Zegna Group talks strategy and future pathways after strong 2025 results

Ermenegildo Zegna reported revenues of 1.9 billion euros in 2025, an organic increase of 1.1 percent (-1.5 percent year-over-year), and a net profit of 109.5 million, up 20 percent from 90.9 million in 2024. This performance was supported by higher financial income and foreign exchange gains (41.5 million and 9.0 million euros, respectively), mainly due to favourable exchange rates and a lower effective tax rate (22 percent in 2025, compared to 30 percent in 2024).

Thom Browne, set to show in Milan in June, recorded a 14.7 percent decline

Revenues came from the Zegna brand at 1.18 billion (+1.5 percent), Thom Browne at 268.5 million (-14.7 percent), and Tom Ford Fashion at 317.1 million (+0.8 percent).

The group reported an EBIT of 163 million (173 million net of the 10 million provision for expected credit losses related to Saks Global's Chapter 11) and proposed a dividend of 0.12 euros per ordinary share.

Group's net financial position is positive at 52 million as of December 31, 2025

The gross profit margin was 67.5 percent compared to 66.6 percent in fiscal year 2024. The group's net financial position was positive at 52 million as of December 31, 2025, compared to a net financial debt of 94 million as of December 31, 2024.

“In 2025, our group achieved solid revenue and net profit growth, despite a persistently challenging environment for the entire sector. Revenues reached 1.9 billion, with an organic increase of 1.1 percent, while net profit stood at 109 million, up 20 percent from the previous year. We also ended the fiscal year with a net cash position of 52 million, further strengthening the group's financial flexibility,” explained Ermenegildo “Gildo” Zegna, executive chairman of the Ermenegildo Zegna Group.

Ermenegildo Zegna Credits: Zegna Group

During this afternoon's call with analysts on Friday, March 20, Zegna discussed the company's strategy, which underpins the strong results achieved in the fiscal year and will increasingly shape its future path. Zegna also elaborated on recent developments in the Middle East, which have added another layer of uncertainty to the sector.

Gildo Zegna: "targeted growth, solid cash generation and rigorous execution of our plans to achieve set goals"

“In this particularly complex scenario, our priorities remain clear: targeted growth; solid cash generation; and rigorous execution of our plans to achieve our set goals. While we remain mindful of potential risks, our ambitions do not change, nor does our determination to achieve them together. The Middle East remains an important region for our group. Although we are adapting our activities to reflect the situation in the short term, we expect it will continue to play a significant role in our business, particularly thanks to the resilience of our customers,” said Zegna.

Regarding customer loyalty, the executive chairman emphasised the importance of the Zegna brand's roots. Similar emphasis is placed on the other two brands: Tom Ford and Thom Browne. The company's chairman recalled the success of the Tom Ford show in Paris, designed by Haider Ackermann. The new Tom Ford collection is a dialogue between attracting opposites: chicness and casualness, risk and confidence.

The company is also working on the upcoming Thom Browne show, scheduled for Milan on June 22. Last month, the American designer presented the autumn/winter 2026 ready-to-wear collection in San Francisco. Gildo Zegna also mentioned that Asics and Thom Browne unveiled their first sneaker on the Gq Bowl runway.

Memorie is Zegna's new "olfactory wardrobe"

The Zegna collection, designed by artistic director Alessandro Sartori and presented in Milan, drew on the brand's DNA and history. It was set in an imaginary wardrobe filled with real items from the family wardrobe of Gildo, the group's executive chairman, and Paolo Zegna. Both are members of the third generation of the Zegna family.

Featuring personal pieces and inherited garments, this collection stems from a love of weaving and wearing. It reflects a strategy based on a brand vision that increasingly embraces lifestyle and culture. Fragrances, for example, are an important chapter in this scenario. Memorie is, in fact, Zegna's new "olfactory wardrobe".

Six fragrances encapsulate the entire heritage of the Biella-based brand, where each composition is a memory, a specific place, a gesture. Zegna perfumes write a new page for the label, starting from its roots, “the most precious thing we have”.

Ermenegildo Zegna sponsors Italian Pavilion at Venice Art Biennale 2026

Roots and DNA, therefore, but also culture. It is no coincidence, explained Gildo Zegna, that Ermenegildo Zegna is the official sponsor of the Italian Pavilion at the Venice Art Biennale 2026, scheduled from May 9 to November 22. The initiative strengthens the company's ties with the world of contemporary art and the promotion of Italian culture.

The Italian Pavilion, curated by Cecilia Canziani, will present the project by artist Chiara Camoni entitled "Con te con tutto", a work that invites reflection on the relationship between matter, time and shared practices. According to the company, this sponsorship continues a path of support for creativity that is part of the group's industrial and cultural history.

In conjunction with the Biennale, Oasi Zegna will host a solo exhibition by Camoni from May 22 to November 22, curated by Ilaria Bonacossa. This will be an opportunity to create a dialogue between the work, the natural landscape and the company's textile heritage.

Zegna to present its collection in Los Angeles, outside Milan Fashion Week calendar

Other events outside Italy will nurture the bond with international clientele, such as Zegna's summer 2027 show. The brand will present its collection in Los Angeles, outside the traditional Milan Fashion Week calendar.

The show will take place on June 5 to coincide with Villa Zegna, the brand's temporary private club, which is scheduled to open immediately after the show and remain in Los Angeles for a few days.

Returning to the company's accounts, as explained during the analyst call by Gianluca Tagliabue, chief financial officer, gross profit in fiscal year 2025 reached 1,294.0 million euros, compared to 1,296.6 million euros in full year 2024, with a gross margin of 67.5 percent compared to 66.6 percent in full year 2024. “This increase was mainly driven by the channel mix, with direct-to-consumer sales rising to 82 percent of total branded product revenues in full year 2025 (compared to 78 percent in 2024).”

Selling, general and administrative expenses amounted to 1,033.9 million euros (53.9 percent of revenues) in 2025, compared to 1,008.3 million euros (51.8 percent of revenues) the previous year. The increase primarily reflects investments to support future growth, including personnel costs, higher IT spending and the continued development of the retail network.

It also includes 10 million euros in provisions for expected trade credit losses related to Saks Global, following its voluntary reorganisation petition under Chapter 11 of the US bankruptcy code. The impact of expenses on revenues was also affected by negative operating leverage from lower revenues, particularly for Thom Browne.

Marketing expenses in 2025 amounted to 120.7 million euros, compared to 121.4 million euros in 2024. The impact on revenues was substantially unchanged despite a greater number of activations, reflecting a more targeted and efficient marketing approach for the three brands. The group reported an operating profit of 139.5 million euros, compared to 166.9 million euros in 2024.

Outlook for the current year

“Recent developments in the Middle East have increased uncertainty regarding the global economic outlook in 2026 and reduced visibility on demand for luxury goods. The group's management confirms that it remains focused on achieving its 2027 targets, while acknowledging the potential risks associated with the duration of the conflict and its possible impact on global growth and consumer demand,” the management concluded when discussing the outlook for the current year. The company will present its first-quarter results on April 30.

This article was translated to English using an AI tool.

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Alessandro Sartori

Ermenegildo Zegna

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