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Zegna to Cut Capex in 2016 After Investing in Stores Worldwide

  • Suitmaker would be ``fine'' to lower capex for one year
  • Luxury-goods makers feeling pinch from China's slowdown
Bloomberg business news

Luxury Brand Zegna Sees 'Gradual Rebound' in 2016

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Ermenegildo Zegna, chief executive officer of the luxury-suit maker that bears his name, plans to reduce capital expenditure in 2016 after investing in stores globally even as customer traffic declined.

“We spent a lot of capex in the previous year,”  Zegna said in an interview in Hong Kong Thursday. “If we reduce capex for one year it would be fine because we have done” some major investments, he said. The company is doubling the size of some stores in London and has opened outlets in Japan and Macau.