Zegna adjusted operating profit falls 11% after Saks Global provision

MILAN, March 20 (Reuters) - Italian luxury fashion group Ermenegildo Zegna JN0.F said on Friday its adjusted operating profit fell 11.4% to 163 million euros ($188.49 million) last year, after it booked a 10-million-euro allowance for expected losses on trade receivables linked to a Saks Global Chapter 11 filing.

• "Looking ahead, recent developments in the Middle East have introduced additional uncertainty across the sector," Executive Chairman Gildo Zegna said in presenting the results.

• Despite this, the group's ambitions and determination to deliver on them remained unchanged, he said.

• The Middle East accounts for a mid-to-high single‑digit share of the group's total revenues, executives said in a post‑results call with analysts.

• Stores in the region are now open, but footfall remains lower, they said.

• They said it was too soon to assess the possible impact of the Middle East crisis on the group's 2026 results, as it will largely depend on the duration and possible implications for the global economic outlook.

• On Saks Global, executives said they were reassured by the validity of the US luxury retailer's plan and believe it will remain an important partner.

• They said the year had started well overall, with a slightly better trend in direct-to-consumer sales compared with the fourth quarter.

• Revenues at Zegna group rose 4.6% on an organic basis in the fourth quarter thanks to double-digit growth in the Americas, the group reported earlier this year.

($1 = 0.8648 euros)