Zegna's Direct-to-Consumer Pivot Fuels Growth, Offsets Wholesale Retreat in 2025
MILAN — In a luxury sector navigating economic crosswinds, the Ermenegildo Zegna Group’s long-term bet on controlling its client relationships is delivering results. The Italian fashion house announced preliminary 2025 revenues of €1.91 billion, marking a 1.1 percent increase on an organic basis, even as reported sales dipped 1.5 percent due to currency fluctuations.
The standout driver was the group’s direct-to-consumer (DTC) operations, which have been the cornerstone of its strategic vision. This focus helped catalyze a notable sequential improvement, with organic sales growth accelerating to 4.6 percent in the critical fourth quarter, reaching €591 million in revenue.
"Our strategy is not just about sales channels; it's about deepening our dialogue with the customer," said Gildo Zegna, the group’s Executive Chairman. He highlighted a "double-digit organic growth in the DTC channel" for the flagship Zegna brand during the quarter as a key accelerant. The group’s DTC revenue climbed 4.2 percent for the full year to €1.45 billion.
This growth comes against a deliberate backdrop of scaling back wholesale dependencies. Group wholesale revenues contracted by 20.9 percent to €318.1 million, a strategic retreat the company signaled was intentional to prioritize owned retail and digital touchpoints.
The year 2025 also marked a historic leadership transition for the family-owned conglomerate. On January 1, Gildo Zegna passed the CEO role to former CFO Gianluca Tagliabue and his sons, Edoardo and Angelo Zegna, who now serve as co-CEOs representing the fourth generation. "I remain deeply committed to protecting our legacy—our uniqueness, our pursuit of excellence, and our unmatched *filiera*," the elder Zegna noted, linking the brand’s recent archival-inspired "A Family Closet" show to its enduring values.
Brand & Regional Performance: The Zegna brand itself saw organic growth of 4.7 percent for the year. While Thom Browne’s full-year sales declined, its fourth-quarter organic performance turned positive, buoyed by DTC. Tom Ford Fashion also posted organic growth. Geographically, the Americas region was a strong performer with 7.9 percent growth, while the Greater China region faced headwinds, declining 14.6 percent, partly due to delivery timing and brand-specific challenges.
Analyst & Industry Reaction:
"Zegna’s numbers validate a painful but necessary pivot. The wholesale haircut is severe, but the DTC growth quality is high, giving them better margin control and customer insight," said Marcus Thorne, a retail analyst at Bergamo Capital.
"The leadership handover to the next generation amidst a complex channel shift is a bold move. The 4Q acceleration suggests the new team is finding its footing, but the China weakness is a glaring concern that needs addressing," commented Elara Chen, Senior Editor at Luxury Pulse.
"A 1.1% organic growth is hardly revolutionary. They’re celebrating while essentially flatlining? This feels like spinning a wholesale collapse into a strategic victory. The ‘milestone’ seems more about the family succession than stellar performance," argued David Feldspar, a vocal industry critic and founder of the Honest Thread newsletter.
The group enters 2026 with a refined channel mix and a new executive structure, betting that a direct connection to its clientele will provide a more stable foundation than the traditional wholesale model in an uncertain market.