Ermenegildo Zegna Group reported first-half 2026 revenues of €987 million, a 9% organic increase that exceeded analyst forecasts by approximately 7%. Adjusted earnings before interest and taxes rose to €74 million, up from €73 million in the prior-year period, while reported profit declined to €28 million from €48 million due to a €28 million non-cash gain in H1 2025.
Gross margin expanded by 10 basis points to 67.6%, supported by a 12.1% reported increase in direct-to-consumer sales, which now represent 86% of branded revenue compared with 82% a year earlier. The group maintained its full-year adjusted EBIT guidance of approximately €195 million, slightly above the €190 million consensus.
Segment performance showed divergence, with the core Zegna brand posting €724 million in revenues and adjusted EBIT of €107 million, an EBIT margin of 14.8%. Thom Browne reported €123 million in revenues but swung to an adjusted EBIT loss of €8 million, while Tom Ford Fashion generated €157 million in revenue with an adjusted EBIT loss of €12 million. Management noted that the latter two brands are expected to return to profitability in the second half of 2026.
Geographic performance highlighted strong growth in the Americas, where revenues rose 15.1% reported and 19.8% organically to €302 million, including a 20% reported increase in the second quarter. Greater China and Rest of APAC also posted positive organic growth, while EMEA remained nearly flat. The group’s store network held steady at 474 locations, with Thom Browne expanding to 128 stores and Zegna reducing its footprint to 279.
Free cash flow improved to €19 million from a negative €23 million in the prior-year period, driven by operating cash flow of €158 million. Net cash surplus increased to €60 million as of June 30, up from €52 million at year-end 2025. Capital expenditures rose to €64 million, including investments in a new footwear and leather goods production facility in Parma, Italy, slated for completion by year-end 2026.
