Italian luxury group Ermenegildo Zegna said on Thursday its adjusted operating profit slid 16.4% to 184 million euros($198 million) last year, as the group pushed forward with investments despite a “challenging environment”.
Adjusted earnings before interest and tax (EBIT) was, however, above analysts’ consensus, as the group earlier this year said it expected it to be around 175 million euros.
The group, whose sales fell 1.9% last year to 1.95 billion euros in part because of weakness in China, said it now expects revenues in the range of 2.2 billion to 2.4 billion euros in 2027. Adjusted EBIT is expected to reach 250-300 million euros the same year.
“As we look further into 2025, we recognize the importance of maintaining a cautious approach while also remaining committed to delivering on our projects,” said Chairman and CEO Gildo Zegna in a statement.
“Especially in today’s environment, protecting our brands’ identity remains our first priority,” he added. Besides Zegna, the group also includes the Thom Browne and Tom Ford Fashion brands.
PayPal shares fell 4% on Friday after comments from a European Union lawmaker raised concerns that payments firms could get swept up in escalating U.S.-Europe trade tensions and potential tariffs. Uncertainty over tariffs and mounting trade actions have unsettled global markets, causing volatility, straining supply chains and shifting investor sentiment across industries.
Reuters
Earlier this week, U.S. President Donald Trump said larger tariffs could be placed on the European Union and Canada if they both work together “to do economic harm to the USA”.
“In the case of digital service providers, there is also a huge economic interest on the part of U.S. companies,” said Bernd Lange, the head of the European Parliament’s international trade committee. “In this respect, you can also look at charging fees on PayPal or Google.”
If imposed, the measures would pose a new challenge for the payments sector, which is typically shielded from tariffs as it does not depend on trade of physical goods.
Separately on Friday, a German government spokesperson also said “nothing is off the table” with regards to punitive measures in response to the threat of U.S. tariffs.
Dolce Gabbana Srl, LVMH’s Louis Vuitton and Kering SA’s Gucci are set to anchor a new luxury retail development in South Africa’s VA Waterfront, according to the head of one of the continent’s most visited shopping and tourism destinations.
Cape Town’s VA is tripling the size of space available for rent to luxury retailers to almost 4,000 square meters (43,056 square feet) in a dedicated new wing, David Green, its chief executive officer, said in an interview. That comes amid growing demand for high-end goods in South Africa’s second-biggest city.
Representatives for Dolce Gabbana and Louis Vuitton didn’t respond to request for comment, and a spokesperson for Gucci declined to comment.
While the firms already have stores at the VA, these are dispersed among its other retail outlets. The new development will bring the mall’s luxury retailers under one roof, with store space for the three brands set to double, Green said.
In all, the new 207 million rand ($11.4 million) development expects to add as many as six new brands, including Capri Holdings Ltd.’s Versace, to existing offerings like Burberry Group Plc and MaXhosa Africa.
Africa is emerging as a burgeoning market for luxury goods driven by strong economic growth, an expanding middle class, increasing consumer spending power and a rising millionaire population. Output in the sub-Saharan region will probably expand 4.2% this year, making it the third-fastest growing emerging- and developing-market behind India and China, according International Monetary Fund estimates.
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South Africa, the continent’s richest nation, is the most established regional market for designer goods. Trading density for luxury brands in malls increased 171% in the five years through June 2024, according to Clur’s Shopping Centre Index, which tracks 4.1 million square meters of prime retail space in the country and neighboring Namibia.
The VA’s new development will see it “narrow the gap” with the Johannesburg-based luxury arcade known as The Diamond Walk in Sandton City, Green said. The surrounding precinct in South Africa’s economic hub is referred to as Africa’s richest square mile given its concentration of top businesses, high-net worth individuals and opulent homes.
Still, South Africa has among the world’s highest unemployment and inequality rates and is only just recovering from decades of moribund growth.
Demand for designer goods in Cape Town is partly driven by international tourists, including affluent shoppers from the rest of the continent, and the migration of wealthy families from other parts of the country, he said. The metro will overtake Johannesburg to become Africa’s richest city by 2030, according to Henley Partners.
Construction on the VA’s luxury development, located in South Africa’s oldest working harbor and set against the backdrop of Table Mountain, has already started. It will open for business in phases from November through next Easter.
The VA registered record retail sales of 1.4 billion rand in December, its peak period, Green said — up nearly 17% from a year earlier. Stores sold more than 10 billion rand in goods in 2024, about 7% of which were luxury items, he said.
The company is jointly owned by government-worker pension fund manager Public Investment Corp. and Growthpoint Properties Ltd., South Africa’s biggest listed real estate firm. It’s also planning a 20 billion rand expansion of the adjacent Granger Bay precinct, and expects to receive permission for the development, which involves reclaiming land from the sea, from City of Cape Town authorities in the first half of 2025.
TikTok Shop is keen to challenge e-commerce platforms like Amazon and eBay, and will officially launch in Italy, France and Germany on March 31, featuring short videos, customised digital shopfronts, and live-streaming sessions in which questions by potential customers can be answered in real time.
TikTok
Users will be able to purchase the products that appear in their ‘for you’ video feeds, or directly from the social commerce platform during live-streamed sessions. While vendors, from major brands to local SMEs and creators, will promote their products via interactive videos and live shopping sessions. The latter in particular are a faster, more interactive way of connecting with customers, something of a 5.0 version of TV shopping channels.
In Italy, 22.8 million TikTok users will be able to purchase items showcased by creators in real time or via recorded content.
“The experience is similar to buying in a physical store: vendors can answer live questions from users, show their products from different angles, and provide highly personalised advice,” said Jan Wilk, head of operations at TikTok Shop UK.
TikTok’s algorithm, as it does for non-sponsored videos, will display to users the content and hence products that best fit with their preferences. TikTok Shop said there will be “strict checks on products and vendors,” in line with the platform’s rules, but consumer associations are perplexed. In Italy, Codacons said that “the very essence of TikTok, which can generate forms of compulsive shopping” is one of the service’s “critical issues.”
TikTok Shop is a member of Netcomm, the association of digital commerce operators in Italy.
Featuring on TikTok Shop “will boost Goovi’s digital presence, amplify engagement with our community, and enable us to reach new audiences with a strong inclination for social commerce,” said Giorgia Lixi, digital and e-commerce manager for natural cosmetics and supplements brand Goovi, talking to the ANSA agency. “We believe TikTok Shop can contribute significantly to the growth of our online sales segment,” she added.
“We’re expecting a positive impact, both among my existing followers and those who will discover my brand and products for the first time,” said fashion and lifestyle TikToker New Martina, who underlined that “my live sessions clock up on average 100,000 views, leading to increased site traffic and more orders.”
Entertainment8 years ago