Ermenegildo Zegna (ZGN) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 revenues were €398 million, up 0.2% year-over-year and 3.6%–4% organically, driven by strong DTC channel growth of 9%–9.1% and robust performance in the Americas and EMEA, while Greater China showed sequential improvement.

• Nine-month 2025 revenues totaled €1.3 billion, down 2%–2.3% year-over-year and flat organically, with EMEA as the largest region, followed by Americas and Greater China.

• DTC accounted for 82% of branded product revenues in the first nine months, up from 77% in 2024, highlighting the strategic focus on direct channels.

• Wholesale revenues declined sharply as the group continued to rationalize this channel in favor of DTC.

• Management remains confident in mid-term targets despite ongoing industry challenges and currency fluctuations.

Financial highlights

• ZEGNA brand Q3 revenues were €249 million, up 2% year-over-year and 5.6%–6% organic, led by DTC growth in EMEA and Americas.

• Thom Browne Q3 revenues were €48 million, down 4.6%–5% organic, with DTC up 10% but wholesale down sharply.

• TOM FORD FASHION Q3 revenues were €66 million, up 0.9%–4.3% year-over-year and organic, with DTC up 16% and wholesale down 19%.

• Textile segment was flat to down 4.6% year-over-year; other revenues grew 12%.

• Wholesale branded revenues fell 15% organic in Q3 and 23.4% organic in 9M 2025.

Outlook and guidance

• Management expects a challenging environment ahead due to consumer demand uncertainties and currency volatility, but remains confident in delivering on mid-term targets.

• Consensus for full-year revenues, EBIT, and gross margin at 67% is considered reasonable.

• Wholesale channel rationalization will continue selectively into next year, but at a lower intensity.