Zegna Group’s H1 Revenue Rises to €987.3 Million, but Net Profit Falls

The Italian luxury group said second-quarter revenue reached €517.1 million, up 10.3 percent year over year and 11 percent on an organic basis. Direct-to-consumer sales across the group climbed 12.1 percent as reported and 15.8 percent organically, accounting for 86 percent of branded product revenue versus 82 percent a year earlier.

Adjusted earnings before interest and taxes rose to €74.5 million from €68.7 million, lifting the margin to 7.5 percent from 7.4 percent. The company attributed the improvement to its continued focus on owned retail and direct distribution.

The Zegna brand proved the group’s main growth engine, with revenue hitting €634.6 million, up 11.2 percent on a reported basis and 13.9 percent organically. The Zegna segment’s adjusted EBIT increased 13.3 percent to €106.9 million, and its margin expanded to 14.8 percent.

Tom Ford Fashion delivered more modest growth, with revenue up 2.7 percent to €156.8 million, or 6.4 percent organically. Its adjusted EBIT remained negative at €12.1 million, though it improved significantly from a negative €19.4 million a year earlier.

Thom Browne was the laggard, as revenue fell 4.7 percent to €123.1 million and adjusted EBIT swung to a loss of €8.3 million from a gain of €4.5 million. The group cited currency headwinds and investments tied to the brand’s transition toward a more retail-focused model.

Despite the top-line growth, net profit declined in the first half, the group reported, although no detailed figure was provided in the announcement.