Zegna'S Net Profit Plunged Last Year With A High Potential Market.

By the end of 2015, Ermenegildo Zegna group ran 523 boutiques, 307 of which were direct stores.

Affected by weak performance in Greater China, restructuring of its manufacturing business, and expansion of market business with strong growth potential, Italy Garment Group Ermenegildo Zegna slumped 36.6% in 2015, and profits before tax depreciation and amortization fell 21%.

For the 12 months ended December 31st, the group

From 71 million euros in 2014 to 45 million euros, profits before tax depreciation and amortization fell 21% to 146 million euros, while 185 million euros were recorded in 2014.

Total revenue rose 4% to 1 billion 260 million euros, and 1 billion 210 million euros in 2014.

In 2016, the group planned to open new stores in Berlin, Istanbul, Tehran and Macao.

In addition, Ermenegildo Zegna will refurbish existing stores, such as stores in Bond Street, London.

The group will launch a full channel project, starting in Europe and the United States, and then in Asia, aimed at enabling consumers to enjoy better results.

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Group chief executive officer Gildo Zegna revealed that the narrowing of group profits was partly due to investment in industrial restructuring, such as the expansion of the market with high potential, such as the United Arab Emirates of Japan and Arabia, the prudent choice of currency hedging and the weakening of the market with high profit margins (such as greater China).

However, the Group believes that geopolitics and the geopolitics that have to be faced must be considered.

The performance of 2015 has been satisfactory.

The group began optimizing its retail network last year.

First, the group set up a joint venture with Al Tayer group, based in Dubai, to expand its influence in the Middle East.

According to the agreement, Al Tayer group's former partner, UAE Trading, took over the business.

UAE Trading is the main operator of Ermenegildo Zegna in the United Arab Emirates' domestic brand boutiques and other sales outlets in Arabia.

Last year, the group completed its industrial restructuring project and stepped up its investment in its supply chain control.

Ermenegildo Zegna set up the most advanced manufacturing center for its clothing department in San petero, near the area of Nova.

In addition, the group also has three production centers for casual wear, coats and leather garments and accessories in Parma, Italy, while the center for knitted apparel is established in Veron, near Italy.

Chief executive Gildo Zegna believes that the restructuring of manufacturing business will enable the group to better face the global market challenges of instability and lack of reference standards.

According to the results of the financial report, the group's custom department recorded double-digit growth, mainly due to the strong growth of advanced services and unique textiles, as well as MTM leisure luxury customized services.

In addition, wholesale business has also been improved.

MTM formerly known as "Made to Measure" customized services, is an exclusive service, mainly dedicated to the pursuit of detail and high quality.