An Italian luxury fashion house best known for high-end menswear, Zegna crafts suits, jackets, knitwear, shoes and accessories sold under its own name, with made-to-measure tailoring for discerning customers. It began in 1910 when the teenage Ermenegildo Zegna took over his father's small wool mill in Trivero, in the Biella Alps, and grew into a family-run textile and clothing empire. A fun twist: in the 1930s the founder planted over half a million trees around his mill, creating a mountain nature reserve that the family later named Oasi Zegna (Zegna Oasis).
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Zegna Group swung to a net cash surplus in FY2025 as operating cash flow rose, even as reported revenue fell 1.5% to €1.9B.
The Group moved from debt to a net cash position, a clear shift in financial footing. fell 1.5% to €1,916.9 million as a deliberate wholesale reset at Thom Browne outweighed direct-to-consumer growth, but profit rose 20.5% to €109.5 million on lower financial expenses and a swing to foreign exchange gains. The balance sheet is stronger, but the core luxury market in Greater China remains a drag.
Key takeaways
The Group's financial position swung to a of €52.1 million from a position of €94.2 million, driven by €335.6 million in and €107.2 million in proceeds from a share sale to Temasek.
Profit rose 20.5% to €109.5 million, mainly due to a swing to €9.0 million in foreign exchange gains from €11.3 million in losses the prior year, and a €17.0 million decrease in net financial expenses, largely from .
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
For information relating to the market risks that the Company is exposed to, refer to Note 35 — Qualitative and quantitative information on financial risks to the Consolidated Financial Statements included elsewhere in this report.
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For information relating to the market risks that the Company is exposed to, refer to Note 35 — Qualitative and quantitative information on financial risks to the Consolidated Financial Statements included elsewhere in this report.
Brand reputation, global economic and geopolitical instability, and execution of DTC and brand strategies are the most material risks.
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Reported fell 1.5% to €1,916.9 million, as a 20.9% decline in wholesale branded sales—driven by the strategic streamlining of Thom Browne's wholesale network—more than offset 4.2% growth in the direct-to-consumer channel.
improved to 67.5% from 66.6%, helped by a higher mix of direct-to-consumer sales, which reached 82% of branded revenues, and a €4.1 million government grant for R&D.
The Greater China Region remained a significant drag, with revenues falling 14.6% due to weak consumer confidence, while the Americas grew 7.9% on double-digit ZEGNA direct-to-consumer growth.
Selling, general and administrative expenses rose 2.5%, pressured by a €10.1 million provision for from the bankruptcy of wholesale customer Saks Global and a €3.8 million increase in .
What changed
The material weakness in internal control over financial reporting, flagged in both FY2023 and FY2024, was not mentioned as remediated in this filing, suggesting it persisted for a third consecutive year.
Thom Browne's , which fell 16.8% in FY2024 due to a wholesale reset, declined a further 20.9% in wholesale branded sales in FY2025, indicating the reset continued to weigh on the top line.
The Group's position, which deepened to €94.2 million in FY2024, reversed entirely in FY2025 to a of €52.1 million, aided by a share sale to Temasek and strong .
The Greater China Region's decline accelerated, with falling 14.6% in FY2025 after a 14.5% drop in FY2024, and its share of total revenue fell to 23% from 26% the prior year.
, which was just €10.1 million in FY2024, was not explicitly stated for FY2025, but rose to €335.6 million, suggesting a significant improvement in cash generation.
What to watch
Whether the material weakness in internal control over financial reporting is remediated in FY2026 after three consecutive years of disclosure.
The trajectory of Thom Browne's now that the wholesale reset appears largely complete, and whether its profitability can recover from the halved level seen in FY2024.
The impact of the Saks Global bankruptcy on wholesale and any further credit loss provisions beyond the €10 million already recorded.
The sustainability of the , particularly given the €107.2 million share sale to Temasek was a one-off inflow, and capital expenditure levels remain elevated.
Brand value is highly sensitive to creative direction, supply chain ethics, and third-party actions, with the Thom Browne-adidas trademark litigation posing a specific ongoing legal and financial risk.
A slowdown in the Greater China Region, which fell to 23% of 2025 revenues from 31% in 2023, is driven by weak consumer confidence and cautious discretionary spending, threatening a key growth market.
The , now 82% of branded revenues, carries high fixed costs and risk, with €15 million in store asset impairment losses recorded in 2025.
The bankruptcy of wholesale customer Saks Global in January 2026 led to a €10 million allowance for credit losses in 2025, highlighting counterparty risk in the .
Escalating geopolitical conflicts, including new U.S.-led military strikes in the Middle East in February 2026, directly threaten recent investments in the region and broader consumer demand.
Reliance on scarce, high-quality raw materials like cashmere and vicuña exposes the company to price spikes and supply disruptions from climate events and regulatory changes.
Ermenegildo Zegna Group operates three luxury segments—ZEGNA, Thom Browne, and TOM FORD FASHION—backed by an integrated Italian textile supply chain.
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The Group operates three segments: the Zegna (ZEGNA brand, Textile, and Other), Thom Browne, and Tom Ford Fashion, which together generated €1,917 million in 2025 .
ZEGNA is the largest (61.6% of ), focused on men's timeless luxury and driven by a direct-to-consumer network of 282 stores and a shift toward luxury leisurewear and iconic products like Triple Stitch and Oasi Cashmere.
Thom Browne (14.0% of ) is a New York-based luxury brand known for signature grey suits and four-bar identifiers, with a strategy to rebalance toward DTC, expand womenswear, and grow in North America.
TOM FORD FASHION (16.5% of ) operates under a long-term license from The Estée Lauder Companies, with a strategy to align its fashion business with global brand recognition under new Creative Director Haider Ackermann.
A key competitive advantage is the Group's 'Filiera,' a vertically integrated luxury textiles and manufacturing platform that includes Lanificio Ermenegildo Zegna, Dondi, Bonotto, and Tessitura Ubertino, enabling quality control and a best-in-class Made-to-Measure service.
The Group's channel accounted for 76% of consolidated revenues through 471 directly operated stores, with a strategic focus on enhancing retail experience and clienteling across all brands.
FY2025 revenues fell 1.5% to €1.9B, with DTC growth offset by wholesale streamlining; profit rose to €109M on lower financial expenses.
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Group revenues decreased 1.5% (-1.5% reported, +1.1% organic) to €1,916.9 million, as DTC growth (+4.2%) was more than offset by a sharp decline in wholesale branded sales (-20.9%), primarily from the strategic streamlining of Thom Browne's wholesale network.
margin improved to 67.5% from 66.6%, driven by a higher mix of DTC sales (82.0% of branded revenues vs. 77.6% in 2024) and a €4.1 million government grant for R&D, partially offset by negative foreign exchange impacts.
Selling, general and administrative expenses rose 2.5% to €1,033.9 million, pressured by costs for DTC network expansion, a €3.8 million increase in store charges, and a €10.1 million provision for expected credit losses from Saks Global's bankruptcy filing.
Profit increased 20.5% to €109.5 million, mainly due to a swing to €9.0 million in foreign exchange gains from €11.3 million in losses, and a €17.0 million decrease in net financial expenses, largely from fair value gains on liabilities.
Net was strong at €335.6 million, and the Group moved to a net cash surplus of €52.1 million from a position of €94.2 million, aided by €107.2 million in proceeds from a share sale to Temasek.
The Greater China Region remained a significant drag, with revenues falling 14.6% (-11.9% organic) due to challenging luxury sector conditions, while the Americas grew 7.9% (+12.0% organic) driven by double-digit ZEGNA DTC growth.