Ermenegildo Zegna N.V.

In first-half 2026, gross profit was EUR 668 million and gross margin was 67.6%. Adjusted EBIT was slightly above EUR 74 million versus EUR 69 million in the first half of last year, and profit was EUR 28 million versus EUR 48 million last year. SG&A was EUR 531 million, or 53.8% of revenues, and marketing was EUR 68 million, or 6.9% of revenues. CapEx was EUR 64 million, free cash flow was EUR 19.9 million, trade working capital was EUR 420 million, and net cash was EUR 60 million at the end of June. For the year, management said Zegna segment adjusted EBIT margin should be around 15%, Thom Browne H2 2026 EBIT should return positive and full-year EBIT should be close to breakeven, and TOM FORD Fashion should finish 2026 with adjusted EBIT in the region of a few million negative.

Gianluca Tagliabue emphasized that the Zegna brand is delivering “high-quality growth,” with solid DTC performance, market share gains, and continued momentum into July and August. He said the group is strengthening brands through disciplined execution, especially at Zegna and TOM FORD, while Thom Browne is in a longer transformation toward a retail-first model. His tone was confident but patient, repeatedly stressing that brand building and organizational change take time.

Paola Durante focused on the margin and cash bridge: gross profit reached EUR 668 million at a 67.6% margin, SG&A improved to 53.8% of revenues, and adjusted EBIT rose to just above EUR 74 million. She highlighted that DTC accounted for 86% of branded group revenues, up from 82% a year ago, while forex reduced top-line growth by 3 percentage points. She also said CapEx was EUR 64 million, free cash flow was EUR 19.9 million versus a EUR 23 million absorption last year, and net cash improved to EUR 60 million; she reiterated a normal tax rate of about 28%-30% and said full-year tax rate should not be different in a material way.

Analysts pressed on Zegna’s second-half margin pattern, China, wholesale trends, Thom Browne’s turnaround, and full-year consensus. Management said Zegna’s full-year EBIT margin should be around 15%, wholesale should keep contracting overall, and China remains volatile but Zegna is gaining share while Thom Browne is softer. On Thom Browne, management said the transition is taking longer because the brand is reshaping its leadership, assortment, open-to-buy, and retail capabilities; they still expect H2 EBIT to improve on lower FX headwinds, better inventory management, and tighter costs. They also said full-year 2026 adjusted EBIT consensus around EUR 195 million is still reasonable, and 2027 guidance remains at the lower end of the range, with EUR 250 million EBIT cited.