Ermenegildo Zegna group: Sales decline continues in second quarter

The Italian fashion group Ermenegildo Zegna NV (Zegna) saw a decline in sales in the second quarter of the 2025 financial year. This was mainly due to the continued weakness in demand in China. Losses in Europe also contributed to the decline.

According to preliminary figures published by the company on Wednesday, group sales amounted to 468.9 million euros in the period from April to June. This represents a decrease of 5.7 percent compared to the same quarter of the previous year. Adjusted for exchange rate changes, revenue fell by 2.6 percent.

Growth in the company's own retail segment fails to offset decline in wholesale

In the company's own retail segment, sales increased by 3.3 percent (currency-adjusted +7.5 percent) to 352.9 million euros. However, this was not enough to fully compensate for the significant losses in the wholesale business. Sales in this distribution channel fell by 33.6 percent (currency-adjusted -32.5 percent) to 74.8 million euros. The company attributed the decline to a targeted streamlining of the wholesale business in favour of its own retail activities.

In the Zegna segment, sales fell by 2.6 percent to 327.0 million euros. Currency-adjusted, however, sales increased by 1.0 percent. The Tom Ford Fashion division achieved a sales increase of 2.1 percent (currency-adjusted +4.1 percent) to 85.2 million euros.

Thom Browne appoints new CEO

In the Thom Browne segment, revenue slipped by 25.9 percent (currency-adjusted -23.9 percent) to 65.1 million euros. According to the group, the significant decline was partly due to the strategic restriction of wholesale distribution.

The company also announced a change in leadership at the brand. Rodrigo Bazan will step down as CEO of Thom Browne on 31 August to pursue another opportunity. His successor has already been determined. Sam Lobban will take over the management of the label on 2 September. He joins from the US retailer Nordstrom, where he most recently served as Executive Vice President and General Merchandising Manager for Apparel Designer.

Losses in China and Europe weigh on sales performance

The group's sales performance was also impacted in the second quarter by weak demand in Greater China. Revenue there shrank by 21.3 percent (currency-adjusted -17.1 percent) to 99.8 million euros. In the remaining markets of the Asia-Pacific region, sales fell by 3.3 percent (currency-adjusted -1.0 percent) to 55.7 million euros.

Sales in the EMEA region, which includes Europe, the Middle East and Africa, also fell short of the previous year's level. They shrank by 2.9 percent (currency-adjusted -1.9 percent) to 174.8 million euros. Sales in America increased by 4.5 percent (currency-adjusted +9.8 percent), reaching 137.7 million euros.

In the first six months as a whole, group sales amounted to 927.7 million euros. This corresponds to a decrease of 3.4 percent (currency-adjusted -2.0 percent) compared to the same period of the previous year.

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