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)

The S&P Global Eurozone Manufacturing PMI rose to 51.6 in March from 50.8 in February, marking a 45-month high and signalling continued expansion. The Output Index also edged up to 52.0, its strongest level in seven months, supported by modest gains in production and new orders.

Eurozone manufacturing expanded in March 2026, with PMI rising to 51.6, a 45-month high, supported by modest gains in output and orders.
Export demand stabilised and backlogs increased.
However, Middle East conflict-driven disruptions lengthened delivery times and pushed input cost inflation to a 41-month high.
Firms raised prices, employment declined, and business confidence weakened.

A key positive development was the stabilisation of export demand after eight months of contraction, while backlogs of work increased for the first time in nearly four years, indicating emerging capacity pressures. Purchasing activity also expanded for the first time since June 2022, reflecting improved business activity, S&P Global said in a press release.

However, supply-side disruptions dominated the outlook. Suppliers’ delivery times lengthened to the greatest extent in over three-and-a-half years, largely due to logistics disruptions stemming from the ongoing Middle East war. At the same time, input cost inflation surged to a 41-month high, driven by rising energy and raw material prices.

The impact of these pressures was visible across the region. Greece and Ireland led growth, while Spain remained in contraction. Germany and Italy recorded their strongest readings in 46 and 37 months, respectively, while France’s manufacturing sector stagnated.

Despite rising backlogs, employment declined at a faster pace, suggesting firms remain cautious amid uncertainty. Inventories of both inputs and finished goods were reduced more sharply, reflecting tighter supply conditions.

Manufacturers passed on higher costs to customers, with output price inflation accelerating to a more than three-year high. Meanwhile, business confidence weakened to a five-month low, falling below the long-term average as geopolitical risks cloud the outlook.

Joe Hayes, principal economist at S&P Global Market Intelligence, said the Middle East conflict has already disrupted logistics and pushed input costs sharply higher. He noted that while the sector had been gradually recovering in early 2026, rising inflation and reduced competitiveness could dampen demand if disruptions persist.

Overall, while eurozone manufacturing remains in expansion territory, the balance between recovery and renewed pressure appears increasingly fragile amid escalating geopolitical and cost challenges.

Fibre2Fashion News Desk (SG)

The seasonally-adjusted S&P Global US manufacturing PMI recorded 52.3 in March. That was an improvement from 51.6 in February and indicative of a moderate rate of expansion. It was the eighth successive month that the PMI has posted above the critical 50 no-change mark.

However, with tariffs continuing to hit new export sales, US growth was principally driven by higher domestic demand. Moreover, this in part reflected some client safety stock building due to the war in the Middle East, which drove up inflation and added to supply-chain stress.

US manufacturing performance improved in March, with growth solid and picking up since February amid better gains in both output and new orders, S&P Global US manufacturing PMI data show.
However, with tariffs continuing to hit new export sales, US growth was principally driven by higher domestic demand.
Firms are hopeful that March’s overall increase in sales will be sustained over the coming months.

March’s survey signalled notable accelerations in both input and output price inflation, whilst the time taken to deliver inputs to manufacturers deteriorated to the greatest degree since October 2022, a release from S&P Global said.

Meanwhile, confidence in the outlook softened fractionally, with firms noting worries over higher energy prices and tariffs.

Employment numbers were little changed overall.

Higher output and new orders helped to support the PMI in March. In both instances, growth rates were solid.

Firms are hopeful that March’s overall increase in sales will be sustained over the coming months. Confidence in the outlook remained positive overall.

However, worries over energy prices and tariffs meant expectations softened slightly since February.

Fibre2Fashion News Desk (DS)