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Ermenegildo Zegna Group, the owner of Zegna and Thom Browne and licensee of Tom Ford Fashion, said that second-quarter revenues were down 6 per cent year-on-year to €468.9 million. Revenues for the first half of fiscal 2025 fared slightly better, helped by the first quarter’s direct-to-consumer (DTC) boost, falling 3 per cent year-on-year to €927.7 million. Shares fell 3.4 per cent following the results.
“The strong organic DTC channel performance in Q2 2025 for the group demonstrates that our strategic initiatives and actions are yielding results, even though the sector navigates a continuously challenging environment,” CEO Ermenegildo ‘Gildo’ Zegna said in a statement. “The recent months were also marked by several pivotal milestones for the group and our brands, starting with our first Zegna fashion show outside of Milan in June, along with Villa Zegna Dubai.”
By brand, Zegna revenues were down 2 per cent year-on-year for the quarter to €277.5 million; Thom Browne was down 25.9 per cent to €65.1 million; and Tom Ford Fashion revenues were up 2.1 per cent to €85.2 million.
The call follows Tuesday’s announcement that Zegna Group has agreed to sign over 14.1 million shares at $8.95 per share to Singaporean investment firm Temasek. Zegna will receive $126.4 million in cash once the purchase is complete. The deal will close on 30 July. On Wednesday’s call, CFO Gianluca Tagliabue assured investors that there is no intention to sell the company. “There is no intention to go private. I just want to make that clear,” he said. “There is no intention for the family to sell, and I just want to stress that the family has not sold a share.” (It was treasury shares that were sold.)
On the call, the group also announced Thom Browne’s new CEO. Current CEO Rodrigo Bazan will step down from the role on 31 August. Sam Lobban, currently executive VP and general merchandising manager for apparel and designer at Nordstrom, will assume the position on 2 September. “I welcome Sam Lobban as the brand’s new CEO,” Zegna said in his statement. “With his extensive background in merchandising and customer-first mindset, Sam is exceptionally well suited to lead this brand in capturing its unexpressed potential.”
By region, the Americas outperformed in Q2, up 4.5 per cent year-on-year to €137.7 million, driven by a strong performance by Zegna and Thom Browne in the DTC channels. EMEA (Europe, the Middle East and Africa) revenues were down 2.9 per cent to €174.8 million, impacted by a negative wholesale performance. Greater China revenues fell 21.3 per cent to €99.8 million, while revenues for the rest of Asia-Pacic fell 3.3 per cent to €55.7 million.
Moving forward, the company is expecting a relatively consistent performance throughout the rest of the fiscal year. “Currently, I don’t think that we’re going to find a different path in terms of trends in the second half [of the year], as in the first half,” Tagliabue said. “The countries that do well like the Gulf and the Americas, and I would say also Europe, will continue their path and Asia will keep being volatile. The fact that Temasek has become a major investor, I think they can truly support us in developing in that part [of the world], but I don’t see different trends as compared to the first half of the year.”
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