The earnings call presented a mixed picture. While there was strong performance in the Zegna segment and a significant increase in net profit, there were notable challenges with declining EBIT margins, particularly in the Thom Browne and Tom Ford Fashion segments. The increase in selling, general, and administrative costs also weighed on the overall performance.
Company Guidance
During the Ermenegildo Zegna Group H1 2025 Financial Results Call, the leadership team provided detailed guidance on various financial metrics. The company reported first-half revenues of EUR 928 million, with a 2% organic decline despite a 6% increase in direct-to-consumer (DTC) organic performance. Gross profit reached EUR 626 million with a margin of 67.5%, showing a 110 basis point improvement due to a better channel mix with DTC revenues comprising 82% of branded revenues. Selling, general, and administrative costs were EUR 502 million, with a revenue incidence increase to 54.1%, driven by negative operating leverage and investments in long-term growth, including store expansions and IT infrastructure. Marketing expenses accounted for 7% of revenues at EUR 63 million. Adjusted EBIT was EUR 69 million, with a margin of 7.4%, down 100 basis points from last year, impacted by higher costs and currency movements. The Zegna segment achieved an adjusted EBIT margin improvement to 14.3%, while Thom Browne faced a contraction in adjusted EBIT to EUR 4 million due to wholesale revenue declines. Tom Ford Fashion recorded an adjusted EBIT loss of EUR 19 million due to strategic investments. Net profit increased by 53% to EUR 48 million, aided by higher financial income and a lower tax rate of 30%. Capital expenditure totaled EUR 54 million, mainly for store network development and production investments. The company anticipates maintaining a CapEx-to-revenue ratio of 6-7% by year-end.
Zegna Segment Margin Improvement
The Zegna segment generated an adjusted EBIT of EUR 94 million with a margin of 14.3%, which compares to 12.8% in the first semester of 2024, marking a significant 150 bps increase.
Significant Net Profit Increase
Net profit for the first 6 months of 2025 reached EUR 47.9 million, up 53% compared to EUR 31 million last year, driven by higher financial income and foreign exchange gains.
Strong DTC Performance
The DTC (Direct-to-Consumer) channel generated 82% of group branded revenues, a 6 percentage point increase compared to the first 6 months of 2024, leading to a 110 basis points gross margin improvement.
Ermenegildo Zegna (ZGN) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ZGN Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Sep 05, 2025
$8.72
$9.02
+3.44%
Mar 27, 2025
$6.97
$7.64
+9.61%
Sep 18, 2024
$9.60
$8.68
-9.58%
Apr 05, 2024
$13.57
$11.64
-14.22%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Ermenegildo Zegna (ZGN) report earnings?
Ermenegildo Zegna (ZGN) is schdueled to report earning on Apr 02, 2026, After Close (Confirmed).
What is Ermenegildo Zegna (ZGN) earnings time?
Ermenegildo Zegna (ZGN) earnings time is at Apr 02, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.