Ermenegildo Zegna (ZGN) H1 2026 earnings summary

Executive summary

• H1 2026 revenues reached €987.3 million, up 6.4% year-over-year and 9.3% organic, driven by strong DTC growth, which now represents 86% of branded revenues.

• Gross profit was €668 million (67.6% margin), supported by favorable channel mix despite FX headwinds.

• Adjusted EBIT rose to €74.5 million (7.5% margin), up from €68.7 million last year.

• Net profit was €28 million (2.9% margin), down from €48 million last year, mainly due to the absence of prior-year non-cash gains from put option remeasurement.

• Net cash surplus improved to €60 million at June 2026, up from €52 million at year-end 2025.

Financial highlights

• DTC revenues grew 16% organically, while wholesale branded revenues declined 13.3% organically.

• SG&A expenses were €531 million (53.8% of revenues), reflecting improved operating leverage and lower impairment costs.

• Marketing expenses were €68 million (6.9% of revenues), supporting brand initiatives.

• Free cash flow turned positive at €19.9 million, compared to a €23 million outflow in H1 2025.

• CapEx for H1 2026 was €64 million, up year-over-year, mainly for a new shoe plant in Parma.

Outlook and guidance

• Management remains focused on sustainable, profitable growth despite ongoing macroeconomic and geopolitical uncertainties.

• Zegna segment adjusted EBIT margin expected around 15% for full year 2026, with a long-term target of 15–20%.

• Group adjusted EBIT consensus for 2026 is €195 million, considered reasonable.

• 2027 guidance confirmed at €2.2 billion revenue and €250 million EBIT (lower end of range).

• Thom Browne H2 2026 EBIT expected to return positive, bringing full-year EBIT close to breakeven.

• Tom Ford Fashion expected to have a slightly negative adjusted EBIT for full year 2026, with break-even targeted in the near term.

• Group tax rate expected at 28–30% for full year.