The gain increased 53 percent to € 47.9 million (~ $ 56 million), raising the profit margin to 5.2 percent of 3.3 percent. The adjusted EBIT was € 68.7 million, with a margin of 7.4 percent (8.4 percent in H1 2024).
Ermenegildo Zegna Group has published revenues of € 927.7 million (~ $ 1,085.4 million) in H1 2025, 3.4 percent lower as a DTC growth of 4.2 percent of wholesale extending, now 82 percent of brand sales. The profits increased 53 percent to € 47.9 million (~ $ 56 million), with a gross margin by 67.5 percent. Zegna Brand remained resistant, Thom Browne Fell and Tom Ford Fashion published losses.
DTC revenues grew 4.2 percent (6.1 percent organic) to € 698 million, reaching 82 percent of brand revenues (76 percent in H1 2024), and the wholesale brand decreased 27.1 percent (26.5 percent organic) to € 154.2 million, Zegna Group said in a press release.
The gross margin improved 67.5 percent (+110 basic points), helped by the highest DTC mixture, meanwhile, the operational gain was € 61.3 million (6.6 percent margin) compared to € 73.1 million (7.6 percent). The net financial elements and the dividing (FX) changed positive € 6 million (compared to € 24.8 million), helped by the rowing of the option and a favorable movement of US dollars/euro.
As for the revenues of brand and segment brand, Zegna of the Zegna brand were € 570.4 million, 0.8 percent more (2.6 percent organic). Thom Browne registered income of € 129.2 million, less 22.5 percent (21.7 percent organic). Tom Ford Fashion saw an income of € 152.7 million, 2.8 percent (3.8 percent organic), and textile with € 67.1 million revenues decreased by 6.6 percent.
Zegna delivered a adjusted EBIT of € 94.4 million, with margins that increase to 14.3 percent (150 basic points), backed by a stronger operational leverage and disciplined cost management. Thom Browne generated € 4.5 million, with margins that fell to 3.5 percent from 12.1 percent, pressured by lower revenues and initial costs linked to new DTC store openings. Tom Ford Fashion reported a loss of € 19.4 million, with margins of –12.7 percent, which reflect strong investments in retail, talent, IT systems and organizational infrastructure.
By region, revenues in the Americas increased 6.8 percent (9.3 percent organic) to € 262.7 million. Europe, the Middle East and Africa (EMEA) generated € 328.9 million, a 2.3 percent decrease (1.9 percent organic). The largest China fell 16.2 percent (14.7 percent organic) to € 223.1 million, while the rest of Asia-Pacific (APAC) increased 1.4 percent (3.4 percent organic) to € 111.5 million.
Capital spending totaled 54 million euros, mainly directed to the growth of the DTC network and the new shoe plant in Parma (Italy). The commercial working capital improved € 441.8 million, backed by reduced inventories and accounts receivable after wholesale rationalization. Net financial indebtedness stood at € 92.1 million, remaining widely stable.
“Our results of the first half of 2025 reflect the strategic decision of the group to invest in the DTC stores and the capabilities in our three brands, while continuing to support projects that feed our long -term growth ambitions,” he said Ermenegildo Gildo Zegna, President of Grupo y CEO. “In this context, we are satisfied with the operating results informed by the Zegna segment, where the strongest operational leverage and disciplined execution led to an improvement of the Ebit margin adjusted in 150 basic points. This strong performance helped balance the impact of the strategic transformation underway into the fashion of Thom Browne and Tom Ford.”
“With the strength of our philage, the authenticity of our brands and, above all, the clarity of our vision and talent of our team, we continue on the way to achieve our 2027 goals, despite the winds against the sector and the currency,” Zegna added.
Management reiterates confidence in achieving the objectives of 2027, citing the strongest profitability of the Zegna segment, the continuous investments of DTC and the group of integrated Italian supply (Filiera) of the group. The winds against the short term include softness of the sector and monetary volatility as Thom Browne and Tom Ford Fashion continue strategic transitions.
Fiber2Fashion News Desk (SG)
