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Ermenegildo Zegna N.V. (ZGN) is a leading global luxury group specializing in high-end menswear, womenswear, and accessories. The company is renowned for its heritage of craftsmanship, innovative design, and commitment to quality. Zegna operates through three main brands: ZEGNA, Thom Browne, and TOM FORD FASHION, offering a wide range of luxury products including apparel, footwear, leather goods, and textiles.
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ZEGNA - Offers luxury menswear, footwear, leather goods, and accessories, along with high-end textiles for third-party customers and internal use. Includes additional revenues from agreements with third-party brands.
- ZEGNA Branded Products - Features apparel, bags, shoes, and leather goods, as well as licensed goods and royalties.
- Textile - Designs and manufactures luxury fabrics under various brands.
- Other - Includes revenues from agreements with third-party brands.
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Thom Browne - Focuses on modern tailoring and offers menswear, womenswear, and accessories under the Thom Browne brand.
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TOM FORD FASHION - Provides menswear, womenswear, and accessories under the TOM FORD brand through a long-term licensing agreement with Estée Lauder Companies Inc..
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Ermenegildo (Gildo) Zegna di Monte Rubello ExecutiveBoard | Chairperson, Chief Executive Officer, and Executive Director | Chairman of the board of directors of Monterubello; Chairman of the board of directors of Thom Browne Inc.; Chairman of the board of directors of Tom Ford International LLC; Member of the board of directors of Luigi Fedeli & Figlio S.r.l. | Ermenegildo (Gildo) Zegna di Monte Rubello has been the CEO of Ermenegildo Zegna Group since December 2021. He joined the company’s board in 1989 and previously served as Co-Chief Executive Officer from 1998 to 2006. | View Report → |
Alessandro Sartori Executive | Artistic Director of ZEGNA | Alessandro Sartori is the Artistic Director of ZEGNA since 2016 and began his career with the company in 1989. He previously served as Creative Director of Z Zegna starting in 2003 and led the brand's debut runway show in 2007. | ||
Franco Ferraris Executive | Head of Textiles | Chairman of Bonotto S.p.A.; Chairman of Gruppo Dondi S.p.A.; Chairman of Tessitura Ubertino S.r.l.; Board member at Finissaggio e Tintoria Ferraris S.p.A.; Board member at Pettinatura di Verrone S.r.l.; Board member at F2 S.r.l.; Board member at Immobiliare Giulia s.s.; Board member at Immobiliare Magda s.s.; Chairman of Fondazione Cassa di Risparmio di Biella (2015-2023) | Franco Ferraris has been the Head of Textiles at Zegna since 1992, playing a key role in overseeing the company’s textile operations. He also serves as the Chief Executive Officer and General Manager of Lanificio Ermenegildo Zegna e Figli S.p.A. (since 1992) and took on the Managing Director role in 2022, further enhancing his executive experience. | |
Gianluca Ambrogio Tagliabue Executive | Chief Operating Officer (COO) | Gianluca Ambrogio Tagliabue is the Chief Operating Officer (COO) and Chief Financial Officer (CFO) at Ermenegildo Zegna N.V. since January 2020, having initially joined the company in January 2016 as CFO and Head of Business Development. | ||
Lelio Gavazza Executive | Chief Executive Officer of TOM FORD FASHION | CEO of TOM FORD FASHION since September 18, 2023, and a key member of Zegna Group's Senior Management Team. Previously served in various executive roles at Bulgari, SharMoon, and Mantero Seta, building a robust background in global luxury leadership. | ||
Rodrigo Bazan Executive | Chief Executive Officer of Thom Browne | CEO of Thom Browne since 2016; previously served as President at Alexander Wang (2010–2016), Vice President and General Manager at Marc Jacobs International (2007–2010), and CFO/General Manager at Alexander McQueen (2003–2007). | ||
Thom Browne Executive | Founder and Chief Creative Officer | Thom Browne has served as the Founder and Chief Creative Officer of his brand since 2002, with his brand becoming part of the Ermenegildo Zegna Group following the acquisition in November 2018. |
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Given that Tom Ford Fashion’s Q1 revenue contribution was closer to 20% of its annual target rather than the 25% we initially assumed, how should we interpret the brand’s trajectory in the upcoming quarters, and what adjustments are being planned to accelerate its performance?
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With the decision to move from wholesale to a more retail-focused model, especially for Thom Browne in markets like Korea and China, can you elaborate on the expected magnitude of revenue decline in wholesale for Thom Browne in Q2 and beyond, and how this might impact overall margins?
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The management noted that the DTC channel’s exit rate in March was consistent with the quarter’s trend; does this stability suggest a strong customer retention strategy, or are there underlying challenges in converting new customers across different regions?
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In light of the planned low single-digit price increases for the fall/winter period, how do you expect these adjustments to effectively offset rising costs without compromising the luxury positioning of the Zegna and Thom Browne brands?
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With the integrated supply chain being touted as a key tool for managing inventory, particularly in the challenging Chinese market, can you provide more concrete details on how inventory management improvements will mitigate margin pressure amid cautious consumer demand?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Ermenegildo Zegna Korea Co. Ltd. | 2024 | Completed acquisition on January 1, 2024, for 100% ownership of the Korean business comprising a network of 15 stores. The deal involved a total consideration of €11.51 million (cash of €8.97 million plus €2.54 million to settle intercompany balances), with goodwill of €8.28 million reflecting expected synergies and enhanced direct operational control in South Korea. |
Thom Browne Inc. | 2024 | Planned consolidation transactions in 2024 increased Zegna Group’s stake to approximately 92% through the exercise of a put option, involving a transaction valued at around $25 million and additional equity and liability adjustments, which further streamline control over the business. |
Ermenegildo Zegna Madrid S.A. | 2024 | Completed acquisition on June 27, 2024, where the Group acquired the remaining 30% interest for a cash consideration of €750 thousand, bringing its ownership to 100% and consolidating control over the Madrid operations. |
Tom Ford International (TFI) | 2023 | Completed acquisition on April 28, 2023, whereby Zegna Group acquired the additional 85% equity interest for an implied $150 million (cash-free and debt-free basis) and secured a 20+10-year licensing agreement with ELC, taking full operational control of the Tom Ford Fashion business including a network of 51 directly operated stores and full control over Pelletteria Tizeta S.r.l.. |
Norda Run Inc. | 2023 | Completed acquisition on March 31, 2023, obtaining a 25% minority stake for $7.1 million with an option to increase the stake over the next nine years. The deal is aligned with Zegna’s luxury outdoor strategy, involves significant influence through equity method accounting, and resulted in net cash outflows of €6,728 thousand. |
Recent press releases and 8-K filings for ZGN.
- Q1 2025 group revenues reached €459m (range: €458.8m–€459m), reflecting roughly a 1% YoY decline
- The Direct-to-Consumer (DTC) channel outperformed, achieving +5% organic growth and generating €345m in revenues, significantly supporting key brands
- Key strategic initiatives included new product launches (summer drop collection), planned mid-single digit pricing adjustments to offset a 10% tariff impact, and efforts to convert wholesale stores to DTC outlets
- The ZEGNA brand delivered +3% organic growth, while Thom Browne experienced notable declines (down 9% and down 19% organic )
- Geographically, the Americas enjoyed double-digit growth for Zegna, whereas the Greater China region faced a 12% decline amid a cautious approach, with early signs of retail recovery
- Several store openings for ZEGNA, Thom Browne, and TOM FORD FASHION enhanced brand visibility in key markets
- Ermenegildo Zegna Group will report its first quarter 2025 unaudited revenues on April 24, 2025, at 6:30 a.m. ET (12:30 p.m. CET).
- A conference call will follow at 8:00 a.m. ET (2:00 p.m. CET), with details for live webcast and dial-in provided.
- The announcement reinforces the Group’s position as a leading global luxury menswear company, having recorded €1.95 billion in revenues in 2024 and employing over 7,100 people.
- Full Year 2024: Revenues of €1,947M, Adjusted EBIT of €184M and profit of €91M
- Q4 2024 Highlights: Consolidated revenues of €589M with a 3% YoY increase; ZEGNA brand delivered €353M with 7% organic growth
- Strategic Outlook: 2025 guidance is cautious with low single-digit growth, planned CapEx of 6%-7%, cost control measures, and a focus on strengthening DTC channels and refining the product assortment
- Filed annual report on Form 20-F for the fiscal year ended December 31, 2024, as disclosed in the 6-K report dated March 27, 2025, under the oversight of COO and CFO Gianluca Ambrogio Tagliabue
- Confirmed dividend of €0.12 per ordinary share and announced strategic investments in talent, store network, and marketing
- Brand Performance: Thom Browne at €95M (-3% organic) and TOM FORD FASHION at €101M (+4% organic)
- Market Expansion: Leveraging key markets in EMEA, the Americas, and Japan to drive future growth
- FY24 Consolidated Performance: Reported Group revenues of €1,947m (up 2.2% YoY) with Q4 revenues of €589m (up 3%-3.3% YoY and +4% in constant currency)
- ZEGNA Brand Strength: The ZEGNA brand delivered strong Q4 results with €353m in revenue and +7% organic growth driven by robust Direct-to-Consumer initiatives
- Premium Lines Performance: THOM BROWNE reported €95m (-3% organic) while TOM FORD FASHION achieved €101m (+4% organic) supported by enhanced DTC efforts
- DTC & Retail Momentum: Strong Direct-to-Consumer performance across key regions—including EMEA, Americas, Japan, North America, and the Middle East—and strategic new store launches are propelling growth
- Strategic Investments: Significant brand-focused investments in talent, merchandising, and technology were announced, with comprehensive financial results to be released in March
- Sustainability Initiatives: Commitment to sustainability with 98% renewable electricity in Europe and proactive supplier management underlines the company’s environmental focus