Flagship Zegna Brand, Direct-To-Consumer Growth And Accelerating Sales In Greater China Help Offset Planned Wholesale Reductions
Ermenegildo Zegna Group reported a 10.3 percent increase in second-quarter revenue to 517.1 million euros, as strong performance from its flagship Zegna brand, continued expansion of its direct-to-consumer business and improving momentum in Greater China helped offset lower wholesale sales tied to the company’s retail-first strategy.
Organic revenue rose 11 percent during the three months ended June 30, with direct-to-consumer sales increasing 16.4 percent to 410.9 million euros. The channel continued to drive the group’s growth as all three fashion brands recorded double-digit gains through their own stores and e-commerce platforms, while wholesale revenue declined as Zegna continued reducing third-party distribution in favor of higher-margin direct sales and closer relationships with customers.
The Zegna label remained the group’s strongest growth engine, with revenue rising 16.9 percent to 324.3 million euros, supported by double-digit direct-to-consumer growth across every region. Thom Browne reported revenue of 64.9 million euros, flat on a reported basis but up 2.7 percent organically as retail gains were offset by the brand’s ongoing wholesale rationalization. Tom Ford Fashion generated revenue of 89.1 million euros, up 4.5 percent, or 7.1 percent organically, helped by demand for Haider Ackermann’s Spring collection. Revenue from the group’s textile business declined 3.6 percent to 35.8 million euros.
Geographically, the Americas delivered the strongest performance, with revenue rising 20 percent to 165.3 million euros on broad-based retail growth across all three brands. Greater China also showed a notable improvement, with revenue increasing 12.2 percent and accelerating from the first quarter, a positive sign for a luxury market that has remained uneven over the past year. Europe, the Middle East and Africa posted a more modest 1.3 percent increase as higher direct-to-consumer sales were partly offset by weaker wholesale demand, while the rest of Asia-Pacific grew 11.5 percent, led by Korea and Japan.
For the first six months of the year, revenue increased 6.4 percent to 987.3 million euros, while organic growth reached 9.3 percent. The Zegna brand continued to account for the majority of the group’s expansion, with first-half revenue climbing 11.2 percent to 634.6 million euros, while Tom Ford Fashion maintained steady growth and Thom Browne showed signs of stabilizing despite its ongoing distribution reset.
Executive Chairman Gildo Zegna said the results reflected the company’s long-term strategy of strengthening direct relationships with clients.
“The performance reflects the strength of our client-centric model,” he said. He also pointed to the Villa Zegna event held in Los Angeles in June as part of the company’s broader client engagement strategy, describing it as “a model developed over time on an authentic legacy and supported by our unique Italian filiera [pipeline].”
Commenting on the group’s other brands, Zegna added: “I am equally encouraged by the performance of Thom Browne and Tom Ford Fashion. Their results confirm that the actions underway follow the right trajectory, although we are conscious that it is still the beginning of the journey and we must remain patient to see progress over time. As we move through the rest of the year, we remain determined and disciplined to invest in the right priorities to deliver on our ambitions.”
Investors will now be looking for signs that the improving momentum in Greater China can be sustained through the second half, while watching whether continued double-digit growth in direct-to-consumer sales can continue to offset the group’s deliberate reduction in wholesale distribution. They will also be monitoring whether Tom Ford Fashion can build on the early success of Haider Ackermann’s collections and whether Zegna’s retail-focused strategy continues to support organic revenue growth across its portfolio.