Ermenegildo Zegna (ZGN) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenues reached €459 million, down 1% year-over-year, with ZEGNA and TOM FORD FASHION brands delivering growth and Thom Browne declining due to wholesale channel streamlining.

• DTC channel drove growth, up 5% year-over-year, now representing 81% of branded product revenues.

• Americas led regional performance with 9% organic growth, while Greater China remained weak, down 12%.

Financial highlights

• ZEGNA brand revenues were €293 million, up 3% year-over-year, driven by DTC growth in EMEA and US.

• Thom Browne revenues were €64 million, down 19% organically, mainly due to wholesale reduction.

• TOM FORD FASHION revenues reached €67 million, up 3% organically, with DTC up 9%.

• Textile product line declined 9% due to lower demand from external luxury brands.

• DTC channel revenues increased 5% to €345 million, now 81% of branded product sales.

Outlook and guidance

• Low single-digit EBIT growth for 2025 reaffirmed, with price increases planned to offset US tariff impacts.

• Management remains vigilant amid geopolitical and economic uncertainties, focusing on brand strength and customer proximity.

• Greater China expected to remain negative for the year, but with a softer decline as the year progresses.

• Wholesale channel expected to remain a drag in 2025, with improvement anticipated from 2026.