisfactory due to excessive cost and bad debt handling and weak sales performance in major markets.

The group plans to launch new projects in 2017.

Strategy, restructured company structure to promote the rebound in China and Europe.

The core financial data for Zegna 2016 fiscal year are as follows:

Net profit fell from 55 million euros to 20 million euros, down 55.5% from the same period last year.

EBITDA (profit before depreciation and amortization) decreased from 146 million euros to 125 million euros, down 14.3% from the same period last year.

Sales fell from 1 billion 260 million euros to 1 billion 150 million euros, down 7% from the same period last year.

Net cash balance grew 42% to 233 million euros

Export sales account for more than 90% of the group's total sales.

From the regional perspective, Canada, Mexico, Dubai and Japan are stable. China is still the largest market for Zegna, accounting for 1/3 of total sales, while the United States is the second place, and sales in Russia have increased.

Chief executive Gildo Zegna said: "the rebound in China and Europe is better than expected, but the United States has not achieved our expectations.

In the past two quarters, retail sales and wholesale sales have been struggling in the US because of the poor performance of the US dollar due to the strong US dollar. "

When asked why China failed to develop rapidly, Gildo Zegna believes that Chinese people are spending too little locally and that they have adjusted China's preferential policies to meet the needs of local consumers, and the performance of the Chinese market has improved in the last quarter of 2016.

The group is working hard to implement the new strategy. Its biggest bright spot is the return of creative director Alessandro Sartori and the establishment of some new posts.

Alessandro Sartori joined the Zegna as early as 1989, and then took charge of the design work for eight years.

CEO evaluated the designer so well: "Sartori is the designer who can best represent Zegna.

The group's newly established posts include first brand managers, digital and marketing executives, full channel managers and retail experience leaders.

In order to enhance the strength of manufacturing, Zegna has acquired Bonotto controlling stake in Italy's high-end fabric manufacturer.

Bonotto SpA, originally founded in 1912 by Luigi Bonotto, is now managed by the descendants of the founders, the fourth generation members of the Bonotto family, Lorenzo Bonotto and Giovanni Bonotto, and has successfully achieved global growth.

Zegna completed its industrial restructuring in 2015 and increased investment in the supply chain.

In order to strengthen the clothing department, the most advanced production center has been set up in San Pietro Mosezzo near Novara.

Prior to that, the group specialized in the production of casual wear, coats, leather clothing and accessories in three production centers of Parma. Besides, there is also a production base for knitting products specializing in the production of Verrone products in Verrone near Biella.

Zegna continued to expand its retail network in 2016.

After opening in Macao, Dubai and London, there are now 513 stores, 287 of which are direct stores.

About 1/5 of the remaining 226 stores are tourist retail outlets.

Zegna's tourism retail business is developing well, and it is expected to achieve two digit growth in 2017.

In 2017, the group will continue to invest in public welfare, including the benefit of local communities, scientific research, environmental protection, and conservation and development of Zegna Oasi Nature Reserve Park.

The group will continue to offer the Ermenegildo Zegna Founder scholarship amounting to 1 million euros, giving Italy talented university graduates the opportunity to undertake higher education or important research projects abroad, requiring them to return to Italy after completing their studies.

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