Zegna Group profit up 53 percent in H1 2025

The Ermenegildo Zegna Group (Zegna Group) reported a profit of 47.9 million euros in the first half of 2025. This represents a 53 percent increase compared to the 31.3 million euros recorded in H1 2024. Adjusted EBIT totalled 68.7 million euros, compared to 80.9 million euros in H1 2024. Revenues reached 927.7 million euros, marking a 3.4 percent year-on-year decrease and a 2 percent decrease on an organic basis. The direct-to-consumer channel performed significantly, achieving six percent growth organically.

Results demonstrate strength of group’s strategic vision to strengthen direct-to-consumer channel

“The H1 2025 results demonstrate the strength of our strategic vision to strengthen the direct-to-consumer channel and elevate the operational efficiency of our three brands’ stores,” commented chief executive officer Ermenegildo “Gildo” Zegna in a statement released on September 5. “At the same time, we continue to invest decisively in strategic projects that fuel our long-term growth ambitions. In this context, we are pleased with the operating results recorded by the Zegna segment, where stronger operating leverage and disciplined execution led to a 150 basis point improvement in the adjusted EBIT margin. This strength helped mitigate the negative impact on operating profit stemming from the ongoing strategic transformation at Thom Browne and Tom Ford Fashion.”

“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 targets set for 2027, despite industry challenges and currency pressures,” Zegna added.

As highlighted by management in the statement, the adjusted EBIT for the Zegna division was 94.4 million euros. This resulted in an adjusted EBIT margin of 14.3 percent, compared to 12.8 percent in H1 2024. The adjusted EBIT for the Thom Browne brand was 4.5 million euros, with an adjusted EBIT margin of 3.5 percent, compared to 12.1 percent in H1 2024. The adjusted EBIT for Tom Ford Fashion was negative 19.4 million euros, compared to negative 11.9 million euros in H1 2024.

In H1 2025, free cash flow was negative 23.1 million euros, compared to negative 6.6 million euros in H1 2024. The increased absorption in H1 2025 was mainly due to lower cash flow generation from operating activities. Net financial debt stood at 92.1 million euros as of June 30, 2025, substantially in line with December 31, 2024.

Commitment to traceability

The company has long invested heavily in its supply chain, its sustainability and traceability. In detail, the company’s journey towards traceability began in Oasi Zegna, the 100 square kilometre natural territory in the Italian Alps. With an area 30 times that of New York’s Central Park, Oasi Zegna embodies the values of the group’s founder. He cultivated his dream of a better future by working in harmony with nature, industries and local communities.

Following the founder’s example, the company has committed to making Oasi Cashmere and Oasi Linen fibres fully traceable and certified from 2024 onwards.

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