The Ermenegildo Zegna Group, which owns the Zegna and Thom Browne brands and holds the license for Tom Ford Fashion, reported full-year 2025 revenue of €1.92 billion, a slight decrease of 1.5% compared to the previous year.
Despite the dip in revenue, profitability strengthened significantly. Net profit rose by 20% year-on-year, and the gross profit margin increased by 90 basis points, supported by a more favorable sales channel mix. Direct-to-consumer (DTC) sales grew to represent 82% of total revenue, a 4-percentage-point increase. Adjusted EBIT, however, fell to €163 million from €184 million, partly due to a €10 million provision for expected losses on trade receivables related to Saks Global.
By brand, Zegna’s revenue for the year reached €1.18 billion, up 1.5%. Thom Browne’s revenue declined by 14.7% to €268.5 million, while Tom Ford Fashion revenue was essentially flat, with a 0.8% increase to €317.1 million.
“Looking ahead, recent developments in the Middle East have introduced additional uncertainty across the sector,” said Executive Chairman Ermenegildo Zegna. “In this more complex environment, our priorities remain clear: disciplined growth, strong cash generation, and rigorous execution to deliver on our targets. While we remain vigilant to potential risks, our ambitions are unchanged—and so is our determination to deliver on them, together.”
Frequently Asked Questions
Of course Here is a list of FAQs about Zegna Groups slight revenue decline in 2025 framed in a natural tone with clear direct answers
BeginnerLevel Questions
Q1 I heard Zegnas revenue went down in 2025 Is that true
A Yes The Zegna Group reported a slight decline in its total revenue for the 2025 fiscal year compared to the previous year
Q2 What exactly is revenue
A Revenue is the total amount of money a company earns from selling its products and services before any costs or expenses are subtracted Its often called the top line
Q3 How much did their revenue actually fall
A While the exact percentage would be in their official financial report the key point is it was a slight decline meaning it was a small dip not a major crash
Q4 Does a revenue decline mean Zegna is losing money
A Not necessarily Revenue is just sales A company can have lower sales but still be profitable if it manages its costs effectively The full picture comes from looking at profit not just revenue
Q5 Is this bad news for the brand
A Its a signal to pay attention to but not a catastrophe For a global luxury group singleyear fluctuations can happen due to many factors The key is the longterm trend and the reasons behind the change
Advanced InvestorFocused Questions
Q6 What were the main reasons for the revenue decline in 2025
A Based on common industry challenges likely reasons include a slowdown in luxury spending in key markets strategic reduction of wholesale accounts to focus on more profitable direct sales unfavorable currency exchange rates or a tough comparison to a very strong prior year
Q7 Did all parts of the business decline equally
A This is a critical question Often a groups performance is mixed One brand might have grown while the core Zegna brand declined or vice versa The geographic breakdown is also crucial
Q8 Was this decline expected by analysts and the market
A The markets reaction is