Global luxury fashion groups are restructuring wholesale channels in favor of tightly controlled direct-to-consumer (DTC) footprints to protect brand equity and capture higher margins.

Demonstrating the commercial viability of this model, Ermenegildo Zegna Group reported a 9.3 per cent rise in organic revenue to €987.3 million ($1.12 billion) in H1, FY26, with Q2 top-line expansion increasing by 11 per cent to €517.1 million. DTC revenue increased by 17.3 per cent organically during Q2 to reach €410.9 million, accounting for 86 per cent of total branded sales. Regional demand accelerated across key overseas hubs, led by a 21.8 per cent organic growth in the Americas and a stabilized 8.6 per cent organic recovery in Greater China.

Pruning wholesale operations to deepen experiential engagement

The intentional contraction of wholesale order books - down 9.5 per cent organically across the group's branded product lines in Q2 - reflects a strategic transition toward boutique activations and client-centric flagship models. Mainstay label Zegna achieved a 16.5 per cent organic sales gain to €324.3 million in Q2, while Thom Browne and Tom Ford Fashion delivered positive DTC growth that offset deliberate wholesale rationalization. This performance reflects the strength of our customer-centric model, with direct-to-consumer revenue growing organically by 17% in the quarter and all brands delivering double-digit growth, states Ermenegildo ‘Gildo’ Zegna, Executive Chairman, Ermenegildo Zegna Group.

Focusing on vertical integration and market expansion

Ermenegildo Zegna Group is an Italian luxury fashion house specializing in menswear, high-end tailoring, and technical fabrics. Operating 346 directly managed boutiques across the Zegna and Thom Browne portfolios, the group focuses on global market expansion and vertical integration. Founded in 1910 in Trivero, Italy, the NYSE-listed conglomerate maintains strong financial stability with sustained mid-single-digit sales momentum.