Ermenegildo Zegna is planning vertical integration -- whether it’s leather, apparel or accessories. The Italian luxury house is open to acquiring other textile manufacturers or a fashion brand that’s strong with younger shoppers. An acquisition would broaden the company’s ability to manufacture fabrics or fibers, for instance, and would also be less expensive than purchasing a new brand. Zegna manufactures its own fabrics, knitwear and yarns, and also sells those products to other brands.

The company would also consider acquiring a fashion company. But potential acquisitions are not likely to be immediate. In 2022, Zegna’s focus would be on growing organically, in part because of the uncertain trajectory of the pandemic. Ermenegildo Zegna is a global leader in menswear. It expects 2022 sales to be 11 percent higher than this year’s.

The company isn’t as profitable as peers. Retail space productivity at less than three million euros per store is one reason. Fabric manufacturing for third parties is likely another factor depressing profitability. The recent trend toward more casual dressing, which has been accelerated by the pandemic, has put the luxury suit maker on its back foot. Zegna wants to decrease its share of formal wear and increase its leisure wear sales to more than half of revenue by 2023.