MILAN — Closing 2025 with a 20 percent increase in net profit to 109.5 million euros and a cash surplus of 52 million euros, the Ermenegildo Zegna Group is sticking to its expansion plans and strategies despite the challenging environment for the sector, said executive chairman Gildo Zegna in an interview with WWD.
“While we remain vigilant to potential risks, our ambitions are unchanged — and so is our determination to deliver on them,” said Zegna.
He touted “good progress” on profitability and margins and said that, were it not for the Saks Global bankruptcy, operating profit would be aligned with consensus.
The net profit growth was supported by higher financial income, foreign exchange gains and a lower effective tax rate.
Gross profit totaled 1.3 billion euros, a margin of 67.5 percent, up 90 basis points from 66.6 percent in 2024.
Adjusted operating profit amounted to 163 million euros, including a 10 million euro provision for expected losses on trade receivables related to Saks Global’s Chapter 11 filing. This compares with 184 million euros in 2024.
Zegna underscored the importance of Saks for the group and his personal relationship with its chief executive officer Geoffroy van Raemdonck.
“We spoke recently, confirming the plans and the steps that were set, which is a good premise. We are wrapping up shipments of summer deliveries and we have decided to continue with our winter collections,” said Zegna. “We believe [Saks Global] will continue to be an important partner in our future, so we follow the developments with attention but so far there is less uncertainty and we think they will come out of it.”
Preliminary sales figures reported in February were confirmed, showing organic growth of 1.1 percent to 1.91 billion euros, driven by the direct-to-consumer channel at the Zegna brand. At current exchange rates, sales decreased 1.5 percent compared with 1.94 billion euros in 2024.
In 2025, revenues at the Zegna brand totaled 1.18 million euros, up 1.5 percent versus 2024. Organically, they rose 4.7 percent.
Thom Browne sales decreased 14.7 percent to 268.5 million euros in 2025. In organic terms, they were down 12.2 percent.
Tom Ford Fashion revenues amounted to 317.1 million euros, up 0.8 percent at current exchange, and 3.1 percent organically.
Tom Ford Fall 2026 Ready to Wear Collection at Paris Fashion Week.
Courtesy of Tom Ford
Zegna touted the positive evolution of DTC at the group level, saying this channel will be ramped up for Thom Browne and Tom Ford Fashion. “In these first few months of the first quarter we see a positive evolution of DTC compared with the last quarter, which already showed good signs. We believe this strategy is good, and this driving force has started to become a propeller.”
Assessing the Middle East
During the interview and a following call with analysts to comment on year-end group figures, the war in the Middle East was obviously a key topic, and one that was addressed at the beginning of the call also with chief financial officer Gianluca Tagliabue to express closeness to the group’s partners and employees in the area. Zegna, however, said the group was aiming to “maximize the small positive signals that can come from the macroeconomic context as a protection from the geopolitical negative signs.”
On his way to China next week, he said for example that “while flattish and while remaining cautious, there are some small positive and sequential improvements” at current trading from that region, and he singled out Hong Kong in particular, which is showing positive signs. Business during the Chinese New Year was “slightly ahead of expectations.”
In the Middle East, the group’s clientele “is quite resilient” given its top positioning. The region accounts for a mid- to high-single-digit share of the group’s sales, said Tagliabue, adding that “it’s difficult to assess the impact of the war on 2026, as it depends on its duration,” but that it remains a key market and targets for 2027 have not been changed.
Tom Ford and Zegna stores are slated to open in Abu Dhabi by the end of the year.
Strength of the Americas
The Americas remain “very resilient,” and where the group continues to see a positive trend, including in countries such as Mexico, Brazil and Canada. “We don’t expect a slowdown in the Americas in 2026 because we have invested there at the right moment, and we have a big competitive advantage,” said Zegna.
He expects further momentum in the U.S. from the Zegna spring 2027 fashion show, exceptionally to be held in Los Angeles on June 5, together with the opening of Villa Zegna, the brand’s invitation-only temporary private club. He underscored the continued interest in and importance of personalization in the Salotto Zegna, “our jewel in the crown,” trumpeting the experience in the New York store, the second in terms of importance after the store in the Dubai Mall.
Evolution of Thom Browne
Thom Browne for the first time will stage a runway show in Milan on June 22 and Zegna sees this as a way to grow the brand in Europe. The executive said CEO Sam Lobban, who joined in September last year from Nordstrom, “is doing a good job, he is the right person in the right place, he is a retail pro, and the challenge for Thom Browne is to grow at retail. We have streamlined the wholesale channel, which came with a cost, but it’s the right choice. We did it with Zegna, and if we can do the same with Thom Browne and Tom Ford, we will be a winner as a group.”
The debut of the Thom Browne sneaker collaboration with Asics, unveiled in February during Super Bowl weekend, the first-of-its-kind for the brand, has been a success, said Zegna, “better than expected. It proves that we were missing that kind of product, which shows that when there is a new trendy, well-positioned product, the client is interested in buying. It’s a good, promising sign and we have to accelerate this strategy, opening up to a new customer group. Sam has experience in merchandise and will know how to work with Thom on this.”
Thom Browne’s take on the Asics Gel-Cayano 14 sneakers.
Courtesy of Thom Browne, Asics
Zegna was also highly complimentary of Haider Ackermann’s designs for Tom Ford Fashion. “It’s a great satisfaction, we have the right product, now we have to raise its awareness, as the brand is more known for its beauty and eyewear, but we have the tools to do quite well,” he contended.
In 2025, capital expenditure amounted to 102.9 million euros compared with 125.5 million euros in 2024 and was 60 percent related to the group’s store network. Other investments were channeled in the new footwear production plant in Parma, Italy, and in IT initiatives.
By the end of the year, a Tom Ford flagship will open in Paris on Rue Saint Honoré, evolving the brand’s store concept, which will be “a very big statement,” said Zegna. Additional units will open in the U.S. at South Coast Plaza, San Diego and Bal Harbour, Fla. A second Zegna flagship will open on Rue Saint Honoré in early 2027.
As of Dec. 31, the group had a cash surplus of 52 million euros, compared with a net debt of 94 million euros at the end of December 2024. The change primarily reflects an improved free cash-flow generation and the inflow due to the sale of treasury shares to Temasek last July for 107.2 million euros.
