What to Watch: The Zegna Group’s Development of Tom Ford’s Fashion Business

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The Ermenegildo Zegna Group continues to evolve and in 2023 it will begin to be responsible for all of Tom Ford’s fashion business. Zegna’s 20-year Tom Ford licensing agreement with Lauder allows for an automatic renewal for an additional 10 years.

on the New York Stock Exchange in December 2021. That same year, it joined forces with Prada to buy a majority stake in cashmere firm Filati Biagioli Modesto SpA.

Acquiring Tom Ford’s fashion operations is expected to create synergies for Zegna, which also owned a 15 percent stake in the company, and will allow it to strengthen its womenswear segment. Gildo Zegna is expected to create an appropriate structure to fuel the brand’s development. Upon revealing the deal, Zegna described Tom Ford as one of the most “iconic and distinctive ultra-luxury brands in the world” and said this next step perfectly aligns with his strategy. “We have been partners and shareholders of the Tom Ford fashion business since its inception and I have worked with Tom for many years and consider him an esteemed friend,” the executive added.

That said, questions about the future of the Tom Ford brand without its founder are swirling. Under the agreement with Estée Lauder, Ford, the founder and CEO of his namesake brand, will continue to serve as its creative visionary after closing and through the end of calendar 2023. Domenico De Sole, chairman of Tom Ford International, will stay on as a consultant through that period, too.

In the three months ended Sept. 30, the Zegna group reported unaudited revenues of 357 million euros, up 27.5 percent year-over-year. Sales in the first nine months of 2022 reached 1.09 billion euros, up 22.9 percent compared with the same period in 2021.

 

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