Ermenegildo Zegna (NYSE:ZGN) leaders highlighted steady full-year revenue growth in 2025, a fourth-quarter acceleration driven by direct-to-consumer (DTC) momentum, and ongoing efforts to shift brand distribution away from wholesale during the company’s FY 2025 preliminary revenues call. Management also addressed a changing leadership structure, trends across regions—especially Greater China—and potential exposure related to Saks Global’s Chapter 11 filing.
Leadership transition and brand priorities
Executive Chairman Gildo Zegna opened the call by describing a leadership transition announced in November, naming Gianluca Tagliabue as Group CEO and appointing Edoardo and Angelo Zegna as co-CEOs of the Zegna brand. Gildo Zegna characterized the move as a milestone to strengthen the group and prepare the next generation of family leadership.
2025 revenue results and fourth-quarter acceleration
Tagliabue reported 2025 revenues of EUR 1.917 billion, up 1% versus the prior year on an organic basis. Fourth-quarter revenue totaled EUR 591 million, up 4.6% organically.
By brand in Q4:
- Zegna brand: EUR 362 million, +7%, driven by DTC growth of +10%.
- Thom Browne: EUR 91 million, +1.4% organic, supported by DTC growth tied to new store openings.
- Tom Ford Fashion: EUR 98 million, +1% organic, with DTC growing faster than wholesale.
At the group level, DTC revenue grew 10% in Q4, an acceleration from +9% in Q3. Management said DTC represented 82% of the group’s branded revenues for 2025 (excluding textile and other B2B revenue).
Channel strategy: DTC focus and wholesale reductions
Management repeatedly underscored the group’s strategy to increase direct control of distribution and reduce wholesale exposure.
For the Zegna brand, Tagliabue said Q4 DTC revenues rose 10% and represented 88% of 2025 brand revenues. The company attributed results to “solid double-digit growth” in the Americas and in Europe, the Middle East, and Africa (EMEA), while Greater China DTC remained negative but improved versus Q3. Zegna’s wholesale revenues fell 17% in Q4 and represented 12% of brand revenue for the year, which management said reflected deliberate wholesale rationalization.
At Thom Browne, DTC rose 11% in Q4, supported by store openings including New York Madison Avenue, Los Angeles Melrose Avenue, Palm Beach, and Ginza in Tokyo. Wholesale declined 14% in Q4 and was down 40% for the full year, consistent with the brand’s push to become “retail-first.” Management said wholesale would likely remain negative in 2026 but at a “significantly lower degree” than the 40% decline recorded in 2025.
Tom Ford Fashion posted +5% DTC growth in Q4, which management described as a sequential deceleration due to a higher comparison base and a significant emphasis on Haider Ackermann’s first collection in Q3. Wholesale fell 4% in Q4, aligned with the group’s stated push for more direct control.
Regional performance: EMEA and the Americas offset Greater China softness
Management described strong performance in EMEA and the Americas and continued volatility in Greater China.
In Q4, EMEA—representing 36% of 2025 revenue—rose 7%, led by Zegna DTC, which offset the impact of wholesale rationalization. The Americas, accounting for 30% of full-year revenues, increased 16% in Q4 despite what management called a challenging comparison. Tagliabue said Zegna continued to deliver “sound double digits” in the U.S. and with the U.S. consumer cluster.
Greater China represented 23% of full-year revenues, which Tagliabue noted was roughly half the revenue mix at the time of the group’s 2021 listing. Greater China revenue declined 10% in Q4, which management attributed to Thom Browne and Tom Ford and to wholesale timing and delivery differences. Tagliabue said Zegna DTC improved sequentially in the quarter but remained negative, and he expects China to remain volatile through the year, adding that the group planned its 2026 budget accordingly. He later said he saw potential slight improvement in Hong Kong, but management preferred to remain prudent until after the Chinese New Year timing effects pass.
In Asia Pacific excluding Greater China, revenue grew 5% in Q4, driven by improvement at Zegna and Tom Ford Fashion, particularly in Japan and Korea.
Store network updates, new openings, and Saks Global exposure
The group ended 2025 with 282 directly operated stores for Zegna, 123 for Thom Browne, and 66 for Tom Ford, according to management.
Management outlined several store plans discussed during Q&A. For Tom Ford Fashion, leadership reiterated plans to expand distribution, including a new Paris store on Rue Saint-Honoré expected by the end of the year. Tagliabue also cited U.S. openings including Bal Harbour, San Diego, and Costa Mesa. For Zegna, management cited planned openings including San Diego and Scottsdale in the U.S.; store openings in Riyadh and Abu Dhabi; and a store in Shenzhen Bay, even as the company intends to shrink parts of its Greater China footprint. Tagliabue said Zegna may not renew roughly 10 stores over the medium term in Greater China.
Executives also addressed Saks Global’s Chapter 11 filing on January 13. Tagliabue said Saks is an important partner for luxury brands, that discussions regarding past-due receivables are ongoing, and that the outcome remains uncertain. He said the group has the financial and business strength to absorb the event given Saks Global’s limited revenue incidence. Management indicated that Saks, Neiman, and Bergdorf Goodman together represent a low single-digit share of group revenues, while noting that the key issue is potential bad-debt accruals rather than inventory exposure.
Looking ahead, management said the Zegna brand’s growth is being driven primarily by price/mix rather than volume, and Tagliabue said the company is taking mid-single-digit price increases in Spring and Fall 2026 to offset currency fluctuations. The group also said it had experienced a roughly 2.6% currency headwind in 2025 (the difference between reported and organic growth) and was budgeting for a similar FX impact, partially mitigated by hedging.
About Ermenegildo Zegna (NYSE:ZGN)
Ermenegildo Zegna is a global luxury fashion house specializing in men’s tailored clothing, casualwear, accessories, footwear and fragrances. With a focus on high-quality fabrics and craftsmanship, the company manages the entire value chain from wool sourcing and textile production to garment design, manufacturing and retail distribution.
Founded in 1910 by Ermenegildo Zegna in Trivero, Italy, the company began as a textile mill dedicated to producing fine wool fabrics. Over the decades it expanded into ready-to-wear clothing and built a reputation for sartorial excellence.
