Zegna’s resilience stands out as luxury peers LVMH and Kering report steep declines.
Strong Growth Despite Market Pressures
Ermenegildo Zegna Group reported a 53 percent surge in net profits for the first half of 2025, reaching €47.9 million (approx. $56M USD). The result highlights the company’s resilience at a time when major luxury players are struggling with weak consumer sentiment and global supply chain challenges.
Although overall revenue fell 2 percent organically, Zegna remains confident in its long-term trajectory. “We remain on track to achieve our 2027 targets, despite sector and currency headwinds,” said CEO Gildo Zegna, crediting the authenticity of the brand and the strength of its team for the robust performance.
Contrast With Struggling Peers
The upbeat results stand in sharp contrast to rivals. LVMH reported a 4 percent drop in revenue and a 22 percent decline in net profit during the same period. Kering fared even worse, with group revenue down 16 percent and net income plunging 46 percent, largely due to a sharp slowdown at Gucci.
Zegna’s performance underscores how agile strategies can set brands apart in a slowing luxury market, where traditional giants are battling shifting demand patterns.
Direct-to-Consumer Fuels Success
A key driver of Zegna’s growth has been its direct-to-consumer (DTC) strategy, which delivered 6 percent organic growth and now accounts for 82 percent of branded sales. By focusing on tighter control over distribution and customer engagement, the company has boosted margins and strengthened its brand DNA.
This strategic emphasis positions Zegna as one of the few luxury groups to grow profits amidst sector-wide turbulence, setting the foundation for its 2027 ambitions.