Ermenegildo Zegna CEO Expects Tough Year for Luxury Fashion

Picture source: Reuters

Ermenegildo Zegna, the chief executive of the eponymous Italian men’s fashion line, said in an interview that he expects the luxury sector to face slow a year, but expressed optimism about his company’s prospects in China.

“For 2017, there will be low growth at best,” Mr. Zegna told Handelsblatt, but said his fashion line, which generated €1.3 billion in revenue last year, is positioned to do better than most.

Ermenegildo Zegna has been restructured to “react quickly to changes in the market,” Mr. Zegna said. The chief executive pointed to developments in China, one of the world’s largest luxury fashion markets, as a good omen for the future.

Our orders in China have risen again,” Mr. Zegna said. But the competition in the luxury sector is tougher than in the past, he added.

The challenge this year will be taking market share from our competitors,” Mr. Zegna said.

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