MILAN — Gildo Zegna believes flexibility, a clear vision and planning ahead are the reliable tools needed to face “the new normal, which is more uncertain and less predictable.”
On Monday, in his first official interview a month after moving to the role of executive chairman of the group as part of a generational handover, Zegna was brimming with energy and ideas as he commented on Ermenegildo Zegna Group’s preliminary 2025 sales.
Although he cited “nonlinear paths” as geopolitical issues can curb spending and traveling, leading to prudence, the executive sounded a positive note as the Italian fashion group reported a strong performance in its direct-to-consumer channel, which offset the ongoing streamlining of its wholesale distribution, and solid gains at the Zegna brand.
Last year, group revenues showed organic growth of 1.1 percent to 1.91 billion euros, driven by the DTC channel at the Zegna brand. At current exchange rates, sales decreased 1.5 percent compared with 1.94 billion euros in 2024.
In the fourth quarter of 2025, revenues reached 591 million euros, up 0.3 percent. Organic sales were up 4.6 percent.
“Forex [foreign exchange rates] is still a concern, and let’s hope [U.S.] tariffs have settled. The wars are ongoing, but we are serene, we must be agile and my role is also to anticipate changes and identify the ways to react to positive or negative issues,” Zegna said.
As reported, Zegna, who has led the group since 2006 and was previously group chairman and chief executive officer, passed the CEO baton to former chief financial officer Gianluca Tagliabue effective Jan. 1. Zegna’s sons Angelo and Edoardo, members of the family’s fourth generation, were named co-CEOs of the Zegna brand, reporting to Tagliabue.
“This first month has been positive, the changes were planned over time, so they did not bring confusion or anxiety. Although it’s a learning process, there’s clarity in the organization, with a good integration of my sons and Gianluca, who keep me informed, and I can provide my suggestions, and on some central projects I am still entirely involved. I am deeply committed,” Zegna continued. “There is a lot of energy. My role is also to use my personal connections; I continue to travel and I have more time to do things. For example, I will attend Hong Kong Art Basel in March, and meet with investors, press and customers. If you have clear ideas and think in advance you are prone to make less mistakes and you can see more opportunities.”
In the year, group DTC revenues rose 4.2 percent to 1.45 billion euros, with Zegna and Thom Browne accelerating in the last quarter. In the fourth quarter, the channel was up 3.9 percent at current exchange rates, but showed 9.6 percent organic growth.
Group wholesale revenues fell 20.9 percent to 318.1 million euros, reflecting the company’s choice to deemphasize this channel.
Model Gigi Hadid walks the runway at Tom Ford’s spring 2023 show at Skylight on Vesey on Sept. 14, 2022, in New York. (Photo by Giovanni Giannoni/WWD via Getty Images)
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Zegna touted the sequential improvement and positive contribution of each of the group’s three brands, Zegna, Thom Browne and Tom Ford Fashion. “Zegna, in particular, accelerated further during the quarter boosted by a double-digit organic growth in the DTC channel. This performance confirms the strength of our vision and the relevance of our strategy,” he said.
He underscored during the interview the importance of personalization and touted the effect on business and on the community of Villa Zegna, which he described as “a very important formula that blends beauty, fun and commerce, with a wow effect and superior products.”
The latest Villa Zegna was unveiled with the fall 2026 Zegna collection in Milan and is still available above the Via Montenapoleone store. Zegna said it has “surpassed our expectations.” He personally accompanied a client to the store for a two-hour experience at Villa Zegna on Saturday. “I like to see the effect of our new products,” he said.
Those that are defined “Zegna Friends” spend at least 50,000 euros a year, and the executive said he’s seen “very good results” from this cluster. “We are aiming to elevate our products for the other two brands eyeing the high-spending customers, and fueled by our filiera [pipeline], there is no reason this can’t be done for Tom Ford Fashion and Thom Browne,” he remarked.
He revealed that the first Salotto Zegna in New York will open in the first quarter of 2027 within the brand’s store at Fifth Avenue and 57th Street, an additional 2,700 square feet, “like an exclusive club that will offer personalization year-round,” he said. Previous Salotto Zegna units opened in Dubai, Singapore, Shanghai and Beijing.
He admitted he was “bullish” about the U.S. for the group’s three brands. In the Americas, group sales rose 7.9 percent to 566.1 million euros, accounting for 30 percent of the total. In the last quarter, revenues advanced 9.3 percent with very strong results at Zegna and Thom Browne.
Backstage at the Thom Browne spring 2026 show on Oct. 6, 2025, in Paris.
WWD/WWD
Both Zegna and Tagliabue addressed Saks Global’s for Chapter 11 bankruptcy during a conference call with analysts. “Saks is an important partner and we are closely monitoring it as it stabilizes but we have the business strength to absorb this,” Zegna said. “The situation is very complex and we must be ready to find solutions, defending [ourselves] but supporting [the store].”
As reported, the Zegna Group is owed $26.3 million.
The bankruptcy has “limited impact on our sales,” added Tagliabue. Confirming that analysts’ consensus of earnings before interest and taxes consensus of 173 million euros is reasonable, Tagliabue added that “isolating Saks, because it’s not an issue of inventory but debt accrual, with a low-single-digit incidence on revenues, we can offset the overall impact,” he said.
He also confirmed the consensus of a 5 percent increase in sales.
Asked about the foreign exchange impact, Tagliabue said the 2.6 percent headwinds on currency experienced in 2025 are expected to be “similar for 2026 and can be mitigated by hedging. We are covered for fall.” The pricing for 2026 will see a mid single-digit increase due to currency fluctuations, he said.
In 2025, revenues at the Zegna brand totaled 1.18 billion euros, up 1.5 percent versus 2024. Organically, they rose 4.7 percent. In the fourth quarter, sales amounted to 361.7 million euros, up 2.4 percent at current exchange rates and 7.4 percent organically, driven by sequential acceleration in the DTC channel.
New Zegna stores will open in Shenzhen Bay, Paris, Riyadh, Abu Dhabi, San Diego and Scottsdale.
Thom Browne sales decreased 14.7 percent to 268.5 million euros in 2025, but in the fourth quarter they were down 3.7 percent. Organically, they were up 1.4 percent to 91.1 million euros in the last quarter, with double-digit growth in the DTC channel, offset by the continued streamlining of the wholesale business.
Zegna admitted the brand is suffering in China but that there is growth potential in Asia, praising new Thom Browne CEO Sam Lobban’s new organization in marketing and merchandising, offering “more innovative products in stores, and more accessories, a new merchandise mix that is showing a slight growth in retail. We are transforming the brand into a retail first and their first results are still timid, we are not yet where we want to be. But we’ve taken the right steps.” A store recently opened in Melrose Place in Los Angeles.
Tom Ford Fashion revenues amounted to 317.1 million euros, up 0.8 percent at current exchange, and 3.1 percent organically. In the fourth quarter, sales amounted to 98.3 million euros, down 2.3 percent at current exchange, but up 1.5 percent organically driven by the positive performance of DTC.
Zegna touted the “Haider effect,” referring to Haider Ackermann, who was named creative director in September 2024, succeeding Peter Hawkings, and who has been building the womenswear division and “confirmed the men’s solidity.” The brand will open a flagship in Paris by the end of 2026. Other new stores are earmarked for Costa Mesa, Calif., Bal Harbour, Fla., and San Diego, following a unit in Toronto last November.
In 2025, textile revenues amounted to 134.2 million euros, down 2.8 percent, but up 2 percent in the fourth quarter.
In 2025, group DTC revenues totaled 1.45 billion euros, up 4.2 percent year-on-year.
In the Europe, Middle East and Africa region, sales were up 0.5 percent to 683.8 million euros, representing 36 percent of group revenues. The region showed an acceleration in the fourth quarter, gaining 4.7 percent in the period, mainly driven by the DTC channel from both local and tourist customers.
In 2025, sales in the Greater China Region decreased 14.6 percent to 435.2 million euros, representing 23 percent of the total, impacted by a slowdown at Thom Browne and Tom Ford Fashion DTC, as well as the group’s wholesale performance, influenced by different delivery timing.
Tagliabue said China is expected “to remain volatile” in 2026. Zegna said the retail experience for Tom Ford Fashion and Thom Browne must be strengthened in the region.
He added that there have been “slight improvements” in Hong Kong, but that in January, the group did not see a different trend in the DTC channel compared with the last quarter, isolating the fact that Chinese New Year takes place in February in 2026 compared to January in 2025.
In the rest of Asia-Pacific, sales totaled 228.8 million euros, slipping 0.5 percent.
