Ermenegildo Zegna (ZGN) Q4 2025 TU earnings summary

Executive summary

• FY 2025 revenues reached EUR 1.917 billion, down 1.5% year-over-year but up 1.1% organically, with Q4 revenues at EUR 591 million, up 4.6% organically, driven by strong DTC performance.

• Zegna brand led growth, achieving EUR 1.2 billion in annual revenues and a 7% organic increase in Q4, with strong DTC performance, especially in Americas and EMEA.

• Strategic focus on DTC led to robust growth across all brands, while wholesale declined as part of a deliberate channel strategy.

• Leadership transition completed, with Gianluca Tagliabue as Group CEO and new generation family members as Co-CEOs of Zegna brand, effective January 2026.

Financial highlights

• DTC channel in Q4 grew 10% organically, now representing 82% of branded revenues for the year; wholesale branded revenues declined 20% organically.

• Zegna DTC revenues grew 10% in Q4, accounting for 88% of brand revenues; Americas and EMEA posted double-digit growth.

• Zegna brand accounted for 62% of FY revenues, Thom Browne 14%, and Tom Ford Fashion 17%.

• Americas delivered +16% revenue growth in Q4, EMEA +7%, while Greater China declined 10% in Q4.

• Wholesale channel declined, with Zegna down 17% in Q4 and Thom Browne down 14% in Q4 and 40% for the year.

Outlook and guidance

• DTC momentum expected to continue, with Americas and Gulf area leading growth; China expected to remain volatile.

• Wholesale channel to remain negative in 2026, with high single-digit decline at group level and low double-digit for Thom Browne.

• EBIT margin for 2026 expected to be flattish due to FX headwinds, with some mitigation from hedging.

• Price/mix to remain the main growth driver, with mid-single-digit price increases planned to offset currency impacts.

• Management remains prudent amid a volatile environment, focusing on core values and strategic priorities.