Zegna Profits Surged 53% Amidst Luxury Slowdown

Summary

• The Zegna Group reported a 53% surge in net profits for the first half of 2025, reaching €47.9 million.
• This performance stands in contrast to luxury competitors like LVMH and Kering, which reported significant revenue and net profit declines, highlighting Zegna’s successful direct-to-consumer strategy.

While other luxury giants, such as Kering and LVMH, continue to weather a period of economic uncertainty and supply chain upheaval, Zegna Group has proven its ability not only to withstand the pressure but also to continue thriving. The 1910-born company reported a 53% jump in net profits for the first half of 2025, ending in June, reaching €47.9 million (approximately $56M USD).

Though Zegna did see a 2% organic decline in overall revenue, the company maintained optimism.  According to WWD, in an earnings call, Gildo Zegna boasted “the authenticity of our brands, and — above all — the clarity of our vision and the talent of our team.” “We remain on track to achieve our 2027 targets, despite sector and currency headwind,” he added.

The label’s growth defies the slowdown that has been affecting luxury titans like Kering and LVMH. LVMH, for example, reported a 4% drop in revenue and a 22% decline in net profit for the same period. The situation was worse for Kering, which posted a 16% fall in group revenue and a steep 46% decline in net income, largely driven by a sharp slump at Gucci.

Zegna’s success is attributed to its growing direct-to-consumer (DTC) efforts, which saw a 6% organic growth and now make up 82% of branded sales. The strategy has not only increased margins but has also given the company greater autonomy over its brand DNA and customer experience. With major luxury players struggling to maintain momentum, Zegna’s strategic shift has positioned it as a resilient leader in a volatile market.

Stay tuned to Hypebeast for the latest fashion industry insights.