Italian luxury group Ermenegildo Zegna announced a strategic shift for China, moving from scale to quality. Following a recent leadership visit, the company revealed plans to close 10 underperforming Zegna-brand stores in phases. The move comes as Q4 2025 revenue in Greater China fell 9.9% organically to 134.7 million euros ($141.44 million), dragged down by the Thom Browne and Tom Ford brands and wholesale channels. However, Zegna’s direct retail business showed sequential improvement. Management noted ongoing market volatility in China, expecting it to continue through 2026. A bright spot was the “Chinese consumer cluster,” whose global spending declined far less than in Greater China, showing resilience abroad. While optimizing its network, Zegna will still expand in key areas.
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