Zegna Q2 2026 Earnings Call: H1 EBIT Rises, Brand Turnaround Guidance
Source Tradingkey
Key Takeaways
- First-half 2026 adjusted EBIT increased to slightly above EUR 74 million from EUR 69 million, lifting the margin to 7.5%.
- Gross profit reached EUR 668 million, representing 67.6% of revenue. A higher direct-to-consumer mix supported profitability, while foreign exchange movements reduced top-line growth by 3 percentage points.
- The Zegna segment generated EUR 107 million of adjusted EBIT at a 14.8% margin, up 50 basis points year over year. Management expects a full-year margin of around 15%.
- Thom Browne posted an EUR 8 million adjusted EBIT loss, versus EUR 4 million of profit a year earlier. Management expects positive adjusted EBIT in the second half and a near-breakeven full-year result.
- Tom Ford Fashion reduced its adjusted EBIT loss to EUR 12 million from EUR 19 million. Management expects second-half profitability and a full-year loss of only a few million euros.
- Free cash flow improved to EUR 19 million from an outflow of EUR 23 million, while net cash rose to EUR 60 million at June 30 from EUR 52 million at the end of 2025.
Core Financial Data
| Metric | H1 2026 | H1 2025 / Comparison | Commentary |
|---|---|---|---|
| Gross profit | EUR 668 million | — | Margin of 67.6%; supported by DTC mix and partly offset by FX |
| SG&A expenses | EUR 531 million | — | 53.8% of revenue; incidence declined slightly |
| Marketing expenses | EUR 68 million | — | Stable at 6.9% of revenue |
| Adjusted EBIT | Slightly above EUR 74 million | EUR 69 million | Margin reached 7.5% |
| Zegna segment adjusted EBIT | EUR 107 million | — | Margin rose to 14.8% from 14.3% |
| Thom Browne adjusted EBIT | EUR (8) million | EUR 4 million | Affected by FX, reserves and transition investments |
| Tom Ford Fashion adjusted EBIT | EUR (12) million | EUR (19) million | Improved through revenue growth and cost discipline |
| Profit | EUR 28 million | EUR 48 million | Prior year included a put-option remeasurement benefit |
| Effective tax rate | 39% | 30% | Influenced by the prior-year nontaxable income comparison |
| Capital expenditure | EUR 64 million | EUR 54 million | Increase mainly related to production investments |
| Trade working capital | EUR 420 million | EUR 442 million | Lower receivables following wholesale streamlining |
| Free cash flow | EUR 19 million | EUR (23) million | Higher EBIT and improved working capital |
| Net cash | EUR 60 million | EUR 52 million at Dec. 2025 | Increased during the first half |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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