Ermenegildo Zegna (ZGN) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 revenues were €398 million, up 4% organically, with DTC channel accelerating 9% and strong results in the Americas and EMEA, while Greater China showed sequential improvement despite a year-over-year decline.

• Nine-month 2025 revenues totaled €1,326 million, down 2% year-over-year and flat organically, with DTC accounting for 82% of group revenues.

• ZEGNA and TOM FORD FASHION brands posted solid organic gains in Q3, while Thom Browne improved sequentially despite a decline.

• Wholesale revenues declined sharply due to a strategic focus on DTC and tighter distribution control.

• Management remains confident in mid-term targets despite ongoing industry challenges and currency fluctuations.

Financial highlights

• ZEGNA Q3 revenues were €249 million, up 6% organically, led by DTC in EMEA and Americas; TOM FORD FASHION Q3 revenues were €66 million, up 4% organically, with DTC up 16%; Thom Browne Q3 revenues were €48 million, DTC up 10% but wholesale down sharply.

• DTC channel Q3 revenues were €297 million, up 9% organically; wholesale branded revenues down 15% organic.

• Textile segment was flat, while other revenues (mainly third-party agreements) grew 12% organically.

• DTC revenues for the Group rose 4.5% year-over-year and 9.1% organic in Q3.

• Wholesale branded revenues fell 24% year-over-year and 23.4% organic in 9M 2025.

Outlook and guidance

• Management expects a challenging environment ahead due to consumer demand uncertainties and currency volatility but remains confident in delivering on mid-term targets.

• Q4 trends expected to be similar to Q3, with continued FX headwinds and challenging comparisons due to a strong Q4 last year.

• Consensus for full-year revenues and EBIT is considered reasonable by management.