The group reported a 20 percent increase in net profit and a return to cash surplus
Ermenegildo Zegna Group closed 2025 with a 20 percent increase in net profit to 109.5 million euros and a cash surplus of 52 million euros, reinforcing its expansion strategy despite ongoing volatility in the luxury sector.
Executive chairman Gildo Zegna said the group remains focused on growth while monitoring external risks. “While we remain vigilant to potential risks, our ambitions are unchanged — and so is our determination to deliver on them,” he said in an interview, highlighting progress in profitability and margins. He noted that, excluding the impact of Saks Global’s bankruptcy, operating profit would have aligned with market expectations.
Gross profit reached 1.3 billion euros, with margins improving to 67.5 percent from 66.6 percent in 2024. Adjusted operating profit stood at 163 million euros, including a 10 million euro provision tied to expected losses related to Saks Global’s Chapter 11 filing, compared with 184 million euros the previous year.
Total revenues reached 1.91 billion euros, representing organic growth of 1.1 percent, though down 1.5 percent at current exchange rates. The Zegna brand led performance with revenues of 1.18 billion euros, up 1.5 percent, or 4.7 percent organically. Tom Ford Fashion posted modest growth, with revenues up 0.8 percent to 317.1 million euros, while Thom Browne declined 14.7 percent to 268.5 million euros.
Zegna emphasized the increasing importance of direct-to-consumer (DTC) channels, describing them as a key driver of growth across the group. “We believe this strategy is good, and this driving force has started to become a propeller,” he said, noting plans to further expand DTC across Thom Browne and Tom Ford Fashion.
Regionally, the Americas continued to show resilience, with strong performance across the U.S., Mexico, Brazil and Canada. Zegna said the group does not expect a slowdown in the region in 2026, citing early investments and a competitive positioning in the high-end segment.
In Asia, the company reported cautious but improving trends, particularly in Hong Kong, while Chinese New Year trading exceeded expectations. The Middle East also remained stable, supported by a high-end clientele, with the region accounting for a mid- to high-single-digit share of total sales.
Looking ahead, the group plans to maintain momentum through retail expansion and brand activations. A Zegna Spring 2027 show is scheduled for Los Angeles on June 5, alongside the launch of Villa Zegna, an invitation-only private club concept. Thom Browne will stage its first Milan runway show on June 22 as part of efforts to strengthen its European presence.
Zegna also highlighted product innovation as a growth lever, pointing to the strong performance of Thom Browne’s collaboration with Asics. For Tom Ford Fashion, the group sees potential in increasing brand awareness under Haider Ackermann’s creative direction.
Retail expansion remains a priority, with upcoming store openings including Tom Ford flagships in Paris and additional locations in the U.S., as well as a second Zegna flagship on Rue Saint-Honoré planned for 2027.
Capital expenditure for 2025 totaled 102.9 million euros, with 60 percent allocated to retail development. The shift to a cash surplus from a net debt position the previous year reflects improved free cash flow and proceeds from the sale of treasury shares.
Despite macroeconomic uncertainty and geopolitical tensions, Zegna signaled confidence in its long-term strategy, anchored in high-end positioning, direct retail growth and continued investment in key markets.