Ermenegildo Zegna (ZGN) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 revenues reached €470.2 million, up 2.5% year-over-year and 7.4% organically, driven by strong Direct-to-Consumer (DTC) performance and the ZEGNA brand.

• DTC channel grew 14% organically, now representing 85% of branded revenues, with all brands and geographies contributing.

• All regions posted positive growth, led by Americas (+17% organic), Greater China (+5% organic), and rest of APAC (+8%).

• Strategic focus on retail-first and adapting to evolving market conditions supported momentum.

• Sustainability achievements in 2025 included 42% traceable raw material sourcing and gender equality certification.

Financial highlights

• ZEGNA brand revenues were €310.3 million, up 5.9% YoY (11.3% organic), with DTC up 14% and wholesale down 5%.

• Thom Browne revenues were €58 million, down 9.4% YoY (3% organic), with DTC up 20% and wholesale down 59%.

• TOM FORD FASHION revenues reached €68 million, up 0.4% YoY (5.4% organic), with DTC up 9% and wholesale down 3%.

• Textile segment grew 3–4.3%, reflecting soft luxury demand.

• DTC revenues totaled €372 million (+14% organic), now representing 85% of branded product sales.

Outlook and guidance

• Management remains cautious on Greater China, expecting a flat environment due to volatility.

• 2027 guidance reaffirmed at the lower end of the previously stated range, citing currency headwinds and Middle East uncertainty.

• Adjusted EBIT consensus for 2026 is €185–190 million, with margins expected to move sideways year-over-year.

• Management emphasizes agility and flexibility in response to ongoing risks and uncertainties.