Chairman Discusses Ermenegildo Zegna Group | Money News

MILAN – A day after revealing Temasek Holdings’ investment within the company, the Ermenegildo Zegna Group on Wednesday reported revenues of 927.7 million euros within the first half of the yr. This is a 3.4 % lower from 960.1 million euros in the identical period in 2023.  In the second quarter, revenues fell 5.7 % to 468.9 million euros, dented by the appreciation of the euro. In natural phrases, they have been down 2.6 %.

In an interview, chairman and chief government officer Gildo Zegna stated that the efficiency was impacted by “our choice to streamline our wholesale channel, but the decrease was offset by a strong direct-to-consumer business, up 8 percent in organic terms in the second quarter, even beyond our expectations.” Also, the Americas and the Middle East contributed to stability the continuing slowdown and volatility  in China, he stated.

To be sure, in natural phrases, the Zegna and Thom Browne manufacturers every grew by 7 % within the DTC channel whereas Tom Ford Fashion was up 11 %.

“We are not worried about the tariffs [imposed by the U.S. government], it’s a level that we can absorb,” Zegna stated. “We have already made some adjustments to our prices in June.”

The major challenges he sees going ahead derive from the “geopolitical situation. I am relatively serene about the rest. We have the right foundations to do quite well in the second half, barring extraordinary events, and I am certain we will grow in the medium term.”

As of Wednesday, the Singapore-based investment company Temasek holds a 10 % stake within the Italian group, and  Zegna during the interview elaborated on the partnership. “It allows us to strengthen our organic expansion globally as a long-term partner, leveraging Temasek’s knowledge of the Asian market.”

He stated the connection with Temasek dates back years, and expressed his pleasure and pleasure in being chosen for the investment. “They were looking for a strong Made in Italy brand. They are well-established at a global level and this partnership gives me confidence. Temasek is customer-centric, they have experience in hospitality, in retailing with the Paragon mall, they have invested in luxury in Moncler, and they will help us expand in the Far East, which is still underdeveloped.”   

The government added that a Salotto Zegna, reserved for Su Misura and personalization, opened in Singapore a month in the past. Asked if he would plan a runway show in Singapore, after Dubai’s spring 2026 assortment unveiled in June, Zegna stated his namesake model will return to Milan in January however that he would contemplate an occasion within the Asian metropolis and that he’s planning one for the Formula 1 Grand Prix there in October.

“I want to clarify that the Zegna family did not sell shares to Temasek and that there is absolutely no plan to delist” from the New York Stock Exchange, he concluded.

Sam Lobban Confirmed as New Thom Browne CEO

Zegna confirmed a WWD scoop posted earlier on Wednesday about Thom Browne CEO Rodrigo Bazan exiting the model on Aug. 31. He can be succeeded by Sam Lobban, at present serving as government vice president and basic merchandising supervisor for attire and designer at Nordstrom. Zegna praised Lobban’s “extensive background in merchandising and his customer-first mindset. This is the right choice, he is very competent and loves the brand, he has all the assets to do well.”

Lobban can be primarily based in New York. At the identical time, Zegna made a level to thank Bazan for main Thom Browne since 2016, growing its gross sales threefold.

Asked in regards to the latest declines in gross sales at that model, Zegna stated that the market has modified and that “we are ready with a different business model, we had grown too much with wholesale and we have strengthened the brand’s retail channel, modeling our strategy after the Zegna brand’s.”

There are 120 Thom Browne shops and Zegna admitted “there are a few too many in China, and we need to develop the accessories segment and increase business in the U.S. and Europe. I am confident we will succeed.”

Thom Browne earlier this month opened an equipment solely store on Madison Avenue in Manhattan.

Sales by Brand

In the primary six months ended June 30, gross sales of the Zegna model inched up 0.8 % to 570.4 million euros, whereas Thom Browne gross sales fell 22.5 % to 129.2 million euros.

Tom Ford Fashion rose 2.8 % to 152.7 million euros. Haider Ackermann debuted his first assortment as inventive director of Tom Ford during Paris Fashion Week on March 5 to unveil the model’s fall 2025 assortment.

The textile phase was down 6.6 % to 67 million euros, largely reflecting declining orders from manufacturers exterior the group.

Sales by Distribution

In the primary half, group DTC revenues rose 4.2 % to 698 million euros, representing 82 % of the group’s branded product revenues.

Zegna’s DTC revenues grew 3.7 % at present exchange charges to 504.5 million euros, pushed by the Americas with robust double-digit growth, accelerating within the second quarter, adopted by strong double-digit growth within the Europe, Middle East and Africa area, specifically within the Middle East. Performance within the DTC channel within the Greater China area within the second half remained destructive and broadly in step with the primary quarter.

On June 30, Zegna counted 286 instantly operated shops, together with an further store in Dubai Mall (Level Shoes) and in Porto Cervo, Italy.

Thom Browne DTC revenues rose 3 % to 92.6 million euros, pushed by efficiency within the Americas. In the second quarter, the model opened shops in Los Angeles Melrose, New York Madison and Tokyo Ginza.

Tom Ford Fashion DTC revenues climbed 8.4 % to 100.9 million euros with all areas exhibiting constructive natural efficiency and EMEA delivering the strongest outcomes. The model has 66 DOS, with one internet opening within the second quarter in Hong Kong Pacific Place.

In the primary half, group wholesale branded revenues fell 27.1 % to 154.2 million euros.

Zegna wholesale revenues have been down 17.1 % to 65.9 million euros, due to the conversion into retail concessions of some shops and a shift in supply timing.

Thom Browne wholesale revenues have been slashed by 52.4 % to 36.5 million euros, as per the strategy to streamline the model’s wholesale presence to give attention to the DTC channel.

Tom Ford Fashion wholesale revenues have been down 6.5 % to 51.8 million euros,  primarily pushed by some earlier conversions of shops into retail concessions.

Zegna touted “a good balance of each brand by geography. In 2026, we need to continue to fine tune this in each market.” He expects volatility to proceed in 2026 however believes “spaces will open globally and we can catch new opportunities,” eyeing for instance openings in Paris for Tom Ford and Thom Browne.

Sales by Region

In the primary half, group revenues in EMEA have been down 2.3 % to 328.9 million euros,  representing 35 % of the full, dented by the destructive leads to the wholesale channel on the three manufacturers. The chairman and CEO stated that the group had not been impacted by a slowdown in tourism.

Sales within the Americas rose 6.8 % to 262.7 million euros, accounting for 28 % of the full, pushed by the robust efficiency of the Zegna and Thom Browne DTC channel. Zegna cited Brazil and Mexico as strongly contributing to the efficiency within the Americas.

Revenues within the Greater China area decreased 16.2 % to 223.1 million euros, representing 24 % of the full. The efficiency was nonetheless impacted by a subdued shopper atmosphere within the area. “This has become the new norm, we have to become more equipped to manage it,” stated Zegna. “China for the Zegna brand remains the most important market followed by the U.S. and we continue to believe in it, investing in a careful way.”

Sales in the remainder of Asia Pacific have been up 1.4 % to 111.5 million euros, accounting for 12 % of the full, reporting a demanding base of comparability in Japan for the entire sector and a more subdued shopper confidence in Korea.