Luxury Briefing: Why Zegna is outperforming Moncler in luxury’s uneven recovery

Moncler Group revenue increased 5% at constant exchange rates in the second quarter. But revenue at its core Moncler brand rose just 3%, below analysts’ expectations. Sales fell 8% in Europe, the Middle East and Africa, compared to growth of 12% in Asia and 4% in the Americas.

“The quarter has been good — not great, but good,” Luciano Santel, Moncler Group’s chief corporate and supply officer, said during the company’s earnings call. “April and May were both very good months. June [was] softer, much softer, due to an evident and clear decline in traffic in all the different regions.”

Europe was affected by lower spending from Chinese, Korean and American tourists, as well as weaker demand from local consumers. Some of that spending appears to have moved back to shoppers’ home markets, helping Moncler’s performance in Asia and the U.S.

“Moncler continues to be a compelling brand,” Luca Solca, senior luxury goods analyst at Bernstein, said in a note following the results. But he added that the company is “not immune to the value-for-money backlash” affecting soft luxury brands.

Moncler is also trying to reduce its reliance on winter outerwear. This year, it launched “Have a Puffy Summer,” its first fully integrated spring-summer campaign across product, stores, e-commerce, wholesale, CRM and marketing. “This spring-summer campaign meant way more than just a seasonal effort for us,” said Gino Fisanotti, Moncler’s chief brand officer. “This represents the kickoff of a long-term commitment that we have as a brand.”

The spring-summer collection performed well, including in June. But customers increasingly waited to buy fall-winter products until they were ready to wear them. “The very good performance of the spring-summer collection in June was not enough to offset the decline in the fall-winter collection,” Santel said.

Solca said this “buy-now, wear-now” behavior could make Moncler more seasonal, despite its progress in summer categories. He expects “Moncler’s seasonal lull to dominate near-term trading,” with similar tourism pressures likely to continue into the third quarter.

Zegna, meanwhile, reported 11% organic growth in the second quarter, four percentage points ahead of consensus expectations. Revenue at the Zegna brand increased 16.5%, while Tom Ford Fashion grew 7.1% and Thom Browne rose 2.7%. Group retail sales increased 17.3%, while wholesale declined 9.5% as Zegna continued to reduce its exposure to the channel. DTC, which now accounts for 86% of brand revenue, grew by double digits across all three brands. The Americas, which now represent 31% of group revenue, grew 21.8%. Greater China increased 8.6%, while the rest of Asia-Pacific rose 19.3%.

The Zegna brand’s DTC sales grew 18%, entirely through comparable-store growth. The company also said its five-day Villa Zegna event in Los Angeles helped drive client interest.

“We welcomed friends of the brand to discover exclusive collections,” Gildo Zegna, chairman and CEO of Ermenegildo Zegna Group, said during the call. The event delivered “results in terms of coverage, recognition and client interest that exceeded our expectations.”

Bernstein said Zegna is “reaping the benefits of its HNWI exposure and strong momentum in the Americas.” The group is now applying the same retail-first strategy to Thom Browne and Tom Ford Fashion, while investing in clienteling, merchandising and selected new stores.

“Today, our priority is to selectively expand the retail network while deepening our relationship with existing customers,” Zegna said.

The results show how much luxury growth now depends on local high-spending customers and control of distribution. Zegna has both. Moncler remains strong in Asia, but is still more exposed to tourism and the timing of winter demand.

Paid luxury creator value fell 52% in June

The value generated by sponsored U.S. luxury fashion creator content fell 52% month over month in June, according to data provided exclusively to Glossy by influencer-marketing platform Traackr. Across the 148 luxury brands tracked, total Brand Vitality Score, or VIT, declined 13.5%, from 1.02 million in May to 883,856 in June. VIT measures creator volume, posting frequency, audience size and content performance.

Sponsored content accounted for just 4.1% of total VIT. Organic content made up the remaining 95.9%, despite declining 10.4% month over month. VIP creators, defined by Traackr as having more than 5 million followers, generated 57.1% of total luxury VIT and were the only major tier to stay close to flat, declining 1.3%. Mega-creator VIT fell 29.4%, while micro-creator VIT declined 39.9%.

Louis Vuitton ranked first with an 11.1% share of voice, narrowly ahead of Gucci at 10.9%. Christian Louboutin placed third despite appearing in posts from 921 creators, compared to Louis Vuitton’s 2,861. Its creators had the largest average audience among the top 10 brands. Chanel worked with the most creators and generated the most posts, but ranked fourth by total VIT. Rolex recorded the highest engagement rate and posting frequency among the top 10.

Instagram remained the largest platform, accounting for 76.2% of luxury VIT, though its value fell 11%. TikTok declined 31.9%, while YouTube increased 13.1%.

In June, the brands with the most posts did not always generate the most value. Reach, engagement and high-profile organic mentions mattered more.

Executive moves

• Hélène de Tissot has been named Chanel’s chief financial officer, effective in October. She joins from Pernod Ricard and succeeds Philippe Blondiaux, who is retiring at the end of the year.
• Jonathan Saunders has been named executive creative director of Kate Spade New York, effective August 26. He will oversee product design and brand image as Tapestry works to revive growth at the label.

News to know

• Mulberry reported a 23% year-over-year increase in revenue for the 13 weeks ending June 27, with double-digit comparable growth across every region. More than half of its U.K. retail and digital sales came from returning customers. The results are an early win for CEO Andrea Baldo’s “Back to the Mulberry Spirit” turnaround, which has centered on full-price selling, recognizable handbags and closer relationships with existing customers. Mulberry’s gross margin reached 72% in its latest fiscal year, helped by reduced discounting, while its underlying pretax loss narrowed to £8 million, or $10.8 million, from £24.1 million, or $32.5 million. The next test will be whether the London Fashion Week debut of the brand’s new creative director, Christopher Kane, can turn renewed interest into another step up in full-price sales.
• Large fashion companies are now prohibited from destroying unsold clothing and footwear in the European Union. The rules, which took effect July 19, are likely to have an outsized impact on luxury, where brands have historically avoided heavy discounting and uncontrolled resale to protect scarcity. Companies will instead need to repair, reuse, donate or recycle excess inventory, adding pressure to improve demand forecasting and limit overproduction. The change may also push more merchandise toward controlled outlet networks and brand-operated resale programs.
• Gucci launched a Qixi campaign in China this week, starring brand ambassadors Wen Qi and Song Weilong. The campaign promotes GG Emblem handbags, accessories and Gucci Diamante jewelry through a story about friendship and romantic connection. Qixi remains an important test for luxury brands in China: The strongest campaigns increasingly rely on locally relevant talent and storytelling rather than treating the holiday as another gifting promotion.
• London Fashion Week’s September schedule will include McQueen, Burberry, Simone Rocha and Erdem, alongside Christopher Kane’s first collection for Mulberry and Marks & Spencer’s first runway show. The schedule also extends beyond traditional shows, with consumer-facing events planned by Selfridges, Dover Street Market and eBay. Under British Fashion Council CEO Laura Weir, the event is becoming more closely tied to retail and public participation, giving brands more ways to turn fashion-week attention into sales.

Stat of the week

More than 50%: The share of Mulberry’s U.K. retail and digital sales that came from returning customers during its latest quarter. The figure supports the company’s decision to focus on recognizable products and full-price client retention, rather than chasing growth through promotions.

Listen in

This week on the Glossy Podcast, Pink president Ali Dillon sits down with international reporter Zofia Zwieglinska to discuss how the brand is returning to growth by refocusing on 18- to 24-year-old shoppers. She also talks about expanding beyond intimates and sleepwear, and aiming to become young shoppers’ first stop at the mall this holiday season. Listen here.

Read on Glossy

American Eagle is turning RushTok and malls into its back-to-school sales engine. Target aims to strengthen its tween business with a new multi-year Pacsun partnership. Beyond Yoga’s lifestyle categories are now driving the majority of its revenue. Sephora expands Quiet Hours as retailers rethink accessibility. Curie is repositioning itself as a performance-focused deodorant brand. ClassPass expands beyond fitness into self-care, entertainment and experiences. Canadian brands are investing in U.S. fulfillment centers in response to new tariffs.