Ermenegildo Zegna (NYSE:ZGN) today announced its financial results for the full year ended December 31, 2025, demonstrating resilience in a volatile global luxury market.
The Group reported a profit of €109.5 million, representing a 20% increase compared to €90.9 million in fiscal 2024.
While reported revenues dipped slightly by 1.5% to €1,916.9 million, the Group achieved a positive organic growth rate of 1.1%, driven by the continued strength of the Zegna brand's "Quiet Luxury" positioning and a stabilized performance at Thom Browne and TOM FORD FASHION.
A key highlight of the report was the significant expansion of the Group's gross profit margin, which rose 90 basis points to 67.5%.
This margin improvement reflects a successful shift toward direct-to-consumer (DTC) channels and a more favorable product mix centered on high-margin luxury leisurewear and made-to-measure services.
Adjusted EBIT for the year was €163 million; notably, this figure includes a prudent €10 million provision for expected losses on trade receivables stemming from the Saks Global Chapter 11 filing.
Excluding this one-time impact, adjusted EBIT would have reached €173 million.
Meanwhile, the Group’s balance sheet saw a dramatic strengthening over the 12-month period.
Zegna transitioned from a net financial indebtedness of €94 million at the end of 2024 to a cash surplus of €52 million as of December 31, 2025.
This pivot to a net cash position provides the Group with significant optionality for strategic investments in its supply chain and retail footprint heading into 2026.