Zegna flags Middle East war risk, says luxury demand outlook clouded despite resilience in US, China, Europe

Italian fashion house Ermenegildo Zegna cautioned that the war in the Middle East has reduced visibility on luxury demand, while China, the US and Europe were holding up.

"It's hard to predict exactly what the situation will be in Middle East," Executive Chairman Gildo Zegna said in an interview on Friday as the company reported full-year results.

The three week-old war has increased uncertainty about the global economic outlook this year, the company said in a statement. That said, direct sales to consumers in the first quarter are tracking higher than the fourth quarter of 2025, the chairman said.


Zegna, which didn't give specifics on 2026, said it's focused on reaching its 2027 targets - which could be adjusted depending on the length of the conflict.

"The situation is in constant development, and the potential impact for the group and for the broader luxury sector remains uncertain," the company said.