Gildo Zegna on Flexibility, Vision to Tackle New Normal

Core Insights - The Ermenegildo Zegna Group is undergoing a generational transition with Gildo Zegna stepping into the role of executive chairman and Gianluca Tagliabue becoming CEO, while Zegna's sons, Angelo and Edoardo, are co-CEOs of the Zegna brand [1][5] - The company reported a positive performance in its direct-to-consumer (DTC) channel, which has been a key driver of growth despite challenges in wholesale distribution [4][5] Financial Performance - In 2025, group revenues reached 1.91 billion euros, showing organic growth of 1.1 percent, with DTC revenues rising 4.2 percent to 1.45 billion euros [3][5][20] - Fourth-quarter revenues for 2025 were 591 million euros, up 0.3 percent, with organic sales increasing by 4.6 percent [2][5] - Group wholesale revenues fell significantly by 20.9 percent to 318.1 million euros as the company chose to deemphasize this channel [6] Regional Performance - In the Americas, group sales increased by 7.9 percent to 566.1 million euros, accounting for 30 percent of total sales, with strong results from Zegna and Thom Browne [11] - Sales in the Greater China Region decreased by 14.6 percent to 435.2 million euros, impacted by a slowdown in DTC performance and wholesale distribution [21] Strategic Initiatives - The company is focusing on personalization and enhancing customer experiences, exemplified by the opening of new Salotto Zegna locations and the Villa Zegna concept [8][10] - Zegna is optimistic about growth potential in Asia, particularly with new marketing strategies and product offerings under Thom Browne's leadership [17] Brand Performance - Zegna brand revenues totaled 1.18 billion euros in 2025, up 1.5 percent, with a notable organic growth of 4.7 percent [15] - Thom Browne's sales decreased by 14.7 percent to 268.5 million euros, but showed organic growth of 1.4 percent in the last quarter [16] - Tom Ford Fashion revenues amounted to 317.1 million euros, reflecting a slight increase of 0.8 percent at current exchange rates [18]