Ermenegildo Zegna Group reports slight revenue increase in third quarter

Italian fashion group Ermenegildo Zegna NV slightly increased its revenue in the third quarter of the 2025 financial year. This marks a return to growth after a decline in the first half of the year. The update comes from preliminary figures the company published on Thursday.

Group revenue for the period from July to September amounted to 398.2 million euros. This represents a 0.2 percent increase compared to the same quarter last year. On an organic basis, which adjusts for currency effects and changes in the group's portfolio and licensing business, revenue grew by 3.6 percent.

Strategic focus on direct retail pays off

In its direct retail channel, revenue increased by 4.5 percent (organically +9.1 percent) to 296.7 million euros. This narrowly offset a 15.5 percent decline (organically -14.7 percent) to 67.0 million euros in the wholesale business.

The company attributed the significant decline in this channel to a stronger strategic focus on its direct retail operations and targeted reductions in its wholesale distribution.

The Zegna division posted a revenue increase of 2.5 percent (organically +5.5 percent) to 290.9 million euros, while the Tom Ford Fashion segment grew by 0.9 percent (organically +4.3 percent) to 66.0 million euros. Revenue for the Thom Browne brand, however, fell by 9.9 percent (organically -4.8 percent) to 48.2 million euros.

Group achieves growth in Europe and America

Revenue growth in the third quarter was hampered by weak demand in Greater China, where revenue contracted by 10.8 percent (organically -6.5 percent) to 77.4 million euros. In the rest of the Asia-Pacific region, revenue decreased by 2.5 percent to 47.6 million euros (organically +3.0 percent).

Conversely, performance was positive in the EMEA region, which covers Europe, the Middle East and Africa. Quarterly revenue in this region reached 151.1 million euros, an increase of 1.4 percent (organically +2.6 percent) compared to the previous year. The Americas also saw positive development, with revenue rising by 8.2 percent (organically +12.9 percent) to 121.3 million euros.

Group CEO Ermenegildo Zegna sees company on track despite challenging environment

In the first nine months of the current year, group revenue totalled almost 1.33 billion euros. This figure is 2.3 percent (organically -0.4 percent) below the level of the same period last year.

In light of recent progress, CEO and chairman Ermenegildo Zegna expressed cautious optimism: “Looking ahead, we expect the environment for our industry to remain challenging due to ongoing uncertainties regarding demand and currency fluctuations,” he explained. “The success of the recent Tom Ford and Thom Browne fashion shows, the positive response to our Zegna autumn/winter collection, and our many upcoming projects make me confident we will continue to achieve our medium-term goals.”

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