Ermenegildo Zegna N.V. announced a profit of €47.9 million for the first half of 2025, a 53% increase compared to €31.3 million in H1 2024. Adjusted EBIT for H1 2025 was €68.7 million, down from €80.9 million in H1 2024, with a margin of 7.4%.
Revenues for H1 2025 were €927.7 million, a 3.4% year-over-year decrease and a 2.0% organic decline. Despite the revenue contraction, the gross profit margin improved by 110 basis points to 67.5%, driven by the increasing proportion of Direct-to-Consumer (DTC) revenues, which now represent 82% of branded revenues.
Selling, general, and administrative (SG&A) costs rose to 54.1% of revenues in H1 2025, up from 51.8% in H1 2024, reflecting strategic investments in talent, IT infrastructure, and CRM platforms for Tom Ford Fashion, as well as costs associated with new store openings. The Zegna segment's adjusted EBIT increased by 150 basis points to a 14.3% margin.
Thom Browne's adjusted EBIT contracted to €4 million, impacted by a sharp decline in wholesale revenues, while Tom Ford Fashion recorded an adjusted EBIT loss of €19 million due to planned investments. Capital expenditure in H1 2025 was €54 million, with two-thirds allocated to store network development and the remainder to production and IT.
Looking ahead, management maintains a cautious outlook for 2025, anticipating low single-digit organic revenue growth and adjusted EBIT around €173 million, reflecting currency fluctuations and market volatility. Adjusted EBIT in the second half of 2025 is projected to be higher than the first half due to implemented profitability protection measures.
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