Ermenegildo Zegna Nets $47.9 Million in H1 Amid Thom Browne’s Decline

Ermenegildo Zegna, at two speeds. The Italian luxury group has closed the first half of the year with a drop in sales, but with a strong rebound in net profit. The conglomerate posted a turnover of 927.7 million euros in the first six months of the year, 3.4% less than in the same period of the previous financial year.

Net income amounted to 47.9 million euros, a year-on-year increase of 53%, while the company’s net margin stood at 5.2%, compared with 3.3% a year earlier. At the same time, operating profit (ebit) fell by 16% to 61.3 million euros and adjusted ebit reached 68.7 million euros.

This performance was marked by the good performance of the direct-to-consumer channel, which grew by 4.2% in the period and now accounts for 82% of the group’s brand sales. Meanwhile, the wholesale business slumped by 27.1% in the first half of the year.

“The first half reflects our strategic decision to invest in the store network and in the group’s three segments, while advancing projects that fuel our long-term growth ambitions,“ Ermenegildo Zegna, chairman and CEO of the group, said in a statement.

Ermenegildo Zegna achieved a turnover of 927.7 million euros in the first half of the year.

By brand, Zegna’s sales remained virtually stable at €660.3 million compared to €660.5 million in the first half of 2024. The eponymous brand raised its adjusted operating margin to 14.3%, up from 12.8% a year earlier.

Thom Browne, on the other hand, recorded a 22.4% drop in turnover, to 129.5 million euros, while the luxury brand Tom Ford Fashion, acquired from cosmetics giant Estée Lauder, posted a positive performance, with a turnover of 152.7 million euros, up 2.8%. The textile business, part of the Zegna segment, generated 67.1 million euros, down 6.6%.

By geographical area, the Americas was the only region in positive territory, up 6.8% to 262.7 million euros. Europe, the Middle East and Africa fell by 2.3% to 328.9 million euros, while Asia-Pacific (excluding China) rose by 1.4% to 111.5 million euros. China, on the other hand, plunged by 16.2% to EUR 223.1 million.

At June 30, the group’s net financial debt was 92.1 million euros, practically in line with the 2024 close. With these results, Zegna maintains its forecasts to achieve the objectives set for 2027, relying on the strength of the Zegna brand, the progress of the direct channel and the transformation process of its Thom Browne and Tom Ford Fashion brands.