Zegna group sees 2.5% revenue surge, dtc dominance reaches 85%
Ermenegildo Zegna Group defied expectations, reporting a 2.5% year-over-year revenue increase to €458.8 million in the first quarter of fiscal 2026. The luxury conglomerate, encompassing Zegna, Thom Browne, and licensee Tom Ford Fashion, is clearly leaning into its retail-first strategy, a move underscored by a significant 7.8% growth in direct-to-consumer (DTC) channels – now representing a commanding 85% of total sales.
Thom browne faces wholesale headwinds, but ackermann’s vision boosts tom ford
While the group’s overall performance painted a picture of sustained momentum, Thom Browne presented a more complex narrative. Revenues dipped 9.4% to €58.2 million, largely due to a decline in the wholesale sector. However, the brand’s DTC channel demonstrated resilience, offsetting the slump with double-digit growth. Notably, the Americas and EMEA regions fueled Zegna’s expansion, witnessing double-digit growth rates – a testament to the enduring appeal of their collections.
The launch of creative director Haider Ackermann’s Fall/Winter 2026 collection proved a particular catalyst for Tom Ford Fashion, resulting in a modest 0.4% revenue increase to €67.5 million. This signals a deliberate attempt to inject fresh energy into the brand’s portfolio, demonstrating a keen awareness of evolving consumer tastes.
Regional disparities highlight strategic shifts
Regional performance varied considerably. The Americas led the way with a robust 9.6% revenue increase to €137 million, while EMEA experienced a slight contraction of 0.8% to €152.9 million, primarily attributed to weakened wholesale activity. Greater China showed cautious growth at 0.7% to €124 million, though Asia-Pacific as a whole saw a marginal decline of 0.6% to €55.5 million. These figures reveal a strategic recalibration, prioritizing direct consumer engagement.
Looking ahead, Group Chairman Ermenegildo “Gildo” Zegna emphasized a ‘think slow, act fast’ approach. This isn’t simply corporate jargon; it’s a recognition that adapting to evolving market conditions—particularly challenging ones—is paramount. The group’s long-term objectives remain steadfast, yet the speed of execution will be critical. And with sales up €458.8 million, the Group clearly believes it is on course to deliver.
A measured expansion – for now
The results demonstrate a carefully calibrated expansion, prioritizing DTC and capitalizing on regional strengths. The focus on the Americas, coupled with the revitalized Tom Ford Fashion, suggests a strategic realignment aimed at sustaining growth and navigating a complex global landscape. The shift is not merely about growth; it’s about controlling the narrative and maintaining a premium brand image.