MILAN – A day after revealing Temasek Holdings’ investment in the company, the Ermenegildo Zegna Group on Wednesday reported revenues of 927.7 million euros in the first half of the year. This is a 3.4 percent decrease from 960.1 million euros in the same period in 2023.  In the second quarter, revenues fell 5.7 percent to 468.9 million euros, dented by the appreciation of the euro. In organic terms, they were down 2.6 percent.

In an interview, chairman and chief executive officer Gildo Zegna said that the performance was impacted by “our choice to streamline our wholesale channel, but the decrease was offset by a strong direct-to-consumer business, up 8 percent in organic terms in the second quarter, even beyond our expectations.” Also, the Americas and the Middle East contributed to balance the ongoing slowdown and volatility  in China, he said.

To be sure, in organic terms, the Zegna and Thom Browne brands each grew by 7 percent in the DTC channel while Tom Ford Fashion was up 11 percent.

“We are not worried about the tariffs [imposed by the U.S. government], it’s a level that we can absorb,” Zegna said. “We have already made some adjustments to our prices in June.”

The main challenges he sees going forward derive from the “geopolitical situation. I am relatively serene about the rest. We have the right foundations to do quite well in the second half, barring extraordinary events, and I am certain we will grow in the medium term.”

As of Wednesday, the Singapore-based investment company Temasek holds a 10 percent stake in the Italian group, and  Zegna during the interview elaborated on the partnership. “It allows us to strengthen our organic expansion globally as a long-term partner, leveraging Temasek’s knowledge of the Asian market.”

He said the relationship with Temasek dates back years, and expressed his pride and pleasure in being chosen for the investment. “They were looking for a strong Made in Italy brand. They are well-established at a global level and this partnership gives me confidence. Temasek is customer-centric, they have experience in hospitality, in retailing with the Paragon mall, they have invested in luxury in Moncler, and they will help us expand in the Far East, which is still underdeveloped.”   

The executive added that a Salotto Zegna, reserved for Su Misura and personalization, opened in Singapore a month ago. Asked if he would plan a runway show in Singapore, after Dubai’s spring 2026 collection unveiled in June, Zegna said his namesake brand will return to Milan in January but that he would consider an event in the Asian city and that he is planning one for the Formula 1 Grand Prix there in October.

“I want to clarify that the Zegna family did not sell shares to Temasek and that there is absolutely no plan to delist” from the New York Stock Exchange, he concluded.

Sam Lobban Confirmed as New Thom Browne CEO

Zegna confirmed a WWD scoop posted earlier on Wednesday about Thom Browne CEO Rodrigo Bazan exiting the brand on Aug. 31. He will be succeeded by Sam Lobban, currently serving as executive vice president and general merchandising manager for apparel and designer at Nordstrom. Zegna praised Lobban’s “extensive background in merchandising and his customer-first mindset. This is the right choice, he is very competent and loves the brand, he has all the assets to do well.”

Lobban will be based in New York. At the same time, Zegna made a point to thank Bazan for leading Thom Browne since 2016, growing its sales threefold.

Asked about the recent declines in sales at that brand, Zegna said that the market has changed and that “we are ready with a different business model, we had grown too much with wholesale and we have strengthened the brand’s retail channel, modeling our strategy after the Zegna brand’s.”

There are 120 Thom Browne stores and Zegna admitted “there are a few too many in China, and we need to develop the accessories segment and increase business in the U.S. and Europe. I am confident we will succeed.”

Thom Browne earlier this month opened an accessories only store on Madison Avenue in Manhattan.

Sales by Brand

In the first six months ended June 30, sales of the Zegna brand inched up 0.8 percent to 570.4 million euros, while Thom Browne sales fell 22.5 percent to 129.2 million euros.

Tom Ford Fashion rose 2.8 percent to 152.7 million euros. Haider Ackermann debuted his first collection as creative director of Tom Ford during Paris Fashion Week on March 5 to unveil the brand’s fall 2025 collection.

The textile segment was down 6.6 percent to 67 million euros, largely reflecting declining orders from brands outside the group.

Sales by Distribution

In the first half, group DTC revenues rose 4.2 percent to 698 million euros, representing 82 percent of the group’s branded product revenues.

Zegna’s DTC revenues grew 3.7 percent at current exchange rates to 504.5 million euros, driven by the Americas with strong double-digit growth, accelerating in the second quarter, followed by solid double-digit growth in the Europe, Middle East and Africa region, in particular in the Middle East. Performance in the DTC channel in the Greater China region in the second half remained negative and broadly in line with the first quarter.

On June 30, Zegna counted 286 directly operated stores, including an additional store in Dubai Mall (Level Shoes) and in Porto Cervo, Italy.

Thom Browne DTC revenues rose 3 percent to 92.6 million euros, driven by performance in the Americas. In the second quarter, the brand opened stores in Los Angeles Melrose, New York Madison and Tokyo Ginza.

Tom Ford Fashion DTC revenues climbed 8.4 percent to 100.9 million euros with all regions showing positive organic performance and EMEA delivering the strongest results. The brand has 66 DOS, with one net opening in the second quarter in Hong Kong Pacific Place.

In the first half, group wholesale branded revenues fell 27.1 percent to 154.2 million euros.

Zegna wholesale revenues were down 17.1 percent to 65.9 million euros, due to the conversion into retail concessions of some stores and a shift in delivery timing.

Thom Browne wholesale revenues were slashed by 52.4 percent to 36.5 million euros, as per the strategy to streamline the brand’s wholesale presence to focus on the DTC channel.

Tom Ford Fashion wholesale revenues were down 6.5 percent to 51.8 million euros,  mainly driven by some previous conversions of stores into retail concessions.

Zegna touted “a good balance of each brand by geography. In 2026, we need to continue to fine tune this in each market.” He expects volatility to continue in 2026 but believes “spaces will open globally and we can catch new opportunities,” eyeing for example openings in Paris for Tom Ford and Thom Browne.

Sales by Region

In the first half, group revenues in EMEA were down 2.3 percent to 328.9 million euros,  representing 35 percent of the total, dented by the negative results in the wholesale channel at the three brands. The chairman and CEO said that the group had not been impacted by a slowdown in tourism.

Sales in the Americas rose 6.8 percent to 262.7 million euros, accounting for 28 percent of the total, driven by the strong performance of the Zegna and Thom Browne DTC channel. Zegna cited Brazil and Mexico as strongly contributing to the performance in the Americas.

Revenues in the Greater China region decreased 16.2 percent to 223.1 million euros, representing 24 percent of the total. The performance was still impacted by a subdued consumer environment in the region. “This has become the new norm, we have to become more equipped to manage it,” said Zegna. “China for the Zegna brand remains the most important market followed by the U.S. and we continue to believe in it, investing in a careful way.”

Sales in the rest of Asia Pacific were up 1.4 percent to 111.5 million euros, accounting for 12 percent of the total, reporting a demanding base of comparison in Japan for the whole sector and a more subdued consumer confidence in Korea.