Pal Zileri sees growth in knitwear, plans two store openings by summer

Pal Zileri is expanding in its knitwear segment and is preparing to open two new mono-brand stores by next summer. This was revealed by the CEO of the menswear label, Leo Scordo, who spoke to FashionNetwork.com during Milan Fashion Week.

The brand, owned by the Mayhoola fund, which does not disclose revenue figures separately, closed the 2025 financial year broadly in line with the previous year thanks to an increasingly customer-focused strategy.

“The retail and wholesale channels are holding steady,” Scordo notes. “Despite an overall drop in footfall at luxury stores, the conversion rate has held up. In the end, our stores performed well. Wholesale has also performed well, thanks to Italy, Europe, the Benelux region, the UK, and the Middle East,” Scordo explains.

Pal Zileri has launched a ‘clienteling’ initiative aimed at gathering insights into customers’ lifestyles. “In any conversation, the sale is the last consideration. It is more important to understand expectations and feedback to build a lasting relationship. With technology today, we often experience semi-automated interactions. Instead, we need to earn our customers’ respect,” the CEO continues.

Two new franchised mono-brand stores will open by next summer. “We will open in Baku (Azerbaijan) and Sydney (Australia). But we are always looking for new locations,” Scordo reveals.

Pal Zileri operates around 20 company-owned stores worldwide and is present in 300 points of sale. The expansion strategy in the US continues. “We have taken part in a couple of trade fairs. We are placing significant emphasis on the United States, despite the current challenges in the US market. We are targeting independent retailers who know the brand and have shown strong growth. These are often family-run businesses whose business culture is rooted in customer relationships,” Scordo points out.

There is also a new pricing strategy. “The principles by which we set a product’s price in Italy must be applied worldwide. The price should not depend on exchange rates or duties. We have sacrificed some margin to benefit the end customer,” the CEO explains.

Knitwear now plays a bigger role in the collection. “After suits, knitwear is the fastest-growing category. It is now very important for revenue. Suits have a higher average price, but in volume terms knitwear sells more pieces,” Scordo notes.

In Milan, the brand presented its latest FW26 collection. “We have developed a proposition that dresses the customer for a typical day: from breakfast, to a Zoom call, to a product meeting, to a business lunch, to an afternoon aperitivo and dinner. There is no need to get changed. Everyone should feel comfortable in themselves and be represented by what they wear,” Scordo concludes.