Ermenegildo Zegna (NYSE:ZGN) reported a sequential acceleration in preliminary second-quarter 2026 revenue, with management citing broad-based strength in its direct-to-consumer business and continued progress in shifting the group toward a retail-first model.
Paola Durante, Chief of External Relations and Sustainability, said group revenue reached EUR 517 million in the second quarter, up 11% on an organic basis. Durante said the company focuses on organic performance when discussing revenue trends because it excludes foreign exchange effects and “better reflects the underlying business dynamics.”
Brand Performance Led by DTC Growth
The ZEGNA brand generated EUR 324 million in second-quarter revenue, with management pointing to sequential acceleration and strong DTC performance across all regions. Durante said ZEGNA’s DTC revenue, which accounted for 90% of the brand’s first-half revenue, rose 18% organically in the quarter, entirely driven by comparable sales. Wholesale revenue for the brand declined 3% organically, reflecting the group’s continued focus on direct customer relationships and exclusive retail experiences.
Thom Browne reported EUR 65 million in second-quarter revenue, up 3% organically. The brand’s DTC revenue rose 16%, driven by the Americas, Korea and Japan, and helped by new space contribution. The company opened three net doors during the quarter, including locations in Chicago and Vancouver. Wholesale revenue fell 29% organically, reflecting channel streamlining and the conversion of distribution in Hong Kong. Durante said wholesale represented only 17% of Thom Browne’s first-half revenue and is expected to decline around 30% for the full year.
TOM FORD FASHION generated EUR 89 million in second-quarter revenue, up 7% organically. Durante said DTC revenue increased 13%, led mainly by the Americas, with the rest of APAC outperforming. She said the performance was driven entirely by comparable store sales growth and supported by customer reception of the spring/summer collections. Wholesale revenue declined 3%, and management reiterated expectations for a low- to mid-single-digit decline by year-end.
The group’s textile business declined 3% in the quarter, which Durante attributed largely to the phasing of deliveries.
Americas and APAC Show Strong Momentum
By geography, the Americas posted the strongest second-quarter growth, rising 22% organically. Durante said the region, which represented 31% of first-half group revenue, benefited from double-digit DTC growth across all three brands.
Greater China, representing 24% of first-half group revenue, grew 9% organically in the second quarter, accelerating from the first quarter. The rest of APAC rose 19% organically, with all markets contributing, particularly Korea and Japan. EMEA, which accounted for 33% of first-half revenue, grew 2% organically, as solid DTC performance across the three brands was offset by reduced wholesale revenue. Durante also said the Middle East turned positive in the second quarter.
In response to analyst questions, Group CEO Gianluca Tagliabue said the quarter was solid across all three months, with “a bit of acceleration in May and June.” He said China improved sequentially as the company focused on areas such as Su Misura and Triple Stitch, while continuing to invest in “fewer, better doors.” Tagliabue noted planned or recent important openings in Hong Kong’s Harbour City and Shenzhen’s MixC Shenzhen Bay.
Management Highlights Events and Brand Initiatives
Tagliabue highlighted several marketing and brand initiatives during the quarter, including the ZEGNA brand’s La Villeggiatura event in Los Angeles. He said the five-day event at Chateau Marmont and the Malibu pier generated coverage, recognition and client interest that exceeded expectations.
He also pointed to ZEGNA’s Art Basel initiative, Thom Browne’s first-ever show during June Men’s Fashion Week in Milan, and TOM FORD FASHION’s presence at the 2026 Met Gala and Cannes Film Festival. Tagliabue said TOM FORD FASHION is working across marketing, merchandising, CRM and selected store openings to support future growth.
For ZEGNA, Tagliabue said the main product drivers included Su Misura, luxury leisurewear and shoes. He said average unit retail was the main contributor to DTC growth, but described it as a mix effect rather than simply price increases. He also said the company is seeing new clients enter the ZEGNA brand, often for high-ticket items, even as its strategy remains focused on the top of the customer pyramid.
For TOM FORD FASHION, Tagliabue said women’s ready-to-wear is gaining momentum, with particular opportunity in daywear. He also said the brand has started offering made-to-measure tailoring for women, supported by the group’s supply chain capabilities.
Outlook: DTC Solid, Comparisons More Challenging
Tagliabue said the company remains focused on delivering its 2027 targets and called full-year 2026 consensus “reasonable.” In the Q&A, he clarified that when management refers to consensus as feasible, it is referring to absolute EBIT numbers.
He cautioned that the second half may be more challenging from a comparison standpoint and noted that the second quarter benefited from specific initiatives that are not expected to repeat in the same way, including the ZEGNA Los Angeles event and the ASICS launch for Thom Browne.
Asked about July trends, Tagliabue said it was early to draw conclusions but that the underlying DTC trend remained solid. He cited continued strength in the Americas, resilience in the Middle East, Asia in line with Greater China trends and strength in the rest of APAC, while noting some softness in continental Europe.
Management also discussed cost considerations, including marketing investments behind the brands, group-level initiatives intended to create future synergies, and first-half foreign exchange headwinds. Tagliabue said higher-end mix and made-to-measure products do not automatically translate into higher gross margin percentage because they also carry higher production costs.
Separately, Tagliabue said the company has identified three main areas for artificial intelligence use: operational and demand planning, customer interaction and CRM, and internal productivity across back-end functions.
About Ermenegildo Zegna (NYSE:ZGN)
Ermenegildo Zegna is a global luxury fashion house specializing in men’s tailored clothing, casualwear, accessories, footwear and fragrances. With a focus on high-quality fabrics and craftsmanship, the company manages the entire value chain from wool sourcing and textile production to garment design, manufacturing and retail distribution.
Founded in 1910 by Ermenegildo Zegna in Trivero, Italy, the company began as a textile mill dedicated to producing fine wool fabrics. Over the decades it expanded into ready-to-wear clothing and built a reputation for sartorial excellence.
