The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The Italian luxury group returned to profitability in the first half of 2021, after the pandemic sent sales plunging and pushed it into the red.
It reported a €31 million ($36 million) profit for the six months ending June 30, compared with a €86.7 million loss during the same period last year. Sales were up 50 percent year-on-year, at €603.3 million.
The company said it had seen “solid growth” in the third quarter, adding its performance at the end of September was close to pre-pandemic levels.
The family-owned menswear group, which owns Thom Browne in addition to its flagship Zegna brand, has plans to go public later this year by merging with a New York-listed special purpose acquisition company (SPAC), giving the firm an anticipated enterprise value of $3.2 billion.
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Why Ermenegildo Zegna Is Going Public
The Italian menswear brand is raising $880 million by merging with a New York-listed SPAC. The funds will give the luxury firm greater financial firepower to help it bounce back from a bruising pandemic year and fend off competitors.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.
Any fashion company that is contemplating going public needs to have not only the product and brand fundamentals right but also a business strategy that can easily be understood by the markets, writes Imran Amed.
Consumer spending increased just 0.8 percent last month as the labour market cools.