The Tamesis
Ermenegildo Zegna Group, owner of Zegna and Thom Browne and licensee of Tom Ford Fashion, said organic revenue in fiscal 2025 increased 1.1% year-on-year to 1.92 billion euros. Fourth-quarter revenue increased 4.6% year over year to $591 million, driven by strong growth in the Americas and continued strength in the Europe, Middle East and Africa region.
“2025 is an important year for the performance of our business and especially for our brands,” Ermenegildo ‘Gildo’ Zegna said on Monday. The earnings call was his first since becoming executive chairman in November and Gianluca Tagliabue’s first as CEO under the group’s new leadership structure. Gildo’s sons Edoardo and Angelo Zegna now serve as co-CEOs of the Zegna brand.
“These results are driven by strategy [direct-to-consumer] DTC channel in the fourth quarter,” GIildo said. “Both Group DTC and Ermenegildo Zegna DTC achieved organic growth of 10%. In particular, these results are driven by [the] The Americas and China improved slightly but remain volatile. “
Zegna brand’s full-year revenue increased by 4.7% year-on-year to 1.2 billion euros, Thom Browne fell by 12.2% to 268.5 million euros, and Tom Ford Fashion increased by 3.1% to 317.1 million euros. In the fourth quarter, Zegna’s revenue increased by 7.4% year-on-year to 361.7 million euros, Thom Browne’s revenue increased by 1.4% to 91.1 million euros, and Tom Ford Fashion’s revenue increased by 1.5% to 98.3 million euros.
By region, the Americas was a bright spot, growing 12% year-on-year in fiscal 2025 to €566.1 million. Tagliabue attributed the growth to the Zegna brand and Thom Browne’s strong DTC momentum in the fourth quarter. “really, [Zegna] Sales of the Ermenegildo Zegna brand continue to grow at double digits in the United States and among American consumers. He added that the company remains “bullish” on the U.S. market. EMEA (Europe, Middle East and Africa) revenue increased 1.4% year-on-year to 683.8 million euros. Greater China revenue fell 11.9% to 435.2 million euros, while the rest of Asia Pacific increased 3.8% to 228.8 million euros. Tom Ford Fashion also made progress, especially in Japan and South Korea, the CEO added.
Speaking about the Saks Global bankruptcy and its impact on U.S. revenue, Tagliabue said the department store chain was important to many brands, including Ermenegildo Zegna. “We are monitoring developments closely and Saks is committed to stabilizing its operations and negotiating terms with all suppliers, including us, on overdue receivables,” he said. “At this stage, these discussions are ongoing and the outcome remains uncertain. Given the limited impact of Saks Global on Zegna Group’s revenue, our group has sufficient financial and business strength to cope with this extraordinary event.”
Across brands, Tagliabue said DTC exposure is far greater than wholesale, and part of the group’s strategy this year is to target customers with a “slightly lower threshold” before raising the bar. Still, high-spending groups will continue to drive sales. “At Ermenegildo Zegna, we have set our sights on chasing big-spending consumers, and I think all broader developments are in that direction, including our premier personalization program,” Gildo said. “Our goal is to continue to move in this direction with Zegna and Tom Ford, and we are ready to do the same with Thom Browne.”
Gildo cited the brand’s milestones, including Zegna’s Dubai show, Art Basel partnership, Villa Zegna in Miami and the latest Milan show. Discussing the Villa Zegna concept – an important personalization project popular with Zegna’s high-spending crowd – Gildo hinted at the opening of a new store and a branch in Villa Zegna, “Maybe [in] We don’t have a marketplace for stores because it makes it possible for us to reach customers without knowing the store”.
“As we look to the year ahead, we must face a new normal,” he continued. “This is a situation where agility, consistency, vision, speed, and talent will play a big role. We know the path may not always be linear, but we must face it with determination, caution, and the courage to always make my family and our team stand out.”
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