© Reuters. Plywood covers the windows of an Ermenegildo Zegna store in Chicago, Illinois, U.S. October 13, 2020. REUTERS/Moe Zoyari/File Photo
MILAN (Reuters) – Ermenegildo Zegna aims to grow its sales on average by more than 10% annually over the medium term, with profit rising twice as fast, after it bought U.S. brand Tom Ford (NYSE:) earlier this year, the Italian fashion group said on Tuesday.
The family-owned group, which debuted on Wall Street in late 2021, targets a growth of around 20% in adjusted operating profit in the next few years, it said presenting its strategy to investors.
It also expects to generate a strong cash flow surplus.
Zegna listed in New York by merging with a special purpose acquisition company backed by Italian private equity firm Investindustrial.
Zegna, based in the northwestern Italian region of Piedmont and famous for its tailored suits, took control of Tom Ford Fashion operations as part of the brand’s acquisition by Estée Lauder in early 2023.