Zegna Group Posts Strong Profit Growth Despite Revenue Dip Driven by DTC Success

The Zegna Group has reported its financial results for the first half of 2025, closing the period with revenues totaling €928 million. While this reflects a modest 2% decline at constant exchange rates on an organic basis, the luxury fashion house demonstrated robust profitability and strategic channel growth. A significant highlight was the strong performance of its Direct-to-Consumer (DTC) channel, which achieved an impressive 6% organic growth, underscoring the success of its customer-centric approach.

Despite the slight dip in overall revenue, the Group's net profit surged by an impressive 53% compared to the first half of 2024, reaching €48 million. This substantial increase in profitability indicates effective cost management and operational efficiency. Gross profit for the period stood at €626 million, resulting in a healthy gross profit margin of 67.5%. Furthermore, adjusted operating profit (EBIT) reached €69 million, maintaining an operating margin of 7.4%. As of June 30, 2025, the Group's net financial debt remained stable at €92.1 million, consistent with the figure reported at the end of December 2024.

A key driver of the Group's positive financial health was the exceptional performance of the Zegna segment. This core brand saw its operating profit significantly improve by 150 basis points, reaching an impressive 14.3%. Ermenegildo "Gildo" Zegna, Chairman and CEO of the Ermenegildo Zegna Group, expressed particular pride in this achievement, noting that "favorable operating leverage and rigorous implementation of key projects generated a 150 basis point improvement in operating margin." This strong showing by the Zegna brand played a crucial role in mitigating the negative impact on operating profit stemming from ongoing strategic transformations within the Thom Browne and Tom Ford Fashion segments.

Chairman and CEO Gildo Zegna emphasized that these positive results are a testament to the Group's clear strategic vision. He stated, "The results for the first half of 2025 attest to the strength of our strategic vision to strengthen the DTC channel and elevate the operational efficiency of the stores for our three brands, as we continue to invest with determination in strategic projects that fuel our long-term growth ambitions." This commitment to enhancing direct customer engagement and optimizing retail operations is central to the Group's sustained success.

Looking ahead, Gildo Zegna concluded with a message of confidence and determination, despite prevailing industry challenges and currency pressures. He affirmed, "Thanks to the strength of our supply chain, the authenticity of our brands, and—above all—the clarity of our vision and the talent of our team, we remain firmly focused on achieving the goals set for 2027." This steadfast commitment, underpinned by robust internal strengths and a clear forward-looking strategy, positions the Zegna Group to navigate the dynamic luxury market effectively.