Zegna Profits Surged 53% Amidst Luxury Slowdown

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Summary

  • The Zegna Group reported a 53% surge in net profits for the first half of 2025, reaching €47.9 million.
  • This performance stands in contrast to luxury competitors like LVMH and Kering, which reported significant revenue and net profit declines, highlighting Zegna’s successful direct-to-consumer strategy.

Despite facing economic instability and disruptions in their supply chains like other high-end brands such as Kering and LVMH, Zegna Group has demonstrated resilience, not only surviving the pressure but also growing. The company, established in 1910, recorded a significant increase of 53% in net profits for the first half of 2025, amounting to €47.9 million, equivalent to approximately $56M USD.

Despite a 2% organic decrease in total revenue for Zegna, the company continues to express optimism, as reported by WWD. In a recent earnings call, Gildo Zegna emphasized the authenticity of their brands, the strength of their vision, and the talent within their team. He also stated that they are staying on course to meet their 2027 objectives, despite any challenges posed by industry trends or currency fluctuations.

Despite the general slowdown affecting luxury giants such as Kering and LVMH, this specific label has bucked the trend, showing remarkable growth instead. For instance, LVMH announced a 4% decrease in revenue and a 22% drop in net profit for that same period. Matters were even more challenging for Kering, who reported a 16% decline in overall revenue and a significant 46% drop in net income, with Gucci being particularly hard-hit.

Zegna’s growth is largely due to its expanding direct-to-consumer (DTC) initiatives, resulting in an 82% share of total branded sales and a 6% organic increase. This strategy not only boosts profits but also provides the company with more control over its brand identity and consumer interaction. While many luxury brands are finding it difficult to sustain growth, Zegna’s strategic move has made it a strong and adaptable figure in an unpredictable market environment.

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2025-09-07 19:27