Fashion
Itlay’s Ermenegildo Zegna’s FY25 profit jumps 20% despite revenue dip
The gross profit remained broadly stable at €1.2940 billion versus €1.2966 billion a year earlier, but the gross profit margin improved by 90 basis points to 67.5 per cent from 66.6 per cent. This was mainly supported by a more favourable channel mix, with direct-to-consumer sales rising to 82 per cent of total branded product revenues in FY25, compared to 78 per cent in FY24.
Ermenegildo Zegna Group reported a 20 per cent YoY rise in FY25 profit to €109.5 million (~$125.9 million), despite a 1.5 per cent dip in revenue to €1.9169 billion (~$2.204 billion).
Organic growth stood at 1.1 per cent.
Margins improved on a stronger DTC mix, while operating profit declined.
Zegna remained resilient, but Thom Browne lagged.
The operating profit, however, declined to €139.5 million from €166.9 million, reflecting higher overheads, continued investments in retail, personnel and IT, as well as negative operating leverage, especially at Thom Browne, the Zegna group said in a press release.
Adjusted EBIT stood at €163 million in FY25, down from €184 million in FY24. Excluding a €10 million provision for expected losses on trade receivables related to Saks Global following its Chapter 11 filing, adjusted EBIT would have been €173 million.
The adjusted EBIT margin narrowed to 8.5 per cent from 9.5 per cent a year earlier. Selling, general and administrative expenses rose to €1.0339 billion, or 53.9 per cent of revenues, from €1.0083 billion, or 51.8 per cent, in FY24. Marketing expenses were broadly flat at €120.7 million.
Ermenegildo Gildo Zegna, executive chairman of the group, said: “In 2025 our Group delivered solid revenue and net profit growth despite a continued challenging environment for the sector. Group revenues reached €1.9 billion, +1.1 per cent organic, which translated to a Profit of €109 million, up 20 per cent compared to last year. We also closed the year with a cash surplus of €52 million, further strengthening our Group’s financial flexibility.”
“Looking ahead, recent developments in the Middle East have introduced additional uncertainty across the sector. In this more complex environment, our priorities remain clear: disciplined growth, strong cash generation, and rigorous execution to deliver on our targets. While we remain vigilant to potential risks, our ambitions are unchanged—and so is our determination to deliver on them, together,” added Zegna.
Zegna segment, which includes the Zegna brand, textile and other, generated revenues of €1.3632 billion, up 1.1 per cent YoY and 3.7 per cent on an organic basis. Its adjusted EBIT rose 4.9 per cent to €196.7 million, with margin improving to 14.4 per cent from 13.9 per cent, helped by a favourable channel mix, steady revenue growth and cost control. At the brand level, Zegna revenues increased 1.5 per cent to €1.1816 billion, or 4.7 per cent organically.
Performance was weaker at Thom Browne, where revenues fell 14.6 per cent to €268.9 million, or 12.1 per cent on an organic basis, as the brand continued to streamline its wholesale channel. Adjusted EBIT plunged to just €952 thousand from €27.3 million in FY24, while the adjusted EBIT margin dropped sharply to 0.4 per cent from 8.7 per cent. The group said the decline was driven by a 40 per cent fall in wholesale revenues and investments linked to selected store openings as it shifts further towards direct retail control.
Tom Ford Fashion posted a modest 0.8 per cent rise in revenues to €317.1 million, with organic growth of 3.1 per cent. However, the business remained loss-making at the adjusted EBIT level, reporting a negative €15.5 million compared to a negative €10.1 million in FY24. The weaker profitability reflected ongoing investments in personnel, IT systems and the direct-to-consumer network to support the brand’s development.
Capital expenditure declined to €102.9 million from €125.5 million, with around 60 per cent directed towards the store network, alongside spending on a new footwear production plant in Parma and IT projects. The group ended 2025 with a cash surplus of €52.1 million, compared to net financial indebtedness of €94.2 million a year earlier.
Looking ahead, the group said geopolitical tensions, particularly recent developments in the Middle East, have reduced visibility on luxury demand in 2026. Even so, management said it remains focused on delivering its 2027 targets, while closely monitoring risks linked to the duration of the conflict and its potential impact on global growth and consumer spending.
Fibre2Fashion News Desk (SG)
All customs dossiers will then be processed through a single clearance team.
Vietnam’s Hai Phong region’s customs department will launch a pilot centralised customs clearance model from June 1 to cut clearance times by 30-50 per cent and lower logistics and compliance costs.
Customs dossiers will then be processed through a single clearance team.
Administrative procedures and inconsistent implementation of regulations are the major challenges for businesses, EuroCham Vietnam said.
Deputy president of the Hai Phong Business Association Vu Ngoc Lam called on customs authorities to provide more detailed guidance for companies on electronic documentation, declaration classification, supplementary declarations, cargo release procedures and tax and fee payments under the new system, according to a domestic media outlet.
He also urged the authorities to maintain dedicated support channels for businesses and strengthen data connectivity among customs agencies, ports, shipping lines, logistics firms, warehouses and import-export enterprises.
Administrative procedures and inconsistent implementation of regulations across localities remain major challenges for businesses, Nguyen Hai Minh, deputy president of the European Chamber of Commerce in Vietnam, said.
Fibre2Fashion News Desk (DS)
Industrial activity stayed strong in many segments. The index of eight core industries witnessed an uptick. Manufacturing PMI also rose marginally as cost pressures and geopolitical spillovers kept growth momentum in new orders and output slow.
India’s economic activity in April showed resilience notwithstanding deceleration in some of the indicators, and the economy showed strength despite geopolitical and trade related uncertainties, an article in the RBI Bulletin said.
Industrial activity was strong in many segments.
However, financial conditions, crude oil prices and capital flows continue to pose challenges to the external sector outlook.
However, financial conditions, crude oil prices and capital flows continue to pose challenges to the external sector outlook, the article said.
Early results of listed private non-financial companies for the fourth quarter (Q4) of fiscal 2025-26 (FY26) also showed an improvement in business performance over the previous quarter, with aggregate sales and operating profit recording a double-digit growth.
The merchandise trade deficit widened in April this year over March, with rising import bill primarily on account of crude oil and gold imports. The trade deficit also registered an increase albeit marginally vis-a-vis April 2025.
The available high-frequency indicators of economic activity in April generally suggest sustained demand, notwithstanding challenges in a few sectors.
India is witnessing a trade reconfiguration amidst the emerging geopolitical situation, the article titled ‘State of the Economy’ noted. Its trade through the Strait of Hormuz that had declined sequentially in March went up in April this year.
Despite significant increase in input cost, operating profit growth of manufacturing companies remained broadly stable during Q4 FY26. However, the operating profit margin softened during the quarter.
However, the near-term outlook is somewhat clouded by supply side pressures, the article noted.
It said though headline inflation remains firmly within the tolerance band, the pass-through to domestic prices needs to be monitored.
Fibre2Fashion News Desk (DS)
The extension follows a brief lapse in the programme in September 2025, which had caused uncertainty for African exporters dependent on US market access.
Exporters in many African nations have regained duty-free access to the US after the African Growth and Opportunity Act (AGOA) was extended till 2026 end by a US presidential proclamation.
The extension follows a lapse in the programme in late 2025, which had caused uncertainty for African exporters dependent on US market access.
Gabon was reinstated as an AGOA beneficiary, reversing its 2023 removal.
It was restored in February 2026 when Trump signed the Consolidated Appropriations Act, extending AGOA retroactively to the end of 2026.
The latest presidential proclamation on May 19 formally implemented the extension and updated US tariff schedules. Gabon has been reinstated as a beneficiary of AGOA after making sufficient progress on governance and eligibility, reversing its 2023 removal.
The announcement is a big relief for African economies that depend heavily on AGOA-linked trade, particularly in labour-intensive sectors like garments, where duty-free access significantly improves competitiveness in the US market.
But the limited extension continues uncertainty over the long-term future of the programme.
Fibre2Fashion News Desk (DS)
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