Zegna Profit Jumps 53% in Q2 2025
Zegna(NYSE:ZGN) reported first-half 2025 results on Sept. 5, 2025, with revenues of 928 million euros, a 2% organic decline year over year, and net profit up 53% to 47.9 million euros. The company’s direct-to-consumer (DTC) channel now accounts for 82% of branded sales, and management reaffirmed guidance for low single-digit organic sales growth for the full year, while highlighting ongoing volatility in the Greater China Region (GCR).
The following insights highlight key strategic developments, margin drivers, and management’s approach to risk and capital allocation.
Gross margin rose 110 basis points to 67.5% in the first half of 2025, driven by a higher mix of DTC sales, which increased to 82% of branded revenues from 76% in the prior-year period. This shift occurred alongside continued investments in IT, talent, and new store openings, with DTC organic growth offsetting wholesale declines.
Source Fool.com
