Core Insights - Ermenegildo Zegna Group reported a profit of €109.5 million for FY 2025, reflecting a 20% increase year-on-year, alongside a cash surplus of €52 million [1][2][4] Financial Performance - Group revenues for FY 2025 reached €1.9 billion, representing a 1.5% decline year-on-year but a 1.1% organic growth [2][4] - Adjusted EBIT for FY 2025 was €163 million, down from €184 million in FY 2024, impacted by a €10 million provision for expected losses related to Saks Global [1][4][16] - Gross profit margin improved to 67.5%, up from 66.6% in FY 2024, driven by a favorable channel mix with direct-to-consumer sales increasing to 82% of total branded products revenues [4][10] Segment Analysis - Zegna brand revenues were €1.36 billion, up 1.1% year-on-year, while Thom Browne revenues fell 14.6% to €268.9 million, and Tom Ford Fashion revenues increased by 0.8% to €317.1 million [9][25][27] - Adjusted EBIT for the Zegna segment was €196.7 million with a margin of 14.4%, while Thom Browne's adjusted EBIT was €952 thousand with a margin of 0.4% [24][26] Cash Flow and Financial Position - The company achieved a cash surplus of €52.1 million at the end of FY 2025, a significant improvement from a net financial indebtedness of €94.2 million in FY 2024 [4][33] - Free cash flow for FY 2025 was €82.1 million, up from €10.1 million in FY 2024, attributed to higher cash flow from operating activities and improved working capital management [34] Capital Expenditure - Capital expenditure for FY 2025 was €102.9 million, down from €125.5 million in FY 2024, primarily focused on store network investments and IT initiatives [31][32] Outlook and Strategic Focus - The company remains focused on disciplined growth and strong cash generation despite uncertainties in the global economic outlook, particularly due to geopolitical tensions in the Middle East [3][34] - A proposed dividend of €0.12 per share was announced, subject to shareholder approval [38]