Good morning everyone. Thank you for joining the Ermenegildo ZEGNA Group Q3 2025 revenues Call. Please note that today's material and presentation are available under the zegnagroup.com website. Joining us today is the ZEGNA Group senior management team, including Gianluca Tagliabue, Group CFO and COO, and Paola Durante, Chief of External Relations. 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 these forward-looking statements. 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 statements cautionary statement included at Page 2 of today's presentation. I'll now hand over to Paola Durante.

Thank you operator, and good morning also from myself, and good afternoon to everybody. Welcome to our Group Q3 and 9 months 2025 revenues call. As usual, for Q1 and Q3 revenues, today's call is led by Gianluca Tagliabue and myself, Alice Poggioli is absolutely here with us. Our CEO, Mr. Gildo, will attend the February call on full year 2025 revenue. Let's then move to Page 7 of the presentation where we comment revenue trends. You know that commenting revenue trends, we want to focus on organic performance, which exclude foreign exchange impacts, and therefore, it is better to reflect the underlying business dynamics. This approach actually is particularly relevant to this year, given the sharp appreciation of the euro against the key currencies such as the U.S. dollar and the Chinese renminbi, among the others. And I have to say even more in this quarter and the next one. In Q3 2025, our group reported EUR 398 million in revenues, up 4% organic with a sequential acceleration of the DTC channel, which was up 9% in the quarter, with, I have to say, remarkable results across the 3 brands. 9 months revenues were EUR 1.3 billion. Let's then move to Page 8, and let's go directly to, I'd like to comment the performance by brand. In Q3, ZEGNA brand recorded revenues of EUR 249 million with a 6% growth. This performance was led by solid DTC, a solid performance in the DTC channel, particularly in EMEA and Americas. Thom Browne revenues of EUR 48 million in Q3. The brand, although remaining slightly negative in the quarter showed a sequential improvement in both channels. TOM FORD FASHION, which reported EUR 66 million in revenues was up 4% organic, which was driven by the DTC channel, also supported by the…

Thank you, Paola. So before heading to the Q&A session, I would like to share a few final remarks. Let me begin by highlighting the exceptional fashion shows presented by both TOM FORD FASHION and Thom Browne in Paris in this October. Both received enthusiastic recognition from the press and from our clients, reflecting continued progress along the path set for these brands. Talking about TOM FORD FASHION in particular, as Paola noted, the first Haider Ackermann collection for winter '25 arrived in the store at end of August, and it was well received and contributed to our quarterly results. Of course, these are early signs. And while we are pleased to see such a positive start, we are aware that the journey to fully unlock TOM FORD FASHION potential is still ahead of us and that it might not be a straight line. We must continue anyway building this momentum. On Thom Browne, let me highlight the recent events also held to celebrate the opening of the Ginza store in Tokyo. The brand hosted a series of curated experiences from a screening of the Thom Browne documentary presented by GQ Japan to a cocktail party, an intimate dinner with celebrities and friends of the brand, and the presence of Thom himself. This moment reflects the brand's emotional connection with its audience. We'll see more of this unfolding on Thom Browne social media channels in the coming weeks. Finally, turning to ZEGNA. We have already touched on the success of Drop 2, which saw an activation on September 1 and was launched alongside the campaign It’s Not a Suit, It’s a ZEGNA. With this collection, ZEGNA celebrated its heritage and the ongoing pursuit of excellence and innovation embodied by Vellus Aureum, the finest wool, Vellus Aureum means Golden fleece. The…

[Operator Instructions]. Our first question today comes from Anthony Charchafji with BNP Paribas.

The first one would be on current trading and any expectation that you could share into Q4? My second one would be on China and namely Mainland China performance at ZEGNA. Could you add a bit of color on what you're seeing in terms of traffic? And more importantly, if you're seeing rather the affordable part of the demand that is coming back and rather than the high end? That would be my second question. And my last one would be on the FX impact, not on top line, but rather on margin. What do you expect for this year or rather into next year? And do you think that it's a fair assumption to assume some kind of impact into next year?

Okay. Thank you, Anthony. Thank you for the 3 questions. Well, I'll leave to Gianluca and then if you have other comments, but on current trading and on China performance.

Anthony, so the current trading, so Q4 just started. So we, it's early to make a final comment after just a few weeks in any event, what I can anticipate, we are not seeing trends substantially different from the one of Q3. So we need to keep on executing. The performance so far has been not different in line. We need to remember a couple of things heading into Q4. First, as I said before, and that was also your third question is FX is steep in terms of delta between reported and organic in Q4 because if you remember, we had a USD around 103, 104 and that from November through January, that was probably the strongest moment for both USD and renminbi. And last year, we had a very solid Q4 with high single-digit organic in DTC. Anyway, having said that, the trend is not that different so far. In terms of China, giving color, I can give you colors by geography within GCR and some by cluster spending. So first, we are seeing that the top of the pyramid guests are performing well also in China, both on Vellus Aureum and Aureus, on the most sophisticated high price point suits. So we are seeing good traction on the top of the spending. We are not yet seeing solid, consistent indication on traffic and more affordable spending. That is what we are seeing. But from a geographic standpoint, we can report some improvement on Hong Kong in terms of trend. We see the, call it, second-tier cities performing slightly better. So I'm taking out Beijing and Shanghai, the other important cities, call it Shenzhen, Chengdu, Guangzhou, those cities are slightly performing better than the 2 big ones. But again, as I said, as Paola said, the environment is volatile. That's why we want to be cautious and that being cautious means for us betting on open to buy for next year, betting on CapEx and OpEx for next year and possibly also, and that is something we already mentioned. We are, we have been pruning the landscape of our network by wherever meaningful, trying to consolidate the business in fewer, better stores. This is something that started in '25 will continue in the next couple of years.

On ForEx impact in 2026, well, we can comment on our ForEx.

Of course, the impact does exist because it's, we hedge, but you have some still you have some mitigated impact on the bottom line. This year, we, I think we have hedged particularly well, both the USD and renminbi, this is very true for fall/winter '25 is also true for spring '26. So now the topic will be on how we handle prices in fall/winter '26, which will be the second part of the year. So, the hedging covers at this point, we are happy with the hedging we have done through spring '26 included.

The second question, operator? A set of questions.

Our next question comes from Adrien Duverger with Goldman Sachs.

I would also have three, if possible. So, the first one is if you could please provide us with a bit more information on the consumer environment across regions. So you already commented on China, but if you could give us a bit more on the U.S. and on Europe, especially around traffic, conversion rates and appetite to spend. My second question would be about the wholesale sector and the trends you're seeing so far in the second quarter and ahead of 2026. is the rationalization of the channel almost done? And do you expect it to be finished by the end of this year? Or could we still expect some impact into next year? And maybe my last question would be on TOM FORD. Could you comment on the performance there? And on the integration of the brand, if you could provide us a bit more color on this.

Okay. Okay. So three questions, very, let's say, articulated. On the consumer environment and cross region, maybe I'll just comment quickly on by-cluster performance, and I'll leave Gianluca to elaborate more on if he has comment. And then on wholesale Thom Browne and TOM FORD performance, I'll leave to immediately directly to Gianluca. So on by-regions, what we have seen in the third quarter is a continued solid growth by cluster of double-digit growth of the U.S. and the European cluster. And as I commented during the call, during the first part, a slight improvement on the GCR cluster to a mid-single-digit negative. I have to say that in the Americas, U.S. continue to remain very strong, but also LatAm. This is driven by, I would say, more than by traffic. Of course, traffic in our store is always, but really by the very strong work, good work that our people are doing and of course, the very well acceptance of our collections and the product because everything starts from there. And I have to say, I would say the same in Europe. Of course, in Europe, you have Middle East that continues to remain very strong. But even Europe, excluding Middle East, has done very well in the quarter.

In terms of wholesale, I think that most of the effort has been done in terms of selection, especially on the Thom Browne side. If I recall what is, which are the numbers of this year. We don't set numbers for next year. But we start from this year having Thom Browne declining 35% and mid-single digit -- mid-teens, sorry, mid-teens for ZEGNA and around 10% negative on TOM FORD. This is the result of different things. The conversions that we have been doing will continue next year selectively, of course, depending from, for instance, with some U.S. wholesalers, we are debating location by location. This will continue probably to a lower extent because most of the conversions we have already done, but the conversion trend will continue as long as we will find the opportunities to do it. There is still a selection of distribution on iconic items for ZEGNA. We are pretty much happy with the distribution at this point of, through wholesale. But definitely, we will continue limit as much as possible our iconic items that we would not like to be resold at discounts or in distribution markets that we don't want. And TOM FORD, minus 10% will be, overall, I think the comment for next year, I think, will continue some decline, but to a much lower intensity. That is driven by conversion, driven by the fact that we keep on selecting distribution on Thom Browne, of course, not to the level that we have seen in the last two years. So I think that we will see a much more muted decline still for next year of wholesale channel.

Okay. And TOM FORD FASHION, the last one. Overall performance, any comment? I don't know, Adrien, if was something specific but the performance, as we said, the quarter has benefited from several factors. But for sure, the good acceptance and good reaction of our clients of the first Haider collection for TOM FORD that I remind you is the one that showed in Paris in March, but touched the floor in the stores as usual a few months after. So it was introduced at the end of August, and this creates, in particular in the U.S., but in reality, also in Europe across all the regions, a very nice vibe. And so our clients, customers loyal, so existing customers, also new one came and bought and purchased the collection. So this has been for sure a positive factor. But the second one is the openings that we have done, some nice openings that are doing, that are also providing good revenues results. And as I was saying, of course, in the past few months, we have invested in the platform, in the people, in starting to create a CRM system. So we are still at the beginning, but all this step-by-step has done and is doing some results still at the beginning, as we said.

Just add one point. You have seen DTC in Q3 at plus 16%. We want to clearly, there is a space, but there is also a substantial comp component, which gives us comfort because we start seeing traction on assortment planning, on training of the people, the people on the field, the retail management. So we see the growth of DTC is not just space. There is an important comp component. On the wholesale, linking to what we said before, the decline, for instance, there is the impact of a few conversions, I name the most important ones last year, in Q3 of last year, we converted [Saks women]. We converted [Arroz men], we converted Puerto Banús in Spain. So some part of the new comp comes also from this conversion of wholesale locations that have been redirected into DOS directed operated store. In terms of geography, we have seen across the board, U.S. solid, EMEA very strong. GCR for growth from a small base has shown an interesting sequential improvement. So we are -- we report positive comp, wholesale affected by these three important conversions and good performance in the major regions for the brand.

Our next question comes from Oliver Chen with TD Cowen.

This is Nicolas Silvia on for Oliver. I know you just touched on the wholesale distribution. So continuing on with channel distribution, could you comment more on how ZEGNA is leveraging the direct-to-consumer network to drive growth? And then a second part is with FX impact, I agree that's definitely a headwind that we've seen across the sector. Could you touch more on how you're offsetting those costs and currency pressures that are posing a headwind in light of the recent tariff impacts that you mentioned?

Sorry, we need to ask you to repeat the two questions because we couldn't really get the line very clearly. If you can repeat maybe one and the other, sorry for asking, but really, there was a lot of noise.

Of course. Is this better?

That’s better.

So, starting over here. This is Nicolas Silvia on for Oliver. I know you touched on wholesale. So continuing on with channel distribution, could you comment more on how ZEGNA is leveraging the direct-to-consumer network to drive growth? And then just the second part I have here is with FX, I agree that's definitely a headwind we've seen across the sector. Could you touch more on offsetting those cost and currency pressures that are posing a headwind in light of the recent tariff impacts?

Okay. So, the first one is, in particular, on ZEGNA DTC network and the evolution, if I got it correctly. And the second one is regarding ForEx, given the ForEx headwind, how we are offsetting the cost of higher tariff increase in the U.S. So I'll leave to Gianluca.

So we drive positive trend on the retail side. I think I gave you some comments distinctively from boutique and outlet. So I start from outlet, which is probably the easiest one. That is not a driver of growth. it's on the opposite is a channel that we keep shrinking as soon as we see the possibility to do it and the driver there is, of course, the sell-through of the season. Of course, we are, our internal KPI that we monitor carefully is sell-through at full price because ZEGNA doesn't do any bargain at this point anymore. So as soon as we have good level of inventory on hand from leftovers, we reduce the outlet channels. So that is a driver of nongrowth within the retail environment. On the full price boutique, yes, we have this year, the number that you have seen, it's mostly comp. First remark, the number that reported, it's 7.4%. It's a growth organic is, I would say, almost entirely comp. And what is the driver behind the comp? It's conversion. Of course, we need to work, and that's the CRM machine that is behind the scenes. Of course, we cannot enjoy in this moment in some areas of our market, traffic. So, we need to generate ourselves the traffic. So, the outreach is laser-focused on bringing clients in, preparing the appointment with the selection for them. And this is the driver behind a good improving conversion trend. On the other side, so this mitigates in terms of number of tickets mitigates the decline coming from traffic. On the other side, the value of the ticket is increasing. It's increasing through AUR because we are elevating the offer in every season, whether it's Vellus Aureum, whether it's personalization, whether it's second skin, whether it's new…

Which means that we protect the sell-in margin.

We protect the sell-in margin. Then the rest is self-protected because you have OpEx and you have the revenues offsetting. So of course, as I said, now we need to add into the fall/winter '26. Our mindset is always to stay a low mid-single-digit growth of prices. We need to consider if this is enough everywhere. Probably there is also the tariff component in U.S., which might bring us a bit a touch up upwards. But definitely, these are the mechanics that we use to defend ourselves in an environment of currencies.

It's nice also to underline that we did in September this year, some price increase because of the tariffs, as you know, and the reaction from the customers were very positive. So, there was no, I would say, negative reaction. Of course, everything that we do in terms of price increase has to be always is an elaboration and an analysis done by the merchandising team looking at the full price collection and protecting the important price point of every collection. This is part of the job that Gianluca and the merchandise team does do every season, every collection. I don't know if we answered.

Our next question comes from Chris Huang with UBS.

I have three. The first one, just to follow up on the Q4 current trading commentary. If I look at your group DTC channel performance as a whole, the improvement in Q3 pretty much was in line with what your comps would have suggested. So, in light of the very impressive Q4 you had last year and Gianluca, I think your previous comments around trends so far unchanged in the fourth quarter, would it be possible that perhaps in Q4, we continue to see a high single-digit DTC growth at group level? So that's the first one. Secondly, on cluster, I just wanted to clarify a little bit here on the Chinese consumers, if it's down mid-single digit or high single digit. And related to that, so it seems like the Chinese consumers really accelerated in Q3 when the total X DTC is kind of in line. So, what other nationalities are probably moderating or normalizing a little bit, if you can give some color on that? And last but not least, on H2 margins. I think on the previous call, H1 call, you commented that for the full year, you're expecting the ZEGNA segment margins to land between 13% and 14%. But if I heard correctly, the 7% growth in DTC in Q3, you said was mostly driven by comps. So that is quite a good number to really see some operating leverage. So I'm just wondering if there's any update on the margin expectations you can give us for the ZEGNA segment for 2025.

Okay. Thank you for the three questions. So, the first one is on the follow-up on Q3. And in particular, if, and this is a question that you directed rightly to Gianluca, if we can deliver on a high single-digit Q4 growth for DTC. The second one is on the Chinese cluster, and then we go after. I'll ask Gianluca to comment the first one in the meantime.

Start from the Chinese cluster, the Chinese cluster has seen a high single-digit negative. And we have seen more stronger decline on Chinese abroad, although smaller in terms of incidents for us. The decline has been steeper for Chinese buying outside of Greater China region. But anyway, overall, has been on the high single-digit environment. In terms of Q4, I don't want to comment on the on the expectation by channel, by brand because it's, then it's, conceptually, we are trailing not different than what we have seen in Q3. Of course, we need to know that last year, we had a solid performance. So it will be more challenging. But so far, I would say, same trend than Q3. And if you want to have an indication, I would probably stick rather than by brand by geography, I think that the consensus out there today is reasonable. So overall, I think the consensus that is out on our website that we report for full year revenues look a good indication.

ZEGNA margin for full year, Chris was reminding that the comment we made in September that we were expecting ZEGNA margin around 13%, 14%. Of course, Chris, this was an indication we gave. I don't think this is the place at the moment to comment on margins. But just reminding you that the growth by comp is not something that is coming as a surprise for ZEGNA, it's something that is planned in our expectations and in our numbers. So, it's absolutely a nice very important growth, but is aligned with, or at least following, let's say, our expectations. Maybe a little bit better, but not much. Okay. I don't know if we answered this. If you don't have any follow-up, we can go to the next one.

Our next question comes from Chiara Battistini with JPMorgan.

I have a couple of follow-ups and maybe a curiosity. First question on ZEGNA. If you, if I can follow up asking about the mix, like the price mix and volumes and also the evolution for the ZEGNA brand between the recruitment of new consumers versus returning customers, what you're seeing from that point of view? The second question, a follow-up on TOM FORD. And I was wondering, given all the initiatives in place, the fact that the product under the new designer is ramping up the CRM and also the ongoing store rollout, is there any reason why we should not be assuming further acceleration sequentially for Q4 into year-end and also into next year from a DTC perspective? And then finally, more of a high-level question. There's been a lot of debate in the market lately about the build of the new fashion designers at different houses and this potentially reinvigorating and reigniting desire for bolder fashion and more outstated fashion. So potentially penalizing more understated brands. So I was wondering if you could share your views about this ongoing debate that there is in the market at the moment. Thank you, Okay.

On the price mix volume evolution for ZEGNA, is, okay, price mix is clearly very important, but I ask Gianluca if he wants to comment more also on the returning customers. On the further acceleration, why not let's ask Gianluca. And on the third one, sorry, Chiara, the theme and the debate is, if I understood well, but I'm not sure how that design are becoming even more important for the brand or that there was many changes in the design. Sorry, Alice is looking at me and saying, no, you don't understand anything.

So, No, I was wondering because there's been a lot of renewed enthusiasm around potential fashion trends and reigniting appetite for bolder fashion as some of the new designers or designers have moved.

I start from ZEGNA, I confirm that price mix is the biggest driver. Mainly comp is coming from price and mix. Of course, there is the like-for-like price increase. And as I said, the mix component of elevation of the content of the collection is the other component. So price mix is the major driver of comp. In terms of returning, recruiting new, we are seeing a good traction in new clients, especially retaining new clients. Of course, there is always someone coming in walking. The point is whether you create stickiness, you create a stickiness that you bring them in possibly through triple stitch, possibly through a knitwear. And then little by little, some of those go away, some return. The ones that are returning are our focus and we see good numbers over returning new clients and especially the objective is elevating the clients. So what we are always looking at is spending by cluster, we try to identify by the type of product that they buy if they have potential. And we intensify our activity around them in order to bring them above the 10,000, above the 25,000 threshold and finally above the 50,000 threshold that is our ZEGNA friend territory. So we, of course, the numbers, we are growing very well on the clusters above 25,000. On the lower spending, we see a good traction of returning new especially people that are coming in, maybe coming back to buy a second pair of triple stitch or buying, starting to buy a more broader total look. So I think it's a healthy proposition of clients staying, client entering and staying with us for a longer time.

TOM FORD FASHION and Q4, why not further acceleration? Okay. I ask Gianluca to answer, but I just remind you 2 things. One, of course, there is always a sort of wow effect when you have a new collection and this is something that we want to continue to keep it. But the first time, normally, it's a little bit more sound or strong. This is normal. It happens like this. But the second one is also for TOM FORD, the Q4 last year was a little bit more dense in terms of performance. So there is also for TOM FORD FASHION, a base of comparison effect. And I'll leave Gianluca if any further comments also on what we are doing on TOM FORD FASHION.

I think that the solid double-digit growth like we did in Q3 is something that we are happy with, especially because it's partially generated by Comp. I think that run rate, I think it's something that we are definitely pleased with. What we are doing is injecting into the machine of TOM FORD some of the lessons learned we have done with ZEGNA. For instance, we are injecting more and more CRM logic and approach. I think that the team is with the logic of TOM FORD but trying to intensify the drops of product in order to create the reason why they call the clients back. I think that in TOM FORD, as we, as I called out on ZEGNA, we have, we see the opportunity to increase the presence in the successful U.S. market. So next year, TOM FORD will open stores in U.S. We are also, I think we mentioned last time, we are working on a store in Paris. So there are different arrows for TOM FORD distribution. In terms of assortment, the collection, the team is working hard on the women's side. This is the biggest opportunity, both on the daywear as well as on shoes and handbags. So those are the areas of opportunity, the distribution as I said, notably on the Western world. And there is, I think, some mechanics in terms of merchandising, in terms of CRM that we are injecting cross-fertilizing among, across the different brands.

On the third question, Chiara, I started giving my view, but of course, this would be better off if Gildo would have been here. But next time, you can ask him as well. And of course, Gianluca will also give his own view. This is a debate that we are, in terms of, yes, fashion, well, I know people like to talk about by luxury fashion. And I think the reality is that innovation is what clients and what the clients want. Innovation has to be coherent with the brand's DNA. So ZEGNA is an innovative brand. We innovate in terms of garments. We innovate in terms of style. But as also our Creative Director explains and actually, there was an interview yesterday on a newspaper. The innovation comes always taking in consideration what was presented the season before. So it's not changing everything, but it has to grow within the DNA and within the legacy of the brand. And by doing this, you create a stronger brand, but also something new for the clients. So I don't think there is clients don't want to buy always the same things. I don't think so, but they want to buy something that is reason that has a meaning behind that has something that goes just, it's not only a garment but it means something because of the quality, because of how it's made, because of the values of the brands. And this is what I think is true today as much as in the past, maybe not always but in many periods of the history of the sector. This is my view, but sorry, okay, I cannot talk for our year, and I actually would be very happy to have him, to have the same question presented to him in February for the full year results. I don't know if Gianluca has...

Nothing to...

I don't know if there...

Our next question comes from Daria Nasledysheva with Bank of America.

This is Daria from Bank of America. I have 2 quick ones actually. Is there any way you could help us quantify the impact of Haider’s new collection on the acceleration this quarter, given you said that there is the initial wow effect that exists? And how should we be thinking about the pace of product rollout for next year as a percentage of revenues for the brand? And my next one, could you please comment on your thoughts about full year EBIT consensus as well, like you normally do? I know you commented on revenues but what about profitability?

Thank you for the follow-up. So in terms of quantification of either in the acceleration of some for fashion, I would, I mean, I'll leave Gianluca to give you some qualitative, but, and I think it's something that we will repeat what we said. But no, I don't think there is, not a way, but clearly, yes, there is a one effect, but Haider is designing the collection also the next one and plus is not only there is as we were saying is, let's say, a work together with having better people in stores, having better instruments in terms of CRM, having better collection, not only the either one but also the one that is -- we call it but is not the one. So it's having better merchandise in store. So being better in buying for the store. So it's, and also the marketing and the visibility effect that the collection designed by Haider has created. So it's a mix of everything. But I leave Gianluca to comment a little bit more.

Tough to identify what is the specific driver coming from the Haider collection. Let's remember that is part was mostly on the winter side that came through the quarter so not at the beginning of the quarter. So there has been definitely part was Haider, part was also the collection that was before the drop of the show collection that came, I think it was around…

June, July, July.

June.. July, the fall, but the collection...

Haider of... Of August, yes.

Of course, there is -- part of the quarter has been impacted by the specific fashion show collection, part was before. So I think it has had an effect in terms of curiosity to visit the show, visit the collection of the show but it's not only that one, that thing. In terms of consensus, I would reiterate what I said on revenues. I think that the consensus on full year for EBIT looks pretty reasonable. Of course, having always the line of thinking that we still have a couple of months which for us are still very important. And therefore, it's subject to the performance of the coming 2 months. But we think today that the consensus out there on revenues and EBIT looks pretty reasonable.

And -- if it's okay, Daria, we'll ask it otherwise.

No, no, no. I think that's good. And can you just comment on percentage of revenues of new product for TOM FORD throughout the next year?

Yes. okay. The drop or the, let's say, the delivery of TOM FORD collections. There is.

We will have, I think, on, November. November, second part of November, a first injection of spring and then the second will be in January. So the next will be, I don't remember the specific date, but will be around mid-November should be the first drop of spring in the floors.

Yes. Remember that the first drop is always the non-show collection. We call it spray, but in any case, apart from, this is the most important part in any case because the collection show for everybody for any fashion brand then represents a smaller part, not as small but a smaller part of the collection for the whole season. And the one that will start Okay. If there is the last one, I think, because I know there is also another company reporting in half an hour. So we might give you the time to prepare if anything. But if there are questions, we are very happy to answer.

We have one final question, which comes from Bhumi Kanabar with Jefferies.

It's Bhumi. Just 2 questions from me, if I may. So number one, could you add a little bit of color on what you're seeing in APAC ex China, given the very slight sequential decline there versus H1? I think every other region was an improvement. I know you mentioned Korea and Singapore, but any other regions to call out that weren't as, didn't go as well? And then number two, you mentioned you're happy with EBIT consensus for the year, but I just wanted to ask on gross margin. It seems that given the share of DTC revenues in the 9 months, there's a little bit of upside there. If you could comment on that.

Okay. leave Gianluca Tagliabue for the color of APAC [indiscernible] and EBIT consensus, sorry, gross margin consensus, not EBIT.

On APAC, I would call out, of course, Singapore is doing well, both for ZEGNA and also we have a new store of TOM FORD that is picking up after the opening. So I think we are seeing good momentum there in Singapore overall. In terms of Japan, I would say that we still see softness, especially on Japanese residents buying in Japan, which is the bulk majority for us. So we still see some softness. In Korea, we have seen some slight sequential improvement compared to the second quarter. Macau, we are not seeing good momentum. As I said before, Hong Kong, yes, Hong Kong, both traffic and also top line. And in China, I think I commented already before. So I don't have any other major Australia is not so important for us. In terms of, what was the second question was?

The gross margin consensus. As she said, I understand you are okay with EBIT consensus. Are you okay also with gross margin consensus, which is around 67%.

I think so. Yes, we are, I think that overall, the consensus directionally meaningful from what we say. I think if you say we have an upside and 2 year, we will see at the end of the year, if you are right. And for the time being, I would stick to the consensus.

I don't know if you have any. Otherwise, I'll leave to the operator.

We have no further questions. And so Paola, I will hand back to you.

Okay. So as usual, thank you so much for all your questions. We are here at your disposal for any follow-up that you have. And we will rejoin together on February 2 for the full year 2025 preliminary revenues. So thank you so much for the time you spent with us and speak to you soon.

Thank you, everyone, for joining us today. This concludes our call, and you may now disconnect your lines.