Italian luxury fashion house Ermenegildo Zegna Group has delivered higher revenue and operating profitability for the first half of 2026 (H1 2026), supported by robust direct-to-consumer (DTC) momentum and margin expansion in its core Zegna segment, despite continued macroeconomic and foreign exchange headwinds.
For the six months ended 30 June 2026, the group’s revenues increased 6.4 per cent year on year to €987.3 million (~$1.15 billion, as per conversion rate of $1 = €0.8606 as on September 4, 2026), with organic growth of 9.3 per cent.
Adjusted earnings before interest and tax (EBIT) rose to €74.5 million (~$86.56 million) from €68.7 million (~$79.83 million) in H1 2025, with the adjusted EBIT margin improving by 10 basis points to 7.5 per cent. Profit for the period was €28.4 million (~$33.00 million), down from €47.9 million (~$55.66 million) a year earlier, reflecting higher financial expenses and an increased effective tax rate.
Gross profit reached €667.8 million (~$775.94 million), representing a gross margin of 67.6 per cent, according to Zegna Group’s latest financial release.
“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, the heart of our Group’s legacy.
“The disciplined execution of our strategy resulted in a 9 per cent organic growth in first-half revenues and an improvement of the Group’s Adjusted EBIT Margin despite adverse foreign exchange movements. I am notably pleased by the continued margin expansion at the Zegna segment and our improved net cash surplus, which reached €60 million (~$69.72 million).
“While the macroeconomic and geopolitical environment continues to be uncertain, we remain focused on delivering sustainable and profitable growth guided by our long-term vision,” said Ermenegildo Zegna, group executive chairman, Ermenegildo Zegna Group.
Segment and channel performance
The Zegna segment (including ZEGNA brand, Textile and Other) generated revenues of €724.3 million (~$841.59 million), up 9.7 per cent year on year, with adjusted EBIT rising to €106.9 million (~$124.21 million) and a margin of 14.8 per cent.
Thom Browne revenues declined 4.9 per cent to €123.1 million (~$143.03 million), with an adjusted EBIT loss of €8.3 million (~$9.64 million), while Tom Ford Fashion revenues increased 2.7 per cent to €156.8 million (~$182.19 million), narrowing its adjusted EBIT loss to €12.1 million (~$14.06 million). Textile revenues were broadly stable at €67 million (~$77.85 million).
DTC channel revenues outperformed, rising 12.1 per cent year on year (15.8 per cent organic) and accounting for 86 per cent of the group’s branded revenues. In contrast, wholesale revenues declined 14.6 per cent year on year as the group continued to streamline this channel across its three brands.
Margin analysis and cash flow
Gross profit margin improved slightly to 67.6 per cent, supported by the favourable channel mix as DTC revenues increased to 86 per cent of branded group revenues, up from 82 per cent in H1 2025.
Selling, general and administrative (SG&A) expenses were €531.1 million (~$617.11 million), representing 53.8 per cent of revenues, down from 54.1 per cent in H1 2025, driven by improved operating leverage and lower impairment costs.
Marketing expenses rose to €68.2 million (~$79.24 million), maintaining a stable ratio to revenues at 6.9 per cent.
Capital expenditure amounted to €64 million (~$74.36 million), reflecting investments in production activities, especially the new shoe production plant in Parma, Italy. Free cash flow turned positive at €19.2 million (~$22.31 million), compared to a negative €23.1 million (~$26.84 million) in H1 2025, mainly due to improved operating cash flow and working capital management.
The group ended the period with a net cash surplus of €59.6 million (~$69.25 million), up from €52.1 million (~$60.54 million) at year-end 2025.
Despite ongoing macroeconomic and geopolitical uncertainties, Zegna Group continues to prioritise margin expansion, operational efficiency, and disciplined investment in brand equity and production capabilities, as per the company’s semi-annual report.
