Ermenegildo Zegna expects slow growth in 2014
Gildo Zegna, CEO of Ermenegildo Zegna said in a recent interview that he expects revenue growth at the namesake luxury goods maker will remain under pressure for at least another six months as demand moderates in China and the yen’s weakness persists. “October and November were not good months overall,” the chief executive officer of the Italian company said yesterday in an interview in Milan. “The first half of 2014 will still see this lower pace, which I hope will come back in the second half,” he said, forecasting growth of less than 10 percent for the full year.
Currency fluctuations wiped 3 percent off Zegna’s sales last year, meaning revenue was “flattish” on a reported basis, the CEO said. Revenue rose at a “single-digit” pace in China, slowing from 2012, while European sales would have declined had it not been for spending by travelers to the region, Zegna said. “The only real positive” is the U.S., the executive said. “We have seen a positive trend that started in the course of last year, which we believe will continue.”