The Sino Russian market is dragging down Zegna's annual profit plunging by 39%. While continuing to adjust the layout of the network, the group plans to open new stores in cities such as New York, Miami, Tokyo and Osaka this year.

In 2014, Ermenegildo Zegna Holditalia SpA Zegna's performance fell sharply. The contraction of the main emerging markets, China and Russia, the strong euro in the first half of the year, extra tax expenditure and the restart of the group's Agnona brand investment had a great impact on the Italy men's wear luxury group.

　　 Ermenegildo Zegna Holditalia SpA Zegna's year-on-year net profit plunged 39%, down from 116 million 300 thousand euros in 2013 to 71 million euros, and EBITDA's profit before depreciation and amortization was 185 million euros, a 28% decrease compared with the previous year. The total income was 1 billion 210 million euros, the previous year was 1 billion 270 million euros, an annual decline of 4.7%, while the previous year saw a slight increase of 0.7%.

Ermenegildo Zegna Holditalia SpA chief executive officer of Zegna Gildo Zegna In the earnings report, the biggest market for Chinese and Russian men's consumption is slowing down. Export business The group, which accounts for more than 90%, has great influence. The group is trying to offset the contraction of the Sino Russian market by strengthening investment in the second major markets, the US retail network and the wholesale cooperation with the large chain department stores.

By the end of 2014, the total number of stores in the group was 525, a net decrease of 21 over the same period of the previous year, and the number of direct outlets decreased to 312 from 312 in the previous year. At the beginning of this year, Ermenegildo Zegna, the same name successor of Ermenegildo Zegna family brand, said that the scale of the direct retail network was too large and the layout was not proper.

Ermenegildo Zegna Holditalia SpA Zegna invested 20 million euros in Italy last year to strengthen supply chain control, and built three new production bases for garment factories, leather goods, jackets and shoe factories and knitting workshops. It also participated in raw material production for the first time through the acquisition of 60% stake in Archill wool ranch in New South Wales, Australia, and expanded the vertical supply chain of the group.

In addition, Switzerland is the origin of most Ermenegildo Zegna Holditalia SpA Zegna group's tailored suits, and the sharp appreciation of the Swiss Franc at the beginning of the year forced the group to re-examine the 2015 budget plan. At that time, Ermenegildo Zegna pointed out that in order to restore the growth of the group in 2015, the group will reconsider the salary level of the Italy workers who work in Switzerland, and will also assess the global distribution and personnel size, and not exclude the transfer of part of the increased cost to consumers.