Italy’s Ermenegildo Zegna FY25 revenue down 1.5% as DTC gains traction

Italian luxury fashion house Ermenegildo Zegna NV has reported preliminary and unaudited revenues of €1.92 billion (~$2.26 billion) for fiscal 2025 (FY25) ended December 31, marking a 1.5 per cent year-on-year (YoY) decline, while delivering 1.1 per cent organic growth. The performance reflects the group’s ongoing strategic shift towards direct-to-consumer (DTC) channels amid a volatile global luxury environment and continued rationalisation of wholesale distribution.

DTC revenues rose to €1,449 million, up 4.2 per cent YoY and 7.9 per cent organically, accounting for 82 per cent of branded product sales, compared with 78 per cent a year earlier. In contrast, wholesale branded revenues declined 20.9 per cent YoY and 20.2 per cent organically to €318.1 million, reflecting deliberate de-risking of the channel across brands, Ermenegildo Zegna group said in a press release.

Ermenegildo Zegna has posted FY25 revenues of €1.92 billion (~$2.26 billion), down 1.5 per cent YoY but up 1.1 per cent organically, driven by strong DTC growth, which now accounts for 82 per cent of branded sales.
The Americas led regional performance, while China remained weak.
Q4 showed sequential acceleration, with DTC momentum across all brands supporting resilience amid wholesale rationalisation.

By brand, Zegna delivered steady growth, with FY25 revenues of €1,181.6 million (~$1.39 billion), up 1.5 per cent YoY and 4.7 per cent organically, supported by resilient DTC demand. Thom Browne reported €268.5 million in revenues, down 14.7 per cent YoY and 12.2 per cent organically, largely due to wholesale streamlining, while Tom Ford Fashion posted €317.1 million, up 0.8 per cent YoY and 3.1 per cent organically, reflecting gradual stabilisation under tighter distribution control.

Geographically, the Americas emerged as the strongest region, with FY25 revenues of €566.1 million, up 7.9 per cent YoY and 12 per cent organically, driven by strong momentum at Zegna and Thom Browne. Europe, the Middle East and Africa (EMEA) revenues reached €683.8 million, up 0.5 per cent YoY and 1.4 per cent organically, supported by both local demand and tourist spending. China remained under pressure, with revenues falling 14.6 per cent YoY and 11.9 per cent organically to €435.2 million, while Rest of Asia-Pacific (APAC) region posted broadly stable revenues with 3.8 per cent organic growth.

Meanwhile, in the fourth quarter (Q4) of FY25, the group has reported revenues of €591 million, up 0.3 per cent YoY and 4.6 per cent organically, confirming a sequential acceleration versus Q3, driven primarily by DTC.

DTC revenues in Q4 grew 3.9 per cent YoY and 9.6 per cent organically, with positive contributions from all three brands. Zegna Q4 revenues rose 2.4 per cent YoY and 7.4 per cent organically to €361.7 million, supported by double-digit organic growth in DTC, driven by EMEA, particularly the Middle East, and the United States. Thom Browne has reported €91.1 million in Q4 revenues, down 3.7 per cent YoY but up 1.4 per cent organically, as strong DTC growth offset continued wholesale contraction. Tom Ford Fashion recorded €98.3 million, down 2.3 per cent YoY but up 1.5 per cent organically, with positive DTC momentum in EMEA and Rest of APAC.

Wholesale branded revenues in Q4 declined 12.9 per cent YoY and 11.6 per cent organically, reflecting the Group’s continued focus on reducing exposure to the channel. Regionally, the Americas outperformed, delivering 9.3 per cent YoY and 15.6 per cent organic growth, while EMEA posted 4.7 per cent YoY growth and 6.5 per cent organic growth. China remained weak, with revenues down 13.8 per cent YoY and 9.9 per cent organically, impacted by softer DTC performance and wholesale timing effects. 

“The last quarter of the year delivered organic revenue growth of 10 per cent in our strategic DTC channel at group level, with a sequential improvement and the positive contribution of each of our three brands. Zegna, in particular, accelerated further during the quarter boosted by a double-digit organic growth in the DTC channel. This performance confirms the strength of our vision and the relevance of our strategy. 2025 was also a milestone year for our group and for our family. I have decided to take a step forward as we empower the next generation of leaders. Gianluca Tagliabue has taken the role of group’s CEO, and I passed the torch to the fourth generation, with Edoardo and Angelo Zegna now leading the Zegna brand,” said Ermenegildo ‘Gildo’ Zegna, executive chairman of the group.

At the end of December 2025, the group operated 471 directly operated stores, broadly stable quarter-on-quarter, underscoring its disciplined approach to network expansion.

Looking ahead, management said the group remains focused on executing its DTC-led strategy, strengthening brand desirability and navigating macroeconomic uncertainty with caution and long-term perspective.

Fibre2Fashion News Desk (SG)