Ermenegildo Zegna Earnings Call Transcripts
Fiscal Year 2025
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FY2025 saw revenues of €1,917M (+1.1% organic), 67.5% gross margin, and €109M net profit (+20%). DTC momentum is strong, with all brands performing well, but 2026 faces FX headwinds and Middle East uncertainty. Dividend of €0.12/share proposed.
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FY 2025 revenues grew 1% to EUR 1.917 billion, led by strong DTC growth in Americas and EMEA, while China remained volatile and wholesale declined. DTC now represents 82% of branded revenues, with price/mix as the main growth driver and margins expected to be flat in 2026 due to FX headwinds.
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Q3 2025 revenues rose 4% organically to €398M, driven by 9% DTC growth and strong US/EMEA performance, while China remained volatile. Wholesale declined as DTC reached 82% of group sales. Management expects similar trends in Q4 and considers full-year consensus for revenue, EBIT, and gross margin reasonable.
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H1 2025 saw revenues of €928M and a 67.5% gross margin, with DTC growth offsetting overall organic decline. Net profit rose 53% to €48M, but adjusted EBITDA margin fell to 7.4% due to higher SG&A and currency headwinds. Cautious outlook continues, especially for China.
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H1 2025 revenues declined 3% year-over-year to €928 million, but DTC sales grew 6% organically, with strong momentum in the Americas and EMEA. Wholesale continued to decline as the group accelerates its DTC focus, while Greater China remains challenging. Temasek's 10% investment strengthens long-term strategy.
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Q1 2025 revenues declined 1% year-over-year to €459 million, with strong DTC growth at ZEGNA and Tom Ford offset by wholesale weakness at Thom Browne and softness in Greater China. EBIT guidance for low single-digit growth is reaffirmed, with price increases planned to offset US tariffs.
Fiscal Year 2024
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Revenue grew 2% to €1.947 billion in FY 2024, with adjusted EBIT at €184 million and net profit of €91 million. DTC channels drove margin gains, while Greater China remained challenging. 2025 guidance is cautious, with low single-digit growth expected and continued focus on DTC expansion.
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Q4 2024 saw 3% revenue growth, led by strong DTC and U.S. performance, with Zegna, Tom Ford, and Thom Browne brands each contributing. Strategic investments and geographic rebalancing supported results, while China remained volatile and growth was driven by higher ASP and conversion.
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Q3 revenues declined 8% year-on-year, mainly due to weakness in Greater China and wholesale streamlining, while DTC channels and key markets like Americas and EMEA showed resilience. Management remains cautious for 2025 but continues to invest in brand strength and retail expansion.
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H1 2024 saw 6% revenue growth and a 220 bps gross margin improvement, but adjusted EBIT fell 33% due to higher costs and soft demand, especially in China. Management remains committed to long-term growth, with stable gross margins and continued investment planned.
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H1 2024 revenues rose 6% to €960 million, with improved organic trends and strong DTC growth. Zegna brand led with double-digit gains in key markets, while Greater China remained challenging. Cost controls and global retail expansion are set to support H2 performance.