Ermenegildo Zegna (ZGN) Corporate presentation summary

Strategic evolution and brand portfolio

• Operates three complementary brands: ZEGNA, Thom Browne, and Tom Ford Fashion, supported by a vertically integrated supply chain (Filiera).

• ZEGNA has transitioned to a single-brand strategy, focusing on Uber Luxury positioning and lifestyle experiences for modern men.

• Thom Browne and Tom Ford Fashion have been integrated through acquisitions, with each brand targeting distinct consumer segments and emphasizing direct-to-consumer (DTC) growth.

• Filiera ensures quality and innovation by controlling production from yarn to finished products, leveraging Italian textile expertise.

Financial performance and targets

• FY 2025 consolidated revenues reached €1,917m, down 1.5% YoY but up 1.1% organically; gross profit margin improved to 67.5%.

• Adjusted EBIT was €163m (8.5% margin), impacted by €10m provisions for expected losses on trade receivables from Saks Global.

• Net profit rose to €109m (5.7% margin), with a proposed dividend of €0.12 per share (~€32m total).

• Cash surplus at year-end was €52m, driven by strong free cash flow and treasury share sales.

• 2027 targets: revenues of €2.2–2.4bn and adjusted EBIT of €250–300m.

Brand and channel performance

• ZEGNA brand accounted for 62% of group revenues, with DTC channel representing 88% of its sales and growing 10% organically in Q4 2025.

• Thom Browne's DTC channel grew 11% organically, now 71% of its revenues, while wholesale was deliberately reduced.

• Tom Ford Fashion's DTC channel grew 5% organically, now 67% of its revenues, with a focus on retail excellence and US/EMEA markets.

• Group-wide, DTC accounted for 82% of branded product revenues in FY 2025, up from 78% in FY 2024.