Moncler’s most muted quarter and Zegna’s US expansion will provide clues to whether the two Italian luxury groups can sustain their transformations.
Moncler delivered its weakest performance in over a decade during the first quarter, with profits plummeting 42% year-over-year as the brand grapples with slowing demand for its signature puffer jackets and premium outerwear. The group’s revenue fell 11% to €539 million, missing analyst expectations and forcing a reassessment of its recent expansion strategies in Asia and North America.
The decline reflects broader challenges across the luxury sector, where consumers are increasingly selective about non-essential purchases. Moncler has been actively restructuring its product mix, emphasizing its high-end Grenoble line while scaling back on mass-market offerings. Similarly, the company’s strategic partnership with LVMH’s 24 Hours Mode venture underscores its pivot toward younger, digitally savvy demographics.
On the other side of the luxury spectrum, Ermenegildo Zegna has been aggressively expanding its footprint in the United States. The Milan-based textile dynasty recently opened new flagship stores in New York and Los Angeles, aiming to tap into the robust appetite for premium menswear among affluent American consumers. Zegna’s first-quarter results showed revenue growth of 6%, driven primarily by increased demand for its tailored suits and ready-to-wear collections.
Zegna’s chief executive, Andrea Sole, has positioned the group as a vertically integrated luxury house, controlling everything from premium yarn production to final garment manufacturing. This strategy allows Zegna to maintain quality standards while offering competitive pricing—a delicate balance in today’s luxury market.
Both companies face critical junctures as they navigate post-pandemic consumer behavior, currency fluctuations, and evolving distribution channels. Investors will be closely watching how Moncler recovers from its current slowdown and whether Zegna’s US investments yield sustained growth. The coming months could determine which brands successfully adapt to the new era of luxury consumption.