Ermenegildo Zegna Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 revenues rose 7% to €470 million, driven by 14% DTC growth and strong Americas and China performance. Zegna, Thom Browne, and TOM FORD FASHION all saw DTC gains, while wholesale declined as part of a strategic shift. Margins are expected to remain stable amid ongoing investments and FX headwinds.
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 saw 4% organic revenue growth to €398M, led by a 9% rise in DTC sales and strong performance in the Americas and EMEA. Wholesale continued to decline as the group focused on DTC, while FX and China volatility remained key risks. Consensus for full-year revenue, EBIT, and gross margin is seen as 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 in the Americas and EMEA offset by softness in Greater China and wholesale. 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.