Italian luxurious trend home Ermenegildo Zegna Group has reported first-half (H1) 2025 revenues of €927.7 million (~$1,085.4 million), down 3.4 per cent year-over-year (YoY), and a couple of per cent organically, as strategic wholesale streamlining offset development in direct-to-consumer (DTC).
The revenue rose 53 per cent to €47.9 million (~$56 million), lifting the revenue margin to five.2 per cent from 3.3 per cent. Adjusted EBIT was €68.7 million, with a 7.4 per cent margin (8.4 per cent in H1 2024).
Ermenegildo Zegna Group has posted revenues of €927.7 million (~$1,085.4 million) in H1 2025, down 3.4 per cent as wholesale streamlining offset 4.2 per cent DTC development, now 82 per cent of branded gross sales.
Revenue surged 53 per cent to €47.9 million (~$56 million), with gross margin at 67.5 per cent.
Zegna model stayed resilient, Thom Browne fell, and Tom Ford Trend posted losses.
The DTC revenues grew 4.2 per cent (6.1 per cent natural) to €698 million, reaching 82 per cent of branded revenues (76 per cent in H1 2024), and wholesale branded declined 27.1 per cent (26.5 per cent natural) to €154.2 million, Zegna Group stated in a press launch.
The gross margin improved to 67.5 per cent (+110 foundation factors), aided by the upper DTC combine, in the meantime the working revenue was €61.3 million (6.6 per cent margin) vs €73.1 million (7.6 per cent). The online monetary objects and international trade (FX) turned constructive €6 million (vs detrimental €24.8 million), aided by put-option remeasurement and a beneficial US greenback/euro transfer.
Model and phase smart, Zegna model revenues had been €570.4 million, up 0.8 per cent (2.6 per cent natural). Thom Browne recorded income of €129.2 million, down 22.5 per cent (21.7 per cent natural). Tom Ford Trend noticed a income of €152.7 million, up 2.8 per cent (3.8 per cent natural), and Textile with €67.1 million income was down 6.6 per cent.
Zegna delivered adjusted EBIT of €94.4 million, with margins rising to 14.3 per cent (up 150 foundation factors), supported by stronger working leverage and disciplined value administration. Thom Browne generated €4.5 million, with margins falling to three.5 per cent from 12.1 per cent, pressured by decrease revenues and upfront prices tied to new DTC retailer openings. Tom Ford Trend reported a lack of €19.4 million, with margins at –12.7 per cent, reflecting heavy investments in retail enlargement, expertise, IT methods, and organisational infrastructure.
By area, revenues within the Americas rose 6.8 per cent (9.3 per cent natural) to €262.7 million. Europe, Center East, and Africa (EMEA) generated €328.9 million, a decline of two.3 per cent (1.9 per cent natural). Higher China fell 16.2 per cent (14.7 per cent natural) to €223.1 million, whereas the Remainder of Asia-Pacific (APAC) edged up 1.4 per cent (3.4 per cent natural) to €111.5 million.
The capital expenditure totalled €54 million, directed primarily in the direction of DTC community development and the brand new shoe plant in Parma (Italy). Commerce working capital improved to €441.8 million, supported by decreased inventories and receivables following wholesale rationalisation. The online monetary indebtedness stood at €92.1 million, remaining broadly secure.
“Our first-half 2025 results reflect the Group’s strategic decision to invest in the DTC store network and capabilities across our three brands, while continuing to support projects that fuel our long-term growth ambitions,” stated Ermenegildo Gildo Zegna, Group chairman and CEO. “In this context, we are pleased with the operating results reported by the Zegna segment where stronger operating leverage and disciplined execution led to an improvement of the adjusted EBIT margin by 150 basis points. This strong performance helped balance the impact of the strategic transformation underway at Thom Browne and Tom Ford Fashion.”
“With the strength of our Filiera, the authenticity of our brands, and—above all—the clarity of our vision and the talent of our team, we remain on track to achieve our 2027 targets, despite sector and currency headwinds,” added Zegna.
The administration reiterates confidence in attaining 2027 targets, citing the stronger Zegna phase profitability, continued DTC investments, and the group’s built-in Italian provide chain (Filiera). Close to-term headwinds embody sector softness and foreign money volatility as Thom Browne and Tom Ford Trend proceed strategic transitions.
