Ermenegildo Zegna Group Reports Full Year 2025 Profit of €109 Million, up 20% YoY, With a Cash Surplus of €52 Million

Revenues of €1,916.9 million vs €1,946.6 million in FY 2024 (-1.5% YoY and +1.1% organic1) Profit of €109.5 million, compared to €90.9 million in FY 2024 (+20% YoY) Gross profit margin of 67.5%, up 90 bps from 66.6% in FY 2024 Adjusted EBIT1 of €163.0 million, including €10 million provision for expected losses on trade receivables related to Saks Global Chapter 11 filing. €173.0 million before the impact of the Saks Global Chapter 11 filing. Cash surplus of €52 million at December 31, 2025, compared to a net financial indebtedness of €94 million at December 31, 2024 Proposed dividend per ordinary share of €0.12 MILAN--(BUSINESS WIRE)--Ermenegildo Zegna N.V. (NYSE:ZGN) (the “Company” and, together with its consolidated subsidiaries, the “Ermenegildo Zegna Group” or “the Group”) today announced Profit of €109.5 million for FY 2025, up 20% year-on-year (YoY), compared to €90.9 million in FY 2024. Adjusted EBIT for FY 2025 was €163.0 million (€173.0 million before a €10 million provision for expected losses on trade receivables related to Saks Global), compared to €184.0 million in FY 2024. Ermenegildo “Gildo” Zegna, Executive Chairman of the Ermenegildo Zegna Group, commented: “In 2025 our Group delivered solid revenue and net profit growth despite a continued challenging environment for the sector. Group revenues reached €1.9 billion, +1.1% organic, which translated to a Profit of €109 million, up 20% compared to last year. We also closed the year with a Cash Surplus of €52 million, further strengthening our Group’s financial flexibility. Looking ahead, recent developments in the Middle East have introduced additional uncertainty across the sector. In this more complex environment, our priorities remain clear: disciplined growth, strong cash generation, and rigorous execution to deliver on our targets. While we remain vigilant to potential risks, our ambitions are unchanged—and so is our determination to deliver on them, together.” Results of Operations For the years ended December 31, (€ thousands, except percentages) 2025 Percentage of revenues 2024 Percentage of revenues Revenues 1,916,947 100.0 % 1,946,647 100.0 % Cost of sales (622,910 ) (32.5 %) (650,087 ) (33.4 %) Gross profit 1,294,037 67.5 % 1,296,560 66.6 % Selling, general and administrative expenses (1,033,871 ) (53.9 %) (1,008,324 ) (51.8 %) Marketing expenses (120,686 ) (6.3 %) (121,384 ) (6.2 %) Operating profit 139,480 7.3 % 166,852 8.6 % Financial income 41,509 2.2 % 26,028 1.3 % Financial expenses (50,471 ) (2.7 %) (51,995 ) (2.7 %) Foreign exchange gains/(losses) 9,000 0.5 % (11,338 ) (0.6 %) Result from investments accounted for using the equity method 524 0.0 % 1,061 0.1 % Profit before taxes 140,042 7.3 % 130,608 6.7 % Income taxes (30,555 ) (1.6 %) (39,747 ) (2.0 %) Profit 109,487 5.7 % 90,861 4.7 % Fiscal Year 2025 Key Financial Highlights Revenues In FY 2025 the Group recorded revenues of €1,916.9 million (-1.5% YoY and +1.1% organic). The ZEGNA brand recorded revenues of €1,181.6 million (+1.5% YoY and +4.7% organic). Thom Browne reported revenues of €268.5 million (-14.7% YoY and -12.2% organic). TOM FORD FASHION recorded revenues of €317.1 million (+0.8% YoY and +3.1% organic). Textile revenues were €134.2 million (-2.8% YoY and -3.1% organic) and Other revenues were €15.6 million (+0.4% YoY and +0.8% organic). Full details of the Group’s revenues are included in the Annual Report on Form 20-F for the year ended December 31, 2025, which is going to be filed with the U.S. Securities and Exchange Commission today. Gross Profit, Operating Profit and Profit Gross profit in FY 2025 reached €1,294.0 million, from €1,296.6 million in FY 2024, with a gross profit margin of 67.5%, compared to 66.6% in FY 2024. This increase was mainly driven by channel mix, with direct-to-consumer (“DTC”) rising to 82% of total branded products revenues in FY 2025 (up from 78% in FY 2024). Selling, general, and administrative (SG&A) expenses were €1,033.9 million (53.9% of revenues) in FY 2025, compared to €1,008.3 million (51.8% of revenues) in FY 2024. The increase mainly reflects investments to support future growth, including personnel expenses, higher IT spending, and the continued development of our retail network. It also includes €10 million of provisions for expected losses on trade receivables related to Saks Global following its voluntary filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The SG&A incidence on revenues was also affected by negative operating leverage resulting from lower revenues, particularly at Thom Browne, only partially offset by actions taken to contain discretionary spending. Marketing expenses in FY 2025 were €120.7 million, compared to €121.4 million in FY 2024, with the incidence on revenues substantially flat (6.3% in FY 2025 vs. 6.2% in FY 2024) despite a higher number of activations, reflecting a more focused and efficient approach to marketing across the three brands. As a result of the above, the Group reported an operating profit of €139.5 million, compared to €166.9 million in FY 2024. The Group’s Profit in FY 2025 was €109.5 million (5.7% margin), compared to €90.9 million (4.7% margin) in FY 2024. This performance was supported by higher financial income and foreign exchange gains (€41.5 million and €9.0 million respectively), mainly due to favorable foreign exchange rates and to a lower effective tax rate (22% in FY 2025, compared to 30% in FY 2024). The decline in the Group’s effective tax rate has been driven by higher non-taxable income in FY 2025 relating to the remeasurement of the put option liabilities. Adjusted EBIT and Adjusted EBIT Margin The table below shows the reconciliation of Profit to Adjusted EBIT and the calculation of Profit Margin and Adjusted EBIT Margin for FY 2025 and 2024. Adjusted EBIT is the main performance metric used by the Group’s management at the consolidated and reporting segment level. In FY 2025, Adjusted EBIT amounted to €163.0 million, including a €10 million allowance for expected losses on trade receivables related to the Saks Global Chapter 11 filing. Excluding this impact, Adjusted EBIT would have been €173.0 million. For the years ended December 31, (€ thousands, except percentages) 2025 2024 Profit 109,487 90,861 Income taxes 30,555 39,747 Financial income (41,509 ) (26,028 ) Financial expenses 50,471 51,995 Foreign exchange (gains)/losses (9,000 ) 11,338 Result from investments accounted for using the equity method (524 ) (1,061 ) Operating profit 139,480 166,852 Adjustments: Net impairment of leased and owned stores 15,039 11,196 Severance indemnities and provisions for severance expenses 7,999 4,878 Legal costs for trademark dispute 442 1,061 Transaction costs related to acquisitions — 33 Adjusted EBIT 162,960 184,020 Revenues 1,916,947 1,946,647 Profit Margin (Profit / Revenues) 5.7 % 4.7 % Adjusted EBIT Margin (Adjusted EBIT / Revenues) 8.5 % 9.5 % Analysis by Segment For the years ended December 31, Change (€ thousands, except percentages) 2025 2024 2025 vs 2024 % Organic Revenues Zegna 1,363,177 1,348,839 14,338 1.1 % 3.7 % Thom Browne 268,899 314,818 (45,919 ) (14.6 %) (12.1 %) Tom Ford Fashion 317,056 314,514 2,542 0.8 % 3.1 % Intersegment eliminations (32,185 ) (31,524 ) (661 ) n.m.(*) n.m. Total revenues 1,916,947 1,946,647 (29,700 ) (1.5 %) 1.1 % _________________________ (*) Throughout this section “n.m.” means not meaningful. Intersegment eliminations include revenues from products that the Textile and Other product lines (included in the Zegna segment) sell to the Group’s brands. For the years ended December 31, Change (€ thousands, except percentages) 2025 2024 2025 vs 2024 % Adjusted EBIT Zegna 196,708 187,598 9,110 4.9 % Thom Browne 952 27,319 (26,367 ) (96.5 %) Tom Ford Fashion (15,539 ) (10,116 ) (5,423 ) (53.6 %) Corporate (19,044 ) (19,977 ) 933 4.7 % Intersegment eliminations (117 ) (804 ) 687 85.4 % Total Adjusted EBIT 162,960 184,020 (21,060 ) (11.4 %) Adjusted EBIT Margin Zegna 14.4 % 13.9 % Thom Browne 0.4 % 8.7 % Tom Ford Fashion (4.9 %) (3.2 %) Total Adjusted EBIT Margin 8.5 % 9.5 % Zegna segment In FY 2025, the Zegna segment (which includes the ZEGNA brand, Textile and Other) generated revenues of €1,363.2 million2 (+1.1% YoY and +3.7% organic). Adjusted EBIT for the Zegna segment was €196.7 million in FY 2025, including €3 million of provisions related to Saks Global, with an Adjusted EBIT Margin of 14.4% compared to 13.9% in FY 2024. The increase in Adjusted EBIT Margin was driven by a favorable channel mix coupled with solid revenue growth and continued cost control actions. Thom Browne segment In FY 2025, the Thom Browne segment generated revenues of €268.9 million2 (-14.6% YoY and -12.1% organic). Adjusted EBIT was €952 thousand, including a €2 million provisions related to Saks Global, with an Adjusted EBIT margin of 0.4% compared to 8.7% in FY 2024. The decrease was driven by a decline in revenues, as the wholesale channel streamlining caused a 40% decrease in revenues from the channel, and by investments for the opening of selected new stores as part of our strategic decision to reduce exposure to wholesale while strengthening direct control of retail, only partially offset by discretionary cost control actions. Tom Ford Fashion segment In FY 2025, the Tom Ford Fashion (“TFF”) segment generated revenues of €317.1 million2 (+0.8% YoY and +3.1% organic). Adjusted EBIT was negative €15.5 million, compared to negative €10.1 million in FY 2024, and includes €5 million of provisions related to Saks Global. The operating performance mainly reflects investments made in the personnel, IT platform and DTC network to support the evolution of the business. Corporate Corporate costs amounted to €19.0 million in FY 2025 compared to €20.0 million in FY 2024. The slight decrease was mainly due to lower costs related to insurance coverage. _________________________ 1 Revenues on an organic growth basis (organic or organic growth) and on a constant currency basis (constant currency), Adjusted EBIT, Adjusted EBIT Margin, Trade Working Capital, Net Financial Indebtedness/(Cash Surplus) and Free Cash Flow are non-IFRS financial measures. See the non-IFRS financial measures section starting on page 15 of this press release for the definition and reconciliation of non-IFRS financial measures. 2 Before inter-segment eliminations Capital Expenditure, Trade Working Capital, Net Financial Indebtedness/(Cash Surplus) and Free Cash Flow Capital expenditure For the years ended December 31, (€ thousands) 2025 2024 Payments for property, plant and equipment 80,504 100,104 Payments for intangible assets 22,392 25,425 Capital expenditure 102,896 125,529 Capital expenditure as % of revenues 5.4 % 6.4 % Capital expenditure (capex) was €102.9 million in FY 2025, compared to €125.5 million in FY 2024. The 2025 capex was primarily related to our store network, which accounted for approximately 60% of total investments, as well as the investments in the new footwear production plant in Parma (Italy) and in IT initiatives. Trade Working Capital At December 31, Change (€ thousands) 2025 2024 Trade Working Capital 407,745 460,034 (52,289 ) of which trade receivables 227,087 248,790 (21,703 ) of which inventories 506,903 521,015 (14,112 ) of which trade payables and customer advances (326,245 ) (309,771 ) (16,474 ) Trade Working Capital was €407.7 million at December 31, 2025, down 11% from €460.0 million at December 31, 2024. The reduction was due to foreign currency impact, a better control of inventories and lower receivables. Net Financial Indebtedness/(Cash Surplus) At December 31, Change (€ thousands) 2025 2024 Net Financial Indebtedness/(Cash Surplus) (52,093 ) 94,225 (146,318 ) Cash Surplus was €52.09 million at December 31, 2025, compared to a Net Financial Indebtedness of €94.2 million at December 31, 2024. The change primarily reflects an improved Free Cash Flow generation and the inflow due to the sale of treasury shares to Temasek (€107.2 million). Free Cash Flow For the years ended December 31, (€ thousands) 2025 2024 Net cash flows from operating activities 335,559 279,129 Payments for property, plant and equipment (80,504 ) (100,104 ) Payments for intangible assets (22,392 ) (25,425 ) Payments for right-of-use assets (2,917 ) — Payments of lease liabilities (147,671 ) (143,549 ) Free Cash Flow 82,075 10,051 The Group continued to maintain positive cash flow generation in FY 2025, which reached €82.1 million, compared to €10.1 million in FY 2024. The increase in Free Cash Flow generation was driven by higher cash flow from operating activities and improved working capital management. *** Outlook Recent developments in the Middle East have increased uncertainty around the global economic outlook in 2026 and reduced visibility on the demand for luxury goods. The Group’s management confirms that it remains focused on delivering on its 2027 targets while acknowledging the potential risks related to the duration of the conflict and its possible impact on global growth and consumer demand. Subsequent events New leadership structure Effective January 1, 2026, Ermenegildo Zegna Group implemented previously announced changes to the leadership structure for the Group and for the ZEGNA brand. Ermenegildo “Gildo” Zegna has assumed the role of Group Executive Chairman. Gianluca Tagliabue, has assumed the role of Group Chief Executive Officer subject to shareholders’ approval at the next annual general meeting while Gian Franco Santhià has been appointed Group Chief Financial Officer. Edoardo and Angelo Zegna, members of the fourth generation of the Zegna family, have been appointed Co-CEOs of the ZEGNA brand. Saks Global On January 13, 2026, Saks Global filed for bankruptcy protection under Chapter 11 of Title 11 of the United States Code. In Q1 2026, the Group resumed shipments to Saks Global’s department stores in the U.S. for the Spring–Summer collections. Middle East On February 28, 2026, geopolitical tensions in the Middle East escalated following military actions in the region. The Group operates in certain Middle Eastern countries. The situation is in constant development, and the potential impact for the Group and for the broader luxury sector remains uncertain. Proposal of dividend distribution On March 19, 2026, the Board of Directors of the Company proposed to make a dividend distribution of €0.12 per share to holders of the Company’s ordinary shares, corresponding to a total dividend distribution of approximately €32.2 million. The dividend proposal is subject to the finalization and adoption of the annual statutory accounts of the Company (provided that the distribution is permitted under Dutch law) and to the approval of the Company’s shareholders at the 2026 annual general meeting, which is expected to be held on June 26, 2026. Financial releases Please find below the expected calendar for the next financial releases: April 30, 2026: Q1 2026 Revenues July 23, 2026: H1 2026 Preliminary Revenues September 3, 2026: H1 2026 Financial Results October 22, 2026: Q3 2026 Revenues To receive email alerts of the timing of future financial news releases, as well as future announcements, please register at https://ir.zegnagroup.com/contacts/investor-email-alerts/default.aspx. Conference CallRead the full story here

Ermenegildo Zegna Group Reports Full Year 2025 Profit of €109 Million, up 20% YoY, With a Cash Surplus of €52 Million

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