Business
Zegna Group Reports $1.4 Billion Profit, Updates 2027 Growth Targets
Ermenegildo Zegna NV, the renowned Italian luxury fashion group, has reported revenues of €1.95 billion, with an improved margin of 66.6 per cent, largely driven by the strength of its direct-to-consumer (DTC) sales, which accounted for 78 per cent of branded product revenues.

Zegna led the group’s performance with revenues of €1,163.7 million, reflecting a 4.9 per cent YoY increase and a 5.5 per cent organic growth. Tom Ford Fashion followed with €314.5 million in revenue, experiencing a significant 33.5 per cent YoY growth. In contrast, Thom Browne reported a decline, with revenues falling 16.8 per cent YoY to €314.7 million.
The group’s textile revenues dropped by 8.5 per cent to €138.2 million, while other revenue streams saw a steeper decline of 48.4 per cent to €15.5 million. Selling, general, and administrative (SG&A) expenses increased to €1,008.3 million, accounting for 51.8 per cent of total revenues, while marketing expenses reached €121.4 million. Corporate costs decreased to €20.0 million, down from €30.4 million in FY23, primarily due to lower short-term and long-term remuneration costs.
Despite these cost adjustments, Zegna Group posted an operating profit of €166.9 million. However, net profit declined to €90.9 million (~$98.2 million), with a 4.7 per cent margin. This was impacted by a higher effective tax rate of 30 per cent and foreign exchange losses of €6.1 million due to the appreciation of the US dollar. Adjusted EBIT stood at €184.0 million, with an adjusted EBIT margin of 9.5 per cent.
Zegna Group remains focused on strengthening its organization and making strategic investments in its brands. CEO Ermenegildo “Gildo” Zegna highlighted the company’s commitment to innovation through its R&D division, Filiera, which continues to drive competitive differentiation for Zegna, Thom Browne, and Tom Ford Fashion.
“Zegna led this performance, leveraging its distinctive competitive edge and the management’s dedication to results. Tom Ford Fashion is steadily realizing its full potential, reinforced by the success of its latest fashion show under Haider Ackermann,” Zegna stated. “Meanwhile, Thom Browne’s strategy prioritizes a streamlined wholesale approach and an enhanced client-centric DTC model.”
Given the evolving market conditions, the group has revised its medium-term targets. By 2027, it aims to achieve revenues between €2.2 billion, with adjusted EBIT projected in the range of €250 million to €300 million.
“As we look ahead to 2025 and beyond, we will maintain a disciplined approach while staying committed to our strategic projects,” Zegna added. “Protecting our brand identity remains our top priority. We will execute our vision with agility and precision, ensuring long-term value creation for all stakeholders.”