Zegna Group Reports 53% Profit Surge Amid Luxury Sector Headwinds

The Ermenegildo Zegna Group reported a robust 53% increase in net profit for the first half of 2025, reaching €47.9 million despite a 2% organic decline in revenues to €928 million. This strong performance contrasts with declines seen by luxury competitors like LVMH and Kering, underscoring Zegna's successful direct-to-consumer (DTC) strategy, which now accounts for 82% of branded sales and grew organically by 6%. The company achieved a gross margin of 67.5% and improved its adjusted EBIT margin in the core Zegna segment to 14.3%, supported by operational efficiencies and disciplined cost control, even as other segments like Thom Browne and Tom Ford Fashion faced profit challenges. CEO Gildo Zegna highlighted the strength of the group's supply chain, brand authenticity, and strategic vision, affirming confidence in meeting the 2027 targets despite ongoing sector and currency headwinds. Continued investments in IT, talent, and store openings are part of the group's approach to sustaining growth and elevating the customer experience through its DTC channel. Overall, Zegna's strategic focus on direct sales and operational discipline positions it as a resilient leader in a volatile luxury market.