Italian luxury group Zegna posts 2.6% drop in organic revenues in second quarter

Ermenegildo Zegna NV

30/07/2025 11:49

MILAN, July 30 (Reuters) - Italian luxury group Ermenegildo Zegna JN0.F reported a 2.6% drop in second-quarter organic revenues on Wednesday as sales in its wholesale channel sank, especially for the smaller Thom Browne brand, and with weakness in the Chinese market.

Organic revenue totalled 469 million euros ($541 million) for the April-June quarter, broadly in line with an analyst consensus provided by Visible Alpha.

Sales in the period were dragged down by a 17% drop in the Greater China region. The stronger euro also impacted the revenues.

The decline in the wholesale performance in part reflects a decision to shift the focus away from this part of the business.

"Our strategic initiatives and actions taken are yielding results, even though the sector navigates a continuously challenging environment", Chairman and CEO Gildo Zegna said in a statement.

The group also announced that Sam Lobban, who had been working at department store group Nordstrom, will be Thom Browne's new CEO as Rodrigo Bazan stepped down after nine years to "pursue other opportunities".

Singapore's state investment firm Temasek agreed on Tuesday to increase its stake in Ermenegildo Zegna Group to 10%.

Zegna said that the $126 million proceeds would strengthen its financial position and enable it to seize any opportunities that arise.
 ($1 = 0.8665 euros)

 (Reporting by Elisa Anzolin
Editing by Keith Weir)

 ((elisa.anzolin@thomsonreuters.com; 0039 0266129692;))