EarningsQ2 2026 Earnings Report
MX:ZGNN Q2 2026 EPS Results
Actual EPS$1.84
Consensus EPS$3.27
Beat/MissMissed by -$1.43
One Year Ago EPS$3.48
MX:ZGNN Q2 2026 Revenue Results
Actual Revenue$20.92B
Expected Revenue$10.57B
Beat/MissBeat by +$10.34B
YoY Revenue Growth+13.67%
Earnings Announcement Details
QuarterQ2 2026
Date09/03/2026
TimeBefore Open
Conference CallThursday, September 3, 2026
MX:ZGNN Upcoming Earnings
Ermenegildo Zegna's next earnings date is estimated for April 8, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:ZGNN Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive, supported by group adjusted EBIT growth, Zegna's strong double-digit DTC momentum and margin expansion, improved free cash flow and net cash, and expected second-half improvement at Thom Browne. The main challenges were foreign exchange headwinds, lower reported net profit, a higher first-half tax rate, continued wholesale contraction, Thom Browne's ongoing transition and Q3 deceleration, and TOM FORD Fashion remaining slightly loss-making for the full year.Company Guidance
Gross Profit Supported by Direct-to-Consumer Mix
First-half 2026 gross profit reached EUR 668 million, with a 67.6% margin on revenues. Direct-to-consumer revenues represented 86% of branded group revenues, up from 82% in the first half of last year, supporting gross margin through a favorable channel mix.
Improved SG&A Leverage Despite Distribution Investments
SG&A expenses were EUR 531 million, with their incidence on revenues slightly decreasing to 53.8%. The improvement was primarily driven by improved operating leverage and lower impairment costs, despite ongoing investments in expanding the DTC distribution network.
Disciplined Marketing Investment
Marketing expenses were EUR 68 million, broadly stable at 6.9% of revenues. Management described the spending as focused and selective to support brand equity, with approximately 70%-75% related to the Zegna segment.
Group Adjusted EBIT Growth
First-half adjusted EBIT increased to slightly above EUR 74 million from EUR 69 million in the first half of last year, with a 7.5% margin.
Zegna Segment Margin Expansion
The Zegna segment generated EUR 107 million of adjusted EBIT, with a 14.8% margin versus 14.3% in the first half of last year. The 50 basis points improvement was largely driven by operating leverage in the DTC channel, higher revenues per square meter, and improved DTC KPIs including sell-through.
TOM FORD Fashion Loss Narrowed
TOM FORD Fashion improved its adjusted EBIT loss to EUR 12 million from a EUR 19 million loss in the first half of last year, primarily due to revenue growth, greater absorption of fixed costs, and ongoing cost discipline.
Improved Cash Flow and Net Cash Position
Free cash flow was EUR 19.9 million in the first half of 2026 compared with EUR 23 million of cash absorption in the first half of last year. The improvement was attributed to stronger operating cash generation, higher EBIT, and improved trade working capital. Net cash increased to EUR 60 million at the end of June from EUR 52 million at the end of December 2025.
Lower Trade Working Capital
Trade working capital declined to EUR 420 million at the end of June from EUR 442 million a year earlier, mainly driven by lower receivables resulting from the streamlining of the wholesale business.
Investment in Parma Production Plant
Capital expenditure reached EUR 64 million, an increase of EUR 10 million versus last year, mainly related to higher production investments, including the new shoe production plant in Parma, which is expected to begin operating by the end of the year.
Strong Zegna Brand Momentum
Management reported solid top-line growth and margin expansion for the Zegna brand, supported by market-share gains among loyal customers, new-client acquisition, and consistent brand positioning. Momentum continued through July and August, including a substantial, solid, double-digit positive trend in Zegna DTC across regions and nationalities.
Positive Performance in America and Key Zegna Categories
North American consumers delivered very solid double-digit growth in July and August, with positive performance from both Zegna and TOM FORD. Across America, GCR, and Europe, Zegna experienced growth in the number of consumers and volumes, with solid growth in shoes, Triple Stitch, 232 and other models, knitwear, five-pocket pants, eyewear, and fragrances.
Zegna Market-Share Momentum in China
Despite volatility in the Chinese market, management said Zegna was gaining market share and continued to perform well in July and August. The brand is focusing on underrepresented opportunities including Triple Stitch, Su Misura, and other categories.
TOM FORD Brand and Product Development
TOM FORD Fashion continued to show healthy momentum as awareness and engagement built. Management highlighted its fall marketing campaign, the launch of women's tailoring, leather outerwear on a made-to-measure basis, and ongoing development of women's bags as product opportunities.
Expected Improvement in Thom Browne Second-Half Profitability
Management expects Thom Browne's adjusted EBIT to return to positive territory in the second half of 2026, bringing full-year EBIT close to breakeven. The stated drivers include lower currency headwinds, more focused open-to-buy and inventory management, tight cost control, and a deceleration in team-related cost increases.
Thom Browne Brand Engagement and Transformation Initiatives
Management said the ASICS collaboration confirmed that Thom Browne continues to resonate with consumers. The company is reshaping leadership and working on collection merchandising, assortment, marketing, go-to-market execution, and retail capabilities to build a broader customer base and a sustainable growth platform.
Zegna Margin Target and Long-Term Opportunity
Management expects the Zegna segment's full-year 2026 adjusted EBIT margin to be in the region of 15%. Longer term, the stated target is to move toward a range between 15% and 20%, although management said this will take time.
Full-Year Profit Expected to Remain Close to Prior Year
Management expects full-year 2026 profit after tax to be not too far from last year's level despite the absence of the EUR 37 million positive financial income and FX impact from the Thom Browne put option remeasurement recognized in 2025. The lower second-half tax rate and absence of the prior-year Saks group credit write-down were cited as factors.
Strategic Retail Openings and Supply-Chain Investment
The group is reinvesting in fewer, better doors, including recent Zegna openings in Shenzhen Bay, Harbour City in Hong Kong, and Madrid, plus a new Saint Moritz store planned for December. TOM FORD has four material openings planned through January, including three in the United States and a Paris flagship. Management also described the Parma project as a center of excellence supporting craftsmanship, innovation, and the Italian integrated supply chain.
MX:ZGNN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed