Ermenegildo Zegna’s H1 Operating Profit Boosted by Zegna Brand’s Margins

Ermenegildo Zegna’s H1 Operating Profit Boosted by Zegna Brand’s Margins

Sofia Celeste

Thu, September 3, 2026 at 12:27 PM GMT+3 4 min read

• ZGN -1.23%

Updated Thursday at 10:09 EST

MILAN — Ermenegildo Zegna Group remains focused on delivering sustainable and profitable growth both online and in its stores.

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In the first half of 2026, the firm reported operating profit of 68.5 million euros, up from 61.3 million euros in the same six-month period of 2025. On Thursday, the company said that figure was largely impacted by the performance of the Zegna brand and increased revenues per square meter in its stores. Zegna's earnings before interest and taxes, or EBIT, rose to 106.9 million euros from 94.4 million euros a year earlier.

"Our first-half 2026 results reflect the effectiveness of our group's strategy, anchored in the strength of each of our brands' identities and their direct connection to clients, as well as the continued innovation coming from our Filiera [Italian for value chain], the heart of our group's legacy," group executive chairman Ermenegildo "Gildo" Zegna said in a statement.

The firm's net profit, however, plummeted to 28.4 million euros versus 47.9 million euros reported in the first half of 2025. In the first half of last year, the firm benefited significantly from a one-time financial gain from a remeasuring of Thom Browne-related liabilities. The Ermenegildo Zegna Group first acquired an 85 percent majority stake in Thom Browne in August 2018, and later increased its stake to 92 percent.

The firm was also impacted negatively by financial expenses, and lower foreign exchange gains compared with the same period last year. The effective tax rate also increased to 38.8 percent from 29.6 percent in the first half of 2025.

In the statement issued Thursday, the firm confirmed first-half sales figures reported in July. During the period sales rose 6.4 percent to 987.3 million euros, compared with 927.7 million euros in the same period last year. On an organic basis, they rose 9.3 percent.

In the three months ended June 30, sales rose 10.3 percent compared with the same period last year, reflecting a sequential acceleration across all brands, with Zegna leading the performance.

Sales of the Zegna brand gained 16.9 percent to 324.3 million euros, driven by its direct-to-consumer channel across all regions.

Thom Browne revenues were flat at 64.9 million euros, offset by the ongoing rationalization of the wholesale channel, but grew 2.7 percent organically.

Looking Ahead

During a conference call with analysts, management said it expected revenues if 2.2 billion euros, which would be in the lower range of the 2027 guidance it issued in March.

That compares to the 1.94 billion euros in revenues in 2024. Earnings before interest and taxes, or EBIT, are expected to reach 250 million to 300 million euros by 2027.

Analysts at Bernstein said that Zegna Group continues to deliver on their transformation plan. Brands like Zegna surprised on the upside with 14.8 percent adjusted EBIT margin, compared to 13.5 percent forecast by consensus and Tom Ford came in 100 basis points above expectations. Thom Browne, however, missed expectations considerably with an EBIT margin of negative 6.8 percent versus consensus of a positive 2.4 percent EBIT margin.

The China Network

On a group level, all regions delivered solid growth, led by the Americas, with the Greater China region further strengthening in the quarter.

The Greater China area reported revenues of 112 million euros, up 12.2 percent, accelerating compared with the first quarter. In the first half, the region accounted for 24 percent of the total.

Ermenegildo Zegna Group chief executive officer Gianluca Tagliabue said the Zegna brand's China performance was positive though the firm remains cautious. He added that the firm is selectively downsizing in the region to turn the focus on key retail locations like the Zegna stores in Shenzhen and Harbour City in Hong Kong.

"We are reducing the size of presence in China, but we are reinvesting in fewer, better doors."

Overall, sales momentum of the Zegna brand continued through July and August with double-digit growth in its direct to consumer business across the region.

"We continue to see a substantial solid double-digit positive trend for Zegna DTC with good performance across all regions and across all nationalities," Tagliabue said.

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