Ermenegildo Zegna Group, owner of Zegna and Thom Browne and licensee of Tom Ford Fashion, said that revenues rose 1.1% year-on-year in fiscal 2025, on an organic basis, to €1.92 billion. Fourth-quarter revenues were up 4.6% year-on-year to $591 million, driven by strong growth in the Americas and continued strength in EMEA.
“2025 is an important year for our business performance, particularly for the brand,” Ermenegildo ‘Gildo’ Zegna said on Monday. The earnings call was his first since becoming executive chair in November and Gianluca Tagliabue’s first as CEO, under the group’s new leadership structure. Gildo’s sons, Edoardo and Angelo Zegna, are now co-CEOs of the Zegna brand.
“These results were driven by the strategic [direct-to-consumer] DTC channel in Q4,” GIildo said. “Both the group DTC and Zegna DTC delivered a sound 10% organic growth. In particular, these results have been led by [the] Americas, and also China slightly improving, although remaining volatile.”
Full-year revenues for the Zegna brand rose 4.7% year-on-year to €1.2 billion, Thom Browne fell 12.2% to €268.5 million, and Tom Ford Fashion was up 3.1% to €317.1 million. For the fourth quarter, Zegna revenues were up 7.4% year-on-year to €361.7 million, Thom Browne was up 1.4% to €91.1 million, and Tom Ford Fashion was up 1.5% to €98.3 million.
By region, the Americas proved a bright spot, up 12% year-on-year for fiscal 2025 to €566.1 million. Tagliabue attributed this growth to strong DTC momentum for the Zegna brand, as well as Thom Browne in Q4. “Indeed, the [Zegna] brand continues to grow some double digits in the US, as well as with the US consumer clusters,” he said, adding that the company remains “bullish” on America. EMEA (Europe, the Middle East and Africa) revenues were up 1.4% year-on-year to €683.8 million. Greater China revenues fell 11.9% to €435.2 million, while the remainder of Asia-Pacific rose 3.8% to €228.8 million. Both Zegna and Tom Ford Fashion saw improvements, especially in Japan and Korea, the CEO added.
On the Saks Global bankruptcy and its impact on US revenues, Tagliabue said that the department store chain is important for many brands, including Zegna Group. “We are closely monitoring the situation as Saks works to stabilize its operations, and to negotiate terms with respect to past due receivables with all vendors, including ourselves,” he said. “At this stage, these discussions remain ongoing and their outcome is still uncertain. Our group has the financial and business strength to absorb this extraordinary event, considering the limited incidence of Saks Global on Zegna Group revenues.”
Across brands, DTC exposure is far greater than wholesale, with part of the group’s strategy this year to target clients at the “slightly lower threshold”, Tagliabue said, before elevating them. Still, high-spenders will continue to drive sales. “At Zegna, we have set up a goal to go after the big spender, and I think that all the broader development is in that direction, including the personalization projects, with which we are second to none,” Gildo said. “Our goal is to continue going in that direction, both with Zegna and Tom Ford, and we are preparing ourselves to do the same with Thom Browne.”
Gildo referenced brand milestones including Zegna’s Dubai fashion show, an Art Basel partnership and Villa Zegna in Miami, as well as its latest Milan show. When discussing the Villa Zegna concept — a key personalization project and a hit with Zegna’s high-spenders — Gildo hinted at a new store opening, and a Villa Zegna outpost “maybe [in] a market where we don’t have stores, because it gives us the possibility to reach our customers without knowing of the store”.
“Looking to the year ahead, we must face a new normal,” he continued. “In this context, agility, coherence, vision, speed, together with talent, will make a difference. We know the road may not always be linear, but we must face it with determination, prudence, and with the same courage that has always distinguished my family and our group.”
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