Zegna Group reports slight dip in revenues citing 'challenging environment'

The Ermenegildo Zegna Group has reported a slight dip in revenues of -1.5% for the financial year of 2025, to €1.91 million (£1.65 million) compared to 2024, citing a "challenging environment for the sector".

Revenues, organically and on a constant currency basis, slightly increased by 1.1%, signifying that external factors - potentially including currency movements, acquisitions or one-off effects - impacted the company's bottom line.

The group, which operates the three brands Zegna, Thom Browne and Tom Ford Fashion, announced a profit of €109.5 million (£94.5 million) for the full year of 2025, up 20% year-on-year from €90.9 million (£78.4 million) in 2024. The performance was supported by higher financial income and foreign exchange gains, mainly due to favourable foreign exchange rates and a lower effective tax rate.

Its adjusted EBIT (earnings before interest and tax) for 2025 was €163.0 million (£140.6 million). The company noted that this included a €10 million provision for expected losses on trade receivables related to the luxury retail holding company Saks Global, which owns Neiman Marcus and Saks Fifth Avenue among others and filed for Chapter 11 bankruptcy protection in January.

Breaking down the results by brand, Thom Browne saw a decrease in revenues of 14.7% year-on-year at €268.5 million (£232.6 million), while Tom Ford Fashion recorded revenues of €317.1 million (£274.7 million), up slightly by 0.8% compared to 2024, and Zegna recorded revenues of €1.18 billion (£1 billion), up 1.5% year-on-year.

Speaking on the annual results, Ermenegildo “Gildo” Zegna, Executive Chairman of the Ermenegildo Zegna Group, said that the Group delivered "solid revenue and net profit growth despite a continued challenging environment for the sector".

Looking ahead, he noted that the group was expecting "additional uncertainty across the sector" due to "recent developments in the Middle East".

He added: "In this more complex environment, our priorities remain clear: disciplined growth, strong cash generation, and rigorous execution to deliver on our targets. While we remain vigilant to potential risks, our ambitions are unchanged - and so is our determination to deliver on them, together."

Last November, the group announced a leadership reshuffle that has seen the former CFO and COO, Gianluca Tagliabue, assume the role of Group CEO as of January 2026, with a new CFO stepping into Tagliabue's previous role and new Co-CEOs announced for the Zegna brand. In his role, he is going to “focus on safeguarding the legacy and integrity” of the group’s three brands while “continuing to drive long-term value creation”.