Ermenegildo Zegna (ZGN) H1 2025 TU earnings summary

Executive summary

• H1 2025 revenues reached €928 million, down 3% year-over-year and 2% organically, with Q2 at €469 million, down 6% YoY and 3% organic.

• DTC channel grew 6% organically in H1 and 8% in Q2, offsetting a 27% decline in wholesale branded revenues.

• Americas and EMEA regions performed strongly, with the U.S. and Middle East showing notable momentum, while Greater China remained challenging.

• Strategic milestones included Temasek's 10% investment, Villa Zegna Dubai opening, and the appointment of Sam Lobban as Thom Browne CEO.

• Major retail and experiential initiatives included Villa Zegna in Dubai and new Salotto lounges in Beijing and Singapore.

Financial highlights

• H1 2025 group revenues were €928 million (-3% YoY, -2% organic); Q2 revenues were €469 million (-6% YoY, -3% organic).

• DTC revenues represented 82% of branded product sales in H1, up from 76% last year.

• Wholesale branded revenues dropped 27% YoY in H1, reflecting the strategic reduction in this channel.

• ZEGNA brand H1 revenues: €570 million (+3% organic); Thom Browne: €129 million (-22% organic); Tom Ford Fashion: €153 million (+4% organic).

• Americas H1 revenues: €263 million (+9% organic); EMEA: €329 million (-2% organic); Greater China: €223 million (-15% organic); Rest of APAC: €112 million (+3% organic).

Outlook and guidance

• Management expects continued DTC growth, with wholesale for Zegna to finish the year in line with H1 (-15%), Tom Ford Fashion wholesale low double-digit negative, and Thom Browne wholesale at -30% to -35%.

• No significant change in trends expected for H2; Americas, Gulf, and Europe to remain strong, Asia volatile.

• Consensus for full-year EBIT (€176 million) and top line considered reasonable, factoring in currency effects and wholesale trends.

• Forward-looking statements highlight risks from macroeconomic, geopolitical, and sector-specific factors.