Zegna Group: Q2 Sales Dip, Temasek Investment & Ceo Change

By region, the Americas outmatched in Q2, up 4.5 per cent year-on-year to EUR137.7 million, driven by a strong efficiency by Zegna and Thom Browne in the DTC networks. EMEA (Europe, the Middle East and Africa) earnings were down 2.9 per cent to EUR174.8 million, affected by an unfavorable wholesale performance. Greater China profits fell 21.3 per cent to EUR99.8 million, while incomes for the rest of Asia-Pacic dropped 3.3 percent to EUR55.7 million.

Q2 2025 Financial Performance

Ermenegildo Zegna Group, the owner of Zegna and Thom Browne and licensee of Tom Ford Style, claimed that second-quarter incomes were down 6 per cent year-on-year to EUR468.9 million. Revenues for the very first fifty percent of fiscal 2025 made out slightly better, helped by the first quarter’s direct-to-consumer (DTC) boost, dropping 3 per cent year-on-year to EUR927.7 million. Shares dropped 3.4 percent complying with the outcomes.

Strategic Initiatives and Market Challenges

“The strong organic DTC channel efficiency in Q2 2025 for the team demonstrates that our strategic initiatives and activities are yielding results, even though the sector browses a constantly difficult environment,” CEO Ermenegildo ‘Gildo’ Zegna said in a statement. “The current months were likewise marked by several pivotal milestones for the team and our brands, starting with our first Zegna fashion program beyond Milan in June, along with Vacation Home Zegna Dubai.”

Temasek Investment and Company Strategy

The telephone call adheres to Tuesday’s announcement that Zegna Group has actually accepted transfer 14.1 million shares at $8.95 per share to Singaporean investment company Temasek. Zegna will certainly receive $126.4 million in cash once the acquisition is total. The offer will close on 30 July. On Wednesday’s telephone call, CFO Gianluca Tagliabue assured capitalists that there is no purpose to offer the company. “There is no intention to go personal. I simply intend to make that clear,” he stated. “There is no purpose for the family members to sell, and I simply wish to tension that the family has actually not offered a share.” (It was treasury shares that were sold.).

Thom Browne’s New CEO: Sam Lobban

On the telephone call, the team likewise announced Thom Browne’s brand-new chief executive officer. Existing CEO Rodrigo Bazan will certainly step down from the function on 31 August. Sam Lobban, presently executive VP and general merchandising manager for garments and designer at Nordstrom, will certainly think the position on 2 September. “I welcome Sam Lobban as the brand name’s new chief executive officer,” Zegna claimed in his declaration. “With his considerable history in retailing and customer-first state of mind, Sam is extremely well suited to lead this brand in recording its unspoken possibility.”.

Brand Performance Overview

By brand name, Zegna revenues were down 2 per cent year-on-year for the quarter to EUR277.5 million; Thom Browne was down 25.9 percent to EUR65.1 million; and Tom Ford Style revenues were up 2.1 percent to EUR85.2 million.

Future Outlook and Regional Trends

Moving forward, the business is expecting a relatively consistent performance throughout the rest of the fiscal year. “Presently, I don’t assume that we’re going to find a different course in terms of patterns in the 2nd half [of the year], as in the initial fifty percent,” Tagliabue stated. “The nations that do well like the Gulf and the Americas, and I would state additionally Europe, will certainly continue their course and Asia will keep being unstable. The reality that Temasek has become a significant investor, I assume they can really support us in creating in that part [of the globe], yet I don’t see different fads as contrasted to the first half of the year.”.

Ermenegildo Zegna Team, the owner of Zegna and Thom Browne and licensee of Tom Ford Fashion, said that second-quarter profits were down 6 per cent year-on-year to EUR468.9 million. Profits for the first half of fiscal 2025 made out slightly better, aided by the very first quarter’s direct-to-consumer (DTC) increase, dropping 3 per cent year-on-year to EUR927.7 million. By region, the Americas surpassed in Q2, up 4.5 per cent year-on-year to EUR137.7 million, driven by a strong efficiency by Zegna and Thom Browne in the DTC networks. EMEA (Europe, the Center East and Africa) profits were down 2.9 per cent to EUR174.8 million, impacted by an adverse wholesale efficiency. Greater China incomes fell 21.3 per cent to EUR99.8 million, while earnings for the rest of Asia-Pacic fell 3.3 per cent to EUR55.7 million.