H1 2026
Filed Sep 3, 2026ERMENEGILDO ZEGNA GROUP REPORTS FIRST HALF 2026 REVENUES OF €987 MILLION WITH PROFIT AT €28 MILLION AND ADJUSTED EBIT AT €74 MILLION
Revenue, Adjusted EBIT, Adjusted EBIT Margin, Free Cash Flow and net cash surplus improved, led by DTC growth and Zegna margin expansion. Reported Profit declined because H1 2025 included non-cash gains from the fair value remeasurement of non-controlling interest put option liabilities, while Thom Browne moved to an Adjusted EBIT loss.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenuesother | €987.3M | – | 6.4 % |
| Revenues, organic growthnon-GAAP | 9.3 % | – | – |
| Q2 revenuesother | €517.1M | – | 10.3 % |
| Q2 revenues, organic growthnon-GAAP | 11.0 % | – | – |
| Gross profitother | €667.8M | – | – |
| Gross profit marginother | 67.6 % | – | – |
| Selling, general and administrative expensesother | €531.1M | – | – |
| Selling, general and administrative expenses as percentage of revenuesother | 53.8 % | – | – |
| Marketing expensesother | €68.20M | – | – |
| Marketing expenses as percentage of revenuesother | 6.9 % | – | – |
| Operating profitother | €68.54M | – | – |
| Operating profit marginother | 6.9 % | – | – |
| Profit before taxesother | €46.48M | – | – |
| Income taxesother | €18.05M | – | – |
| Effective tax rateother | 38.8% | – | – |
| Profitother | €28.43M | – | – |
| Profit marginother | 2.9 % | – | – |
| Profit attributable to shareholders of the Parent Companyother | €23.16M | – | – |
| Profit attributable to non-controlling interestsother | €5.27M | – | – |
| Basic earnings per shareother | € 0.09 | – | – |
| Diluted earnings per shareother | € 0.09 | – | – |
| Adjusted EBITnon-GAAP | €74.45M | – | 8.4 % |
| Adjusted EBIT Marginnon-GAAP | 7.5 % | – | – |
| Capital expenditureother | €63.99M | – | – |
| Capital expenditure as % of revenuesother | 6.5 % | – | – |
| Net cash flows from operating activitiesother | €157.8M | – | – |
| Free Cash Flownon-GAAP | €19.20M | – | – |
| Trade Working Capitalnon-GAAP | €420.0M | – | – |
| Net Financial Indebtedness/(Cash Surplus)non-GAAP | −€59.58M | – | – |
| Cash and cash equivalentsother | €226.7M | – | – |
| Non-current borrowingsother | €128.1M | – | – |
| Current borrowingsother | €96.65M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ZegnaOperating leverage in the DTC channel, supported by higher revenues per square meter and improved sell-through. | €724.3M | – | 9.7 % |
| Thom BrowneThe decrease was primarily driven by the negative forex exchange impact and investments to support the Brand’s transition to a retail-first culture. | €123.1M | – | (4.9 %) |
| Tom Ford FashionRevenue growth enabled greater absorption of fixed costs, coupled with cost control. | €156.8M | – | 2.7 % |
| Intersegment eliminationsIntersegment eliminations include revenues from sales of Textile and Other product lines to the Group’s brands. | −€16.90M | – | n.m. |
Capital returns
- Dividends paid to non-controlling interests: €1,254 thousand.
- Payments for acquisition of non-controlling interests: €(3) thousand.
What drove it
- DTC revenues were €782,780 thousand, up 12.1 % year-on-year and 15.8 % organic, and accounted for 86% of branded products compared with 82%.
- Wholesale branded revenues were €131,716 thousand, down 14.6 % year-on-year and down 13.3 % organic, reflecting continued streamlining across the three brands.
- Gross profit margin was supported by favorable channel mix, partially offset by adverse foreign exchange movements.
- The lower incidence of SG&A on revenues reflected improved operating leverage and lower impairment costs, partly offset by investments in the expansion of the DTC distribution network.
- Americas revenues were €302,348 thousand, up 15.1 % year-on-year and 19.8 % organic. Greater China Region revenues were €236,106 thousand, up 5.8 % year-on-year and 6.8 % organic. Rest of APAC revenues were €117,550 thousand, up 5.4 % year-on-year and 13.6 % organic.
Concerns
- Profit was €28,433 thousand, compared with €47,902 thousand, as H1 2025 included €27.8 million of non-cash gains from the fair value remeasurement of non-controlling interest put option liabilities.
- The sum of financial income, financial expenses, and foreign exchange gains and losses was negative €22.7 million, compared with positive €6.0 million in H1 2025.
- The effective tax rate increased to 38.8% from 29.6%.
- Thom Browne Adjusted EBIT was €(8,318) thousand, compared with €4,482 thousand.
- EMEA revenues were €329,978 thousand, up 0.3 % year-on-year and 1.5 % organic.
What to watch
- Zegna Adjusted EBIT Margin was 14.8 %, compared with 14.3 %, driven by DTC operating leverage, higher revenues per square meter and improved sell-through.
- Tom Ford Fashion Adjusted EBIT was €(12,118) thousand, compared with €(19,430) thousand.
- Capital expenditure was €63,991 thousand, primarily driven by investments in production activities, including the new shoe production plant in Parma (Italy), which will be operational by year end.
- The next financial release is October 22, 2026: Q3 2026 Unaudited Revenues.
- Group monobrand store count was 657 at June 30, 2026, compared with 666 at December 31, 2025 and 671 at June 30, 2025.
Balance sheet and cash flow
- Cash and cash equivalents were €226,715 thousand at June 30, 2026, compared with €220,121 thousand at December 31, 2025.
- Net Financial Indebtedness/(Cash Surplus) was €(59,581) thousand at June 30, 2026, compared with €(52,093) thousand at December 31, 2025 and €92,140 thousand at June 30, 2025.
- Trade Working Capital was €420,013 thousand at June 30, 2026, compared with €407,745 thousand at December 31, 2025 and €441,784 thousand at June 30, 2025.
- Inventories were €544,742 thousand at June 30, 2026, compared with €506,903 thousand at December 31, 2025.
- Net cash flows from operating activities were €157,827 thousand, compared with €105,714 thousand.
- Free Cash Flow was €19,203 thousand, compared with €(23,109) thousand.
- Net increase/(decrease) in cash and cash equivalents was €6,594 thousand, compared with €(59,234) thousand.
Analysis
H1 2026 revenues were €987,290 thousand, compared with €927,690 thousand, with 6.4 % reported growth and 9.3 % organic growth. The second quarter was stronger, with revenues of €517,115 thousand compared with €468,869 thousand and 10.3 % reported growth. DTC revenues reached €782,780 thousand, up 12.1 % and 15.8 % organic, while wholesale branded revenues declined 14.6 %. DTC represented 86% of branded products, compared with 82%.
Profitability improved at the operating level. Gross profit margin was 67.6 %, compared with 67.5 %, and operating profit was €68,539 thousand compared with €61,346 thousand. Adjusted EBIT increased to €74,455 thousand from €68,670 thousand, while Adjusted EBIT Margin expanded to 7.5 % from 7.4 %. The release attributes gross-margin support to favorable channel mix, while SG&A leverage and lower impairment costs supported the operating result.
Zegna was the principal segment contributor, generating €724,265 thousand of revenue, up 9.7 %, and €106,921 thousand of Adjusted EBIT, up from €94,390 thousand. Its Adjusted EBIT Margin reached 14.8 % from 14.3 %. Thom Browne revenues declined 4.9 % to €123,106 thousand and Adjusted EBIT shifted to €(8,318) thousand from €4,482 thousand. Tom Ford Fashion revenue increased 2.7 % to €156,817 thousand and its Adjusted EBIT loss narrowed to €(12,118) thousand from €(19,430) thousand.
Reported Profit declined to €28,433 thousand from €47,902 thousand. The filing identifies a negative €22.7 million combined financial income, financial expenses and foreign exchange result, compared with a positive €6.0 million in H1 2025, and notes that the prior period included €27.8 million of non-cash gains from remeasurement of non-controlling interest put option liabilities. The effective tax rate was 38.8%, compared with 29.6%.
Cash conversion strengthened. Net cash flows from operating activities were €157,827 thousand compared with €105,714 thousand, and Free Cash Flow was €19,203 thousand compared with €(23,109) thousand. Net Financial Indebtedness/(Cash Surplus) was €(59,581) thousand at June 30, 2026, compared with €(52,093) thousand at December 31, 2025. Capital expenditure increased to €63,991 thousand from €53,958 thousand, including investment in the new shoe production plant in Parma (Italy). The filing did not provide financial outlook or guidance.
Management, verbatim
The disciplined execution of our strategy resulted in a 9% organic growth in first-half revenues and an improvement of the Group’s Adjusted EBIT Margin despite adverse foreign exchange movements.
Ermenegildo “Gildo” Zegna, Group Executive Chairman
Not in the filing
stated, not guessed- Financial outlook or guidance was not provided.
- Previous-period outlook was not provided, so no comparison with prior guidance is available.
- Quarter-over-quarter comparisons for reported metrics were not provided.
- Share repurchases were not reported.
- Dividends to shareholders of the Parent Company were not reported.
- GAAP results were not reported because the filing presents results under IFRS Accounting Standards.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.