Zegna to Open New Shoe and Leather Goods Factory in Italy

FILE PHOTO: A man walks by an Ermenegildo Zegna store, in Rome, Italy, December 20, 2021. REUTERS/Yara Nardi/File Photo
FILE PHOTO: A man walks by an Ermenegildo Zegna store, in Rome, Italy, December 20, 2021. REUTERS/Yara Nardi/File Photo
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Zegna to Open New Shoe and Leather Goods Factory in Italy

FILE PHOTO: A man walks by an Ermenegildo Zegna store, in Rome, Italy, December 20, 2021. REUTERS/Yara Nardi/File Photo
FILE PHOTO: A man walks by an Ermenegildo Zegna store, in Rome, Italy, December 20, 2021. REUTERS/Yara Nardi/File Photo

Italian fashion group Ermenegildo Zegna said on Thursday it would open a new luxury footwear and leather goods factory in northern Italy to meet the growing needs of its brands.
The 12,500 sq m facility will be located near Parma and is expected to be completed by December 2026. It should employ more than 300 people once at full capacity in 2027, the company said.
The move by the Zegna group, based in the northern Italian region of Piedmont but listed in New York, aims to promote Italian craftsmanship at a time when the luxury industry is short of artisans.
"The center will be more than just a production facility. It will play an important role as a training ground for a new generation of artisans, ensuring the ongoing viability of these important skills and working to preserve the uniqueness of 'Made in Italy'", Reuters quoted chairman and chief executive Gildo Zegna as saying.
The Italian group owns the Zegna and Thom Browne brands and operates Tom Ford Fashion through a long-term licence agreement with the Estée Lauder Companies.



Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)

Birkin-bag maker Hermes reported a 13% rise in second-quarter sales on Thursday, demonstrating the continued appetite from wealthy shoppers for its luxury handbags, even as less affluent consumers pull back.

Sales at the French luxury group grew to 3.7 billion euros ($4.02 billion), a 13% organic sales rise that strips out currency fluctuations. The figure was in line with analyst expectations, according to a Visible Alpha consensus.

Operating profit for the first half was 3.1 billion euros, compared to a forecast from consensus provider Visible Alpha for 3.2 billion.

One of the most steady performers in the luxury goods sector -- even as economic conditions worsen -- the French group's results stand out after a string of disappointing earnings updates from peers which have raised investor concern about uncertain prospects for the sector in the coming months.

Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity, and CEO Axel Dumas told reporters the company had seen "no big interruption in trends".

However, he said Hermes was seeing slightly less traffic with aspirational clients, which was impacting higher volume products like fashion accessories.