Good afternoon, good morning, everyone. Thank you for joining the Hermenegildo Zenger Group First Quarter 2026 Revenue School. Please note that today's material and presentation are available under the zengergroup.com website. Before we begin, we need to point out that the team will make certain forward-looking statements during the call. The group actual results may be materially different from those expressed or implied by this forward-looking statement. Also, these statements are subject to a number of risks and uncertainties, including those described in our SEC filings. Please refer to the forward-looking statement's cautionary statement, included at page 2 of today's presentation. I'll now hand over to Paola Durante, Chief of External Relations and Sustainability.

Thank you. Thank you, Operator. And good morning, good afternoon, everyone. Welcome to our first quarter 2026 revenue call. Today, I'm joined by our Group CEO, Gianluca Tagliabue, who will lead our call shortly. I will begin with a brief comment on our Q1 revenues before handing the floor to Gianluca. Let's therefore move directly to page 7 of the presentation. As always, you know, I will comment on revenue, on organic revenue trend because, you know, they better reflect the underlying business dynamics, excluding foreign exchange impacts. So, in Q1 2026, the group reported 470 million in revenues, which is up 7%, marking a sequential acceleration compared to the previous quarter. The performance was boosted by the DTC channel, which was up 14% group level, with remarkable results across the three brands, all the three brands. Growth was positive in all regions, led by Americas, with a nice 17% growth, and a positive GCR, Great China Region, at plus 5%. So let's turn to page 8, where I will focus on the performance by brand. them zenia recorded in the quarter 310 million euro up 11 percent in sequential improvement compared to q4 last year and this improvement has been given by a solid dtc performance which was solid across all regions from brown 58 million euro revenues in q1 reported a three percent of decline which is a combination of a strong dtc performance which was up double digit which has been offsetted by the contraction in the wholesale channel come for fashion 68 million euro in revenue so plus five percent organic also in this case boosted by dtc very quick on the textile performance was plus three percent which reflect an ongoing soft demand in the sector. I will not focus on other revenues that are an increase in marginal business, so quarter-on-quarter percentage are not meaningful. Directly on page 9, I will look at the revenues by geographic area. EMEA first. EMEA in the quarter represented 33% of our group revenues, up 1% with DTC solidly up across all brands, and this strong DTC performance has been counterbalanced by the decline in wholesale. The Americas in the quarter represented 29% of group revenues and recorded, as I already mentioned, a 17% growth in acceleration, boosted by double-digit growth across all the three brands. Greater China region, 26% of group revenues in the quarter and reported a positive plus 5% increase with a positive contribution from DTC et al. brands. Finally, Restovapak, which for us is a smaller region, 12% of group revenues, has reported an 8% growth driven by particularly Korea and Japan. That has been solidly positive across all the three brands. so page 10 not much comments here just a couple of numbers if i may the first one is which i would like to underline the first one is the dtc channel performance in the first quarter plus 14 percent group level and the fact that dtc now accounts for 85 percent of our group branded revenue as you You know, branded revenues exclude the textile and other revenues, which are by nature B2B businesses. All sale performance continues to reflect the decision, our decision to improve the quality of the network and to protect our icons. So let's now move to Zenia brand, page 11. In the first quarter of 2026, Zinnia DTC revenues, which accounted for 88% of brand revenues, sequentially accelerated compared to the previous quarter and fostered 14% organic growth. This performance was led by continued strong double-digit growth in the Americas and in EMEA, EMEA in particular with strong contribution of both tourists and locals. Rest of APAC and Greater China Region improved sequentially with the Chinese cluster that has turned positive in the quarter. At the end of March, the brand reduced its network by three direct operating stores. Looking at all sales, the Zainia revenues were down 5%. The performance is a reflection of the decision to reduce the brand exposure to this channel to protect exclusivity and iconicity. Tom Brown, page 12. In the first quarter of this year, Tom Brown reported a 20% DTC growth in acceleration, also thanks to the successful launch in March of a limited edition of sneakers in collaboration with ASICS. This launch boosted revenues worldwide and drove both existing and new customers to the stores. It has been an important driver of the brand's Q1 performance, BTC performance, but not the only one. In terms of store network, in the quarter, Tom Brown opened two dots. On the wholesale, as you see, the wholesale channel reported a 59% decline, which is a reflection of the decision to tighten control over distribution and enhance the quality of the channel. This performance, though, has been also partially impacted by a different timing in deliveries, with some shifts from Q1 to Q2 2026 versus last year. The first quarter trend should not be taken as a proxy for full year. As already anticipated in our previous call, we expect that from Brownall's sale in 2026 will be down double digits but less than what we have seen in the first quarter this year. Tom Ford Fashion, let's move to page 13. Tom Ford Fashion recorded a plus 9% growth in DTC, which has been driven by a consistent growth, a consistent performance across all the regions, in particular in the Americas, that is the most important market for the brand, also benefiting from the success of the new spring collection. This good brand, very good brand momentum has also been further supported by the show in Paris that you remember was a successful show in March this year. During the quarter, Tom Ford Fashion opened two doors, direct operating stores. Wholesale declined 3%, And just a normal reflection of our decision to focus on the DTC channel. Page 14, you can see, you can find the summary of the group store network. So not much to add. But before leaving the floor to Gianluca, let me today take a moment to highlight our main 2025 sustainability achievements. Full details of that and on our sustainability report that you can find on our website. In 2025 we reached some important goals in sustainability. I'm not going to rank all, but let's say I would like to highlight four of them. The first one is that at the group level, 42% of top priority raw material has been sourced from traceable and lower impact sources. This is a very good result, I would say, and actually we aim in 2026 to reach, to grow further this percentage to 50%. We also reached last year the Gender Equality Certification for the Italian entities of Zegna Brand, and also we have been included in the A-list recognition in the CDP climate. Last but very important, let me mention also a project that goes beyond sustainability, but it does embrace our legacy and unique know-how. In 2025, our internal academy, we call it the Academia dei Maestri, trained more than 50 maestri, craft people with distinctive expertise, and we prepare them to pass their knowledge on to future generations. a very important project which is really part of our legacy and of our included in our values and with this i hand over to Gianluca for his final remarks thank you Paola before we move to the Q&A i would like to share a few final remarks let me begin with a brief update on the main

recent projects and events across our three brands. I would like to start today with Thumb Brown and comment on the recent Thumb Brown ASICS launch. As Paolo already mentioned, in early March the brand introduced a three-color limited edition sneaker, which resonated strongly among both existing and new clients. And this was a relevant contributor to the DTC growth in the quarter. This successful launch reflects not only a strong creative project, but also a solid go-to-market execution. Now, we aim to leverage this momentum and the launch as out recruiting new clients. Our goal is to make them, or at least a portion of them, some brown repeat clients. We see jersey and knitwear as the expected second purchase items in the journey to make them loyal customers of the brand. We will soon launch a high summer capsule with a focus on colorful knitwear, jersey, shirts, a project that will promote a retail-first and merchandising-driven approach to support Tom Brown DTC revenues. On the other hand, as Paula mentioned, while wholesale performance in Q1 is not indicative of the full-year trend, we continue to streamline this channel in order to improve its quality and further focus on Tom Brown DTC. Moving now to Zenia Brand, the brand vision is clearly defined and the team continues to double down on it with strong coherence. At the end of March, during Art Basel Hong Kong, a flagship event within Art Basel, of which Zegna is a global sponsor, the brand successfully hosted a founder suite in the city. Founders' suites are smaller-scale Zegna villas built on the same concept, intimate, by invitation-only spaces, where our most important guests, the friends of the brand, are immersed in the Zegna legacy through highly personalized experiences. This includes special collections that are exclusive to the event and not available in the regular stores. Guests learn about Xenia's legacy and history in a physical space when the brand international community naturally comes together. Building on this same philosophy of immersive and highly curated brand experiences, Xenia engagement journey will continue in the months ahead. In June, the brand will further scale this approach in the U.S., hosting Summer 27 Fashion Show in Los Angeles, alongside the Villa Zegna experience. The decision to locate the next fashion show and villa in Los Angeles reflects both the growing relevance of the U.S. market for Zegna brand and the city's role as a global center of cultural influence. Finally, on Tom Ford Fashion, we already commented during the last poll on the success of the most recent fashion show, which further confirmed Heider Ackerman's ability to interpret the Tom Ford codes for fashion and its DNA in a way that is at once unique, contemporary, and deeply personal. Under his creative direction, the brand has defined its path and articulated a clear bridge between its past and its future. We are now working to translate this momentum and brand energy into in-store revenue generation. The positive Q1 results in DTC confirm that we are moving in the right direction, but we are fully aware that there is still work to be done and that we have to work to further build on this progress. The brand has opened in Q1 two stores in Mexico entering a market we see as offering a strong potential. Early feedbacks have been encouraging from these stores. Before concluding, let me add some comments on the situation in the Middle East and on current trading. As you know, the group operates 16 DOS in the Middle East region, alongside a limited number of franchisees store. All our stores are open and operational, and our teams continue to work with dedication and a strong sense of engagement in an environment that is obviously complex. Over the past weeks, we have implemented immediate actions to contain inventory levels and adjust discretional costs. Thanks to our people's connection with clients and the strength of our brands, in particular Zegna brand, the revenue decline in the region, although down double digit, is more contained than the decrease in average most traffic. Considering Middle Eastern cluster, so the residents, overall which includes middle east clients spending locally and spending abroad since the beginning of the complete conflict the impact is even more limited being substantially flat to last year this demonstrates the relevance of the strategy we have implemented over the years in the region with investments that laid the foundation for this rally relative resilience while the current situation requires close monitoring our long-term conviction in the region remains unchanged middle east continues to be a key market for the luxury goods sector and the strategic area of focus for our group to which we remain committed on current trading first of all it is important to underline that we are only one month into q2 so any indication is by definition partial looking at DTC performance for Zenia brand we are seeing trends broadly in line with Q1 excluding the Middle East in the Middle East April continues to show a double digit negative trend but at a lower rate than what we hear from the market and the competition on Tom Brown we are very pleased that the ASIC's collaboration is now almost sold out across the regions as expected the revenue trend therefore will normalize in q2 by adjusting the asics effect while we continue to see positive signs we are also mindful that we need to further build and strengthen this momentum in the coming months also leverage on the new clients that the collaboration brought to the brand on tom for fashion i would say that spring summer collection has been well received, and April continues to confirm this good trend. These early months of the year reflect the outcome of a vision and a long-term strategy defined in the last years and executed with discipline. We are aware that important work lies ahead, and we remain fully engaged in delivering on our commitments, knowing that the overall content remains challenging with that we open to the Q&A session thank you Gianluca and the operator can you please open the Q&A we will now begin the question and answer session if you would like to ask a question please press start one on your telephone keypad to raise your hand to withdraw your question press start one again please stand by while we compile the Q&A roster.

Your first question comes from the line of Chris Huang with UBS. Your line is now open. Please go ahead.

Hi, thanks for taking my question. It's Chris from UBS. And first of all, congrats on the very strong results. I will stick to two questions. The first one, I just wanted to come back on the Chinese consumer comment you made on the Zinnia brand. And I think, Paula, you mentioned that it was back to positive territory in Q1, which was very impressive. So could you maybe kind of elaborate a little bit more on what you have been doing in the region? And, you know, following that positive start of the year in Q1, would you expect this positive momentum to continue throughout the rest of the year? So that's my first one. Secondly, can we just talk a little bit about Tom Brown? I think, obviously, Q1 was a very strong quarter boosted by the ASICS collaboration. Are you able to quantify how much incremental revenues that collaboration brought to the brand in Q1? And also, if you could very helpfully break down the like-for-like versus space component. I mean, if we look simply at the number of stores, probably like-for-like is in the range of low to mid-teens, if that's correct. And what does that mean for the H1 margins?

Thank you very much. thank you chris okay i'll i'll ask gianluca to to comment on the chinese market at anton brown so the hi chris so yeah you're right the talking about cluster cluster and market for its needs it's very similar knowing that most of the demand is local so chinese cluster for xenia yes did turn positive in the quarter. So we see this as a positive indication. When you look at the full year, we stay cautious because we see this not as a steady, every week, same performance. So we see some volatility in the result. So we cannot yet say we are entirely into stable growth momentum. That's why we reaffirmed that we are still looking in the planning, probably in a cautiously way, still looking at greater China more as a flat environment on a calm basis. we are seeing within china big momentum in hong kong and we will also take advantage of this momentum with an important opening along the year with arbor city in xenia less of a strong momentum in mainland china still we see the tier one cities holding much better than the second tier cities so this is an actual the environment of what we see in china of course i think that what has been said in the last sessions with me with gildo in several moment moments we have been executing in china on the same ground we were later i think finally we see some some some signs of traction yes ASICs you asked on ASICs ASICs is not the only driver of the plus 20 percent growth in DTC is an important contributor but definitely it's a big contributor also the rest so it's it's not that taking away ASICs we go to zero it's an important contributor but substantial growth comes from non-ASICs. In terms of space and comp, when you'd say low to mid, I think you are not making properly the right calculation. So in terms of comp, Zegna and Tom Ford are the bulk majority is comp. The bulk majority is comp.

On Tom Brown, there is probably an equivalent component of company space yeah thank you second your next question comes on the line of natasha bonnet with morgan stanley your line is now open please go ahead this is natasha bonnet from morgan stanley thank you for taking my questions paula and gen luca i have two just first of all can you remind us on the contribution from pricing this here. I believe it's mid-single digit. And then maybe if you could break down how volume and mix and pricing have trended in Q1. And then my second question on the Zegna brand specifically, what are you seeing in terms of new versus existing clients in Q1, especially in the U.S., and anything to call out in terms of performance by product categories? Thank you.

Thank you, Natasha. Sorry, the second question, just to clarify, okay, the contribution by category but the first part of the question on zenia was on new clients and yes new versus existing clients the new versus existing sorry i didn't get that okay um price price mix volume so by brand and then i will dig time on zenia um zenia the big driver is definitely a ur with a low-mid, as you said, price component.

So there is a bigger component on mix, big component on mix, whether it's elevated luxury leisure wear or the component of triple-stage no-book. But there is definitely a mix component that is elevating the AUR. on Tom Brown and Tom Ford the EUR is less of a topic it's also volume, the driver in terms of new existing we are seeing an increased number of new coming into the Zegna brand I think that all the I think the brand momentum whether it's one product or another the brand overarching momentum is attracting new clients to the brand across all regions here actually region so i think we are seeing more more new and and what we are working a lot is also um is also the retention of you for instance i make an example because we always think of new through the typical stitch it's not only that we launched in q1 the collection of fragrances that is also another entry door to the brand the memory which is of course is a brand that well resonate a product story that well resonate in the brand because it talks about the story of the brand so we are opening new doors to come into the brand and the memory that is the fragrance collection is a perfect example

And in terms of price mix, also Sumisura and all the personalized collections also through the Villa Zegna and the suite are also an important contributor.

Yeah. Sumisura is definitely growing a lot. we have always mentioned this so the zenia spaces whether are the suites which are temporary location that we do outside of the stores for a week where we present our unique collection whether it's a villa which is the pinnacle of that temporary location we present collections that are unique can be bought on ready to wear typically are bought on a make-to-measure basis but they carry an intrinsic higher price so that is a big driver and unique differentiating factors of the brand we are working to make the make to measure also a bigger component of business also on tom ford and tom brown of course starting from a lower base but for instance we we launched new collection of sumisura make to measure on tom ford in the recent months we opened to women tailoring we are we opened leather outerwear on sumisura on tom ford so that business of sumisura which intrinsically carries a new a new a higher a ur is definitely a driver going back to the last point, which is on new versus existing. I talked about Xenia. I think it's important also to remark on Tom Brown ASICs, which has been an important driver to engage with new customers or re-engage with customers that used to buy at Tom Brown. And this has been an important hook. So when we talk about Tom Brown in the first quarter, driven also by ASICS, the numbers, but definitely this is a legacy for the remaining quarter. We need to work as a team to make sure that the new clients, also prospects, because we basically sold out the product. so said there is someone that didn't find the product we can engage them bringing them back and use this as a as a as a driver as a as a as a way to bring them back into the tom brown brand thank you next question please your next question comes from the line of boomy can't about with jeffries your line is not open please go ahead can i confirm can i just confirm

that when you include the middle eastern cluster um it was flat versus last year but then when you're talking to locals double digit down um sorry it was difficult to hear the beginning of talking so can you repeat yes sorry so just a clarification for the first question can you just confirm what the Middle Eastern cluster did year on year when you're including tourists and locals the second one can you just talk about how much to Missouri now is as a sense of Zania branded sales versus as a sense of Tom Ford and Tom Brown sales and where you hope that will get

Bumi, unfortunately, it's very difficult to hear you, and I'm sorry, but...

Robert, if I rephrase, I think she was asking more clarity about the Middle Eastern cluster.

Yeah, the cluster on Middle East, the first one.

And then personalization in each brand, I think.

Luca is much better in understanding.

You asked about the incidence of personalization in the different brands. am i right uh yes yes okay good good okay middle east cluster on uh the clarification that we said we commend yeah we said that the middle east cluster so all the residents in middle east year to date starting no not not year today sorry from the date of the conflict have been flat Yeah, year-to-date is positive, clearly. Year-to-date is positive because January and February was very positive. So this is what we said before. And this implies basically that they have purchased less locally and they've purchased more abroad. And this abroad is partially going mostly to Europe. this is what we see on the Middle East residents personalization, we don't really provide details by brand but you know that we say that in terms of sumisura for Zenia brand is around 10% growing but around that level and this is the number that we can report and on the other two brands are is is minimal so far but as we said before we are working to increase the collection to increase the capacity of the network to sell so that is an untapped potential for the two brands great thank you very much thank you boomy sorry for not understanding immediately next one your The next question comes from the line of Chiara Battistini with JP Morgan.

Your line is now open. Please go ahead.

Thank you very much. Thank you for taking my questions. I have a couple, please. First one, on the performance in EMEA at group level, I was wondering, I know you mentioned wholesale drug and DTC performance, I was wondering if you could give us a bit better colour in terms of quantifying how much DTC was actually up in the quarter in EMEA and possibly what was the EMEA performance excluding the Middle East in Q1? That's the first question and second question and I know this is a current trading update but I was wondering on not even without a specific indication but really how should we be thinking about the operating leverage that I guess the ZENIA brand should be seeing tracking on the mid-teens growth in terms of how much margins we should be extrapolating, margin expansion we should be extrapolating versus the level of investment so any indication on how to think about margin progression in each one given the strong performance would be very helpful thank you very much in terms of your first question chiara what has been a mere performance excluding wholesale i would say there's been a

very solid double digit for all the three brands and in terms of middle east in the quarter a year to the Middle East is basically not much different.

Let's give you this so if you see that our overall group at 7.4 you exclude the Middle East from this year and next year it goes up slightly but not even one point.

On the operating leverage given Zegna performance I think the question was on Zegna for the rest of the year I leave to John-Luca?

I think that so far, let's not enter into revised outlooks. We confirm what we see out there in terms of consensus, which is floating between 185, 190 of a million euro for adjusted EBIT. Let's remember, that's the reason why we sat there uh saying that we have a a margin in percentage which is moving sideways to last year excluding the hit by sax because we have two factors we're investing heavily in it in one group in creating the backbone across the brands of same system same processes so this is a moment of investment for for the group and second we have currency headwind we have seen in q1 five points we don't expect five points for the year it will be somewhere close to two points so we have anyway headwinds on currency we don't want to push the price lever too much and therefore part of that will impact the bottom line and therefore that's that's the reason why we are cautious in saying that we will enjoy it too much of our operating leverage we we want to continue growing at our pace set in the ground for long term foundation and of course IT is one of those and not stretching too much the price lever it's another thing thank you that's great thank you thank you chiara next your next

question comes in the line of maria nata with bernstein your line is now open please go ahead hello and thank you for taking my questions i have three first at tom ford what is the split between women's wear and men's wear today and then on women's wear specifically i know that Haider Ackerman has been focused on ready-to-wear specifically in his first collection, but I was wondering if he's now working on that iconic leather goods sort of model the next bag that will be popular at Tom Ford. And then finally, it's a longer-term question, but today how confident are you in your 2027 guidance? Because consensus from what I see is below on both top line and bottom line, and what levers do you plan to achieve the results in your guidance? Thank you.

Thank you, Maria. So I'll leave to Gianluca on the split men's women, Tom Ford, the 70-30. So this is 70-30 men's women, but on the leather goods and our plan on Tom Ford fashion, I ask Gianluca to comment more.

It's part of the journey, as Maria said, we started already to wear and we are also going to reinforce the leather goods part. that i think we are definitely head on the leather wear rather than leather goods i think that we are seeing good momentum on leather where mostly men but also some some good results on the women's side definitely that is one of the driver of the growth another one is knitwear which is becoming more and more important for the brand of course then there are the iconic parts, which is the units, tuxedo, and so on and so forth. We recognize that we are still looking for iconic pieces on the women's bags. On shoes, we are seeing some good results. I think that we are still working hard on the bag. Definitely is one key work stream for the group in the months to come. And that is, if you look at from the other side, still an intact potential, we see the opportunity to find a good platform there and make an offer that is Tom Ford in the DNA. So that is what all the team from design to merchandising is working. When we feel we have all the stars aligned, then the amplification of the message and marketing will come. but i would say very important to the work that has been done on the brand uh overall this is really the starting point on ready to wear i think we are seeing that is the driver of the growth so far 2027 guidance how confident we are that we we we confirm that the targets that we have stated and we declared states are valid and we said on the lower part of the range. I remember we put a range of revenues and then we engineered it. So we're still comfortable on that lower part. Of course, why we said lower part? Because from when we set the guidance, which was one year ago, March of 25, the currencies have taken definitely a swing and therefore it would not be realistic it could pay more than the lower part of the guidance. But we are still focused on delivering on that lower part of the range. Of course, then we are still with a big question mark of what will be the outcome in the next months of Middle East. But we are still seeing that lower range as our goal for it.

Okay, next.

Your next question comes from the line of Chris Gau with CLSA. Your line is now open. Please go ahead.

Hi, thank you for taking my question. This is Chris Gau from CLSA. Right, so firstly, it's still about a follow-up about the current trading. So just want to be more precise. So how do we see the 2Q today trends compared with March exit rate? And This is the first thing, and also if you have more clarity on D2C and Xenia core brands, it could be highly appreciated. Also on the GP margin trends for the first half, so how should we think of this? Definitely, we believe you have strong support from your outstanding D2C sales growth, right? So while industry-wise, there are still headwinds from foreign exchange and input cost volatility from geopolitical tensions, So how should we think of, you know, the first half GP margin trends? I understand this was a revenue call, but just any, you know, preliminary color could be highly appreciated. And then my second question is about the new customer accretive contribution comment that management made just now. So we're very happy to see there are more new customers contributing to the growth. So I just want to confirm, one, if it is also the case among the Chinese cluster and also among these new client acquisitions, do you see these new clients are more from Xenia France, are more into the doers, or more are categorized as aspirational customers? So I just want to understand the profile of these newly acquired customers. Thank you very much.

Thank you, Chris. Chris, yes, you said three questions, I think there is a bit more than that, but let's start with the current trend and exit rate, a few comments in particular on the DTC and Zegna, and I asked Gianluca to provide some colors.

Hi, Chris. So, I'll give you some color on how we enter in Q2. So, on DTC, we finished Q1 with a plus 14. We said that excluding Middle East, of course, where the performance is negative compared to last year, DTC overall is trending in line with Q1. So we don't see major difference. The performance in Middle East is double-digit down, but substantially less than what we hear. It's the minus 50% that is out in the market in terms of traffic. So we are experiencing a double-digit decline, but much more muted than what we hear out there at a minus 50%. There will be a difference, as we said before, the decline of Tom Brown wholesale in Q1 is not to be replicated in Q2. We have said that will be the overall year, full year growth will be much less than that in the range of between 20 and 30. And DTC Tom Brown also. And DTC Tom Brown will be adjusted for the partial growth contribution coming from ASICS. What was the other? On margin, I think not today. We are not talking about first half or second half margin because today we want to focus on revenues. In terms of new customers and doers, we are seeing growth everywhere. we continue experiences of growth on friends and doers thanks to the personalization the elevation of the offer as i said before we are seeing more and more new clients coming in from the different doors that i mentioned before also in china before i didn't mention another entry door is also the 232 that is the new platform of shoes that we put on the side of the triple stage so we don't have one arrow only and we have multiple weapons to bring new clients into the brand and so i think we see a stable and healthy pattern of growth across the different clusters we are not banking only on new we are not banking only on xenia france maybe the only things that you already mentioned previously is the fact that in first half the impact from currency will be higher than in the second part so yeah we had five five points uh in the first quarter i think uh hopefully we will at this point we will the edwin will stabilize we expect on the full year probably close to two points on the year thank you thank you chris next your next

question comes from the line of adrian du zaga with goldman sachs your line is now open please go ahead thank you very much for taking my questions um i know you've commented on the consumer environment across regions but could you please provide a bit more color on the performance by cluster my second question would be um on the wholesale channel what are the trends that you're seeing so far uh in the first half of 26 how is the confidence across your partners and what are you seeing uh with the order books and then the last question is just a quick follow-up on your comments on margins so you've reiterated your guidance for margin to be sideways uh extrax

for the full year could you help us frame the phasing for investments uh between the first half and the second half please thank you very much thank you adrian so uh first on performance by cluster adrian so cluster um north americans continued very solid on a double digit basis so we keep on seeing good momentum and walking away from the cluster for a moment since we are talking there we are banking on this by keep on expanding the network there we are opening scottsdale and san diego with xenia and taking aside xenia for a moment we are investing all from tom ford it's balarbor it's san diego and it's costa mesa southern california so cluster for xenia good market important and we continue investing in that market as i said before the chinese cluster turned positive in the quarter in terms of european european are solid double down growth and double down growth double digit double digit double down double digit growth um european cluster and what we see again moving away from the cluster a moment something that probably is uh is positive for the brand in euro as a market not as a cluster we are seeing good growth of locals and also forums which probably i've seen some mixed reports elsewhere we are seeing also good momentum coming from foreigns in europe and as i said before the middle east cluster was positive double digit in q1 of course becoming flat from march beginning march onwards This is the answer on the cluster. On wholesale, I think it's a strategic self-inflicted limitations we are putting ourselves. We could definitely open the gate for more and more revenues. we are on wholesale we expect we expect still the business to go down as I said before Tom Brown will not be minus 58 will be half ways there what has been the performance of Zegna brand And then Tom Ford, it will still be Tom Ford, probably single digit negative in the year. And we expect Zainia to be around low double digit in the year for wholesale. It's not a question of order book. It's a question of strategic decision to contain the distribution on some products. we could easily open the gate to have more than the business we are doing on wholesale in terms of margin as i said it's sideways as as we stay there for the time being so we don't we don't provide more details than that today i'm as i said before i think that the consensus that is out there is realistic. Of course, with a big question mark about the volatility on Middle East, but I think that in the consensus it is baked somehow some disruption from Middle East.

Thank you. Thank you very much. Thank you so much. Okay, next.

Your next question comes from the line of Anthony Charchafi with BNP. Your line is now open. Please go ahead.

Good morning. Thank you for taking my question. It's from BNP. On China, the momentum is improving at Xenia. It's a market that is more skewed to tailoring, but also your shoe business is still and was still very resilient last year. Would you be able to share what category outperformed between tailoring, shoes and outerwear? and also by clientele it's also a market skew to top spender xenia friends did the growth with this top cluster improve and is catching up with the american and european xenia friends growth my second question is on the store closure in china for xenia given that you are planning to close 10 stores in 2026 i'm curious to know if the first closures are seeing positive effect in the remaining store nearby so basically a neutral impact on top line my third question would be on xenia dtc between a price mix and volume in the in the recent year the growth have been driven massively by price and mix with a rather subdued volume i'm just curious to know if you have a date in mind or a year in mind where you expect volume to kick in at some point and my last question is on xenia wholesale you decided last year to decrease the quantity of iconic product to your partners such as the conte the triple stitch and the uber luxury collection given that you guided the xenia wholesale down loadable digit is there any

shift to have in mind from wholesale to a retail store basically your retail performance being a bit boosted by a by a shift to your iconic product thank you hi anthony so let's start from china china is not definitely a skewed to tailoring market so it's not that we are banking on tailoring and it's not tailoring the driver i think that the category there that are driving the growth are luxury leisure all the different categories of luxury leisure shoes shoes is definitely both on the triple stitch on the 232 the personalization we have had a very good partially taken in q1 partially will be seen in q2 good campaign of make to measure so i think it's it's not tailoring the driver of the of the stabilization of or plus five actually of gcr it's a loss it's sold the rest uh so in terms of uh cluster i think they are the comment i made before about the balance draws across across cluster is the same for gcr we are seeing good momentum for new clients as i said before on the different entry door that are triple stitch 232 fragrances and we are seeing good results also on the loyal big spending clients so i think that what is true for the brand as a whole is also holding true for Xenia in China. In terms of price mix, of course, we said price, low, single digit. AUR, driven by mix, are drivers. On Xenia, probably also the number of tickets is up.

Yeah, absolutely.

Also, the number of tickets is up. Definitely in some areas with some softness in traffic, but to the execution and especially the conversion is driving a growth also in the number of tickets as it refers to zenia wholesale yes it's a decision to contain the the distribution of iconic items the ones that you mentioned of course we are taking advantage of some step back in also distribution in our doors whether it's existing doors or opening doors in us for instance some some new openings that we have as I mentioned before I mentioned before Scottsdale Scottsdale could be a door that is also taking advantage of some look drive some some business that today is not in our dtc network of course we all know that there are some clients especially in us that have been going through through difficulties and we pay the consequences last year on our credit definitely were very careful in feeding that business in a very solid way and therefore there is a very uh deliberate decision to uh to to focus and channel business that was in wholesale into our stores so in any single location whether it's costed whether it will be in florida next year whether it will be um san diego so there are definitely locations where we are opening and we don't have retail stores where we want to catalyze the business that today is held somewhere else yes there was a question on the positive impact from closures in china of course that is a definitely that is definitely our everyday goal for the store anytime and close the location to have a retention plan yes so i think that so far you cannot retain 100 of the business

because it would be illogical we have realistic goals of retention in any door we close and we are holding to that plan and some of the doors were maybe just a follow-up on the first one on the zenia friends or the clusters something we didn't mention is that zenia friends for zenia are growing double digit also this quarter so it's true that we have also new and clients but also our existing clients both tours and zenya friends are doing very well very very well next thank you thank you thank you anthony so your next question comes from the line of oliver

chen with td carwin your line is now open please go ahead hi paula and john luca uh the zenya brand has been impressive. Which regions or geographies drove outperformance just at the core Zinnia brand? And then as we think about China, China tourism overall, how has China tourism been relative to your expectations? And third question, on the Middle East, you've done better than peers based on strategies you've undertaken. What have those strategies been in terms of lesser, you know, traffic issues relative to competition. Thank you.

Thank you, Oliver. Okay, on the Zegna brand, what regions has drove the sequential acceleration, the performance?

Hi, Oliver. We never talked about, I was there last week, so Latin America, Mexico is booming. Brazil is booming percentage terms so we it's definitely not the biggest market but we always talk about america and we need to also point out of course us but also america and latin america are doing extremely well as i said before europe continental europe it's doing particularly well for us both locals and foreigners until end of february middle east was booming um so i think and japan and korea which we always mentioned it's not it's not our forte per se but we are seeing good traction on uh on japan and korea across the three brands uh therefore also driven by chinese uh tourists we are not seeing a lot of chinese back on the west side in europe so the driver of success in europe for on locals is uh is middle eastern south americans is north americans in the in the in milan in london in paris in madrid madrid is becoming a very important city for us we are opening a new flagship in madrid in the second half of the year which is becoming a very important destination for south america which is a very fertile ground for the brand so um i think this uh answers to your first question the third i forgot the middle east of what has drove our better um performance versus competition what we have done what of course is is a successor that has started years ago the relations that we have with our customers i think it's about resilience of the relay i think that our brand we always said we are marathon runners we are not sprinters we might not grow so fast but we we run steadily i think that our intimacy the the relationship that our teams have with the customers the fact that they know their lifestyle the fact we are not transactional and therefore i think that this keeps the business more resilient and steady in the good and bad days i think we are reaping the effects of very long-term relationship with clients the strategy that we have built so i think this is the reaction of having also in difficult times a good resilience and the fact that probably being a client a brand of destination these

clients also visit us elsewhere so maybe they don't visit us in in middle east they visit us elsewhere thank you um are there no questions there are no further questions at this time okay hello everyone alicia speaking thank you for attending today's call i would like to remind you that our next release and conference call will take place on July 23rd for each one preliminary revenues. The silent period will begin on July 1st, but if you need any other further clarification, please do not hesitate to contact us. Have a nice rest of the day.

And a nice, hopefully, long weekend. I don't know who will have a weekend tomorrow. Thank you also from myself.

And myself. Ciao.

This concludes today's call. Thank you for attending. You may now disconnect.