Ermenegildo Zegna (NYSE:ZGN) reported preliminary fiscal year 2025 revenues of €1.92 billion on Monday, as the Italian luxury group successfully leveraged its direct-to-consumer (DTC) strategy to offset a challenging wholesale environment and persistent volatility in China.
While reported revenue dipped 1.5% compared to 2024, the group achieved 1.1% organic growth for the full year, underpinned by a notable 4.6% organic surge in the fourth quarter.
The final quarter of 2025 signaled a significant turning point, with organic revenue in the strategic DTC channel jumping 10% across all three brands: ZEGNA, Thom Browne, and TOM FORD FASHION.
The flagship ZEGNA brand led the charge, delivering full-year revenues of €1.18 billion (+4.7% organic) and accelerating in Q4 with 7.4% organic growth.
This momentum was particularly robust in the Americas and EMEA regions, which helped counterbalance double-digit declines in the Greater China Region.
The results coincide with a landmark leadership transition for the family-led company.
Effective January 1, 2026, Gianluca Tagliabue assumed the role of Group CEO, while Ermenegildo "Gildo" Zegna transitioned to Executive Chairman.
The ZEGNA brand is now led by the family’s fourth generation, with Edoardo and Angelo Zegna serving as Co-CEOs.
"The last quarter of the year delivered organic revenue growth of 10% in our strategic DTC channel at Group level," said Executive Chairman Gildo Zegna.
"This performance confirms the strength of our vision and the relevance of our strategy as we empower the next generation of leaders.