Australian fashion label Zimmermann has reported a 14.4 per cent uplift in sales as its profit swings to positive in FY26.
This is according to the company’s ASIC filings released this week, which show total sales hit $738.7 million and net profit surging to $38.2 million after a $2.7 million loss in FY25.
Within the sales uplift, much of this came via Zimmermann’s owned retail stores, with the segment seeing a 26 per cent surge to $434.6 million. Digital – the brand’s smallest segment by sales – also rose, lifting 11 per cent to $93.2 million.
However, the business saw a 2.7 per cent drop in its wholesale arm, hitting $210.9 million, and dropping from 34 per cent to 29 per cent of total revenue. Zimmermann’s external trade receivables roughly halved, from $32.6 million to $16.4 million.
Zimmermann’s spend on raw materials and consumables, including changes in inventories, fell 19.5 per cent to $174.9 million, down from $217.3 million the previous year. The decline came even as group revenue rose. The line item was equivalent to 23.7 per cent of revenue, down from 33.6 per cent in FY25.
That points to a significantly stronger gross margin, though the report doesn’t disclose a gross margin figure.
Based on Ragtrader calculations, Zimmermann’s gross product margin rose to 76.3 per cent, up from 66.4 per cent, as materials and inventory costs fell while revenue grew.
Amid the sales boom, the luxury fashion label’s marketing spend surged by 40 per cent, lifting from $37.5 million in FY25 to $52.3 million in FY26. Employee costs rose 20 per cent to $182 million, and headcount is 1,523. In its FY25 report, employee numbers as of June 30, 2025 were 1,305.
Zimmermann also added new subsidiaries in Japan, Canada and Qatar during the year, alongside a Swiss management services company. None of the three new markets had a boutique listed on Zimmermann’s store directory at the time of writing.
The luxury label operates 107 boutiques globally, including 19 across Australia, 49 across Asia, the Middle East and Europe, and 39 across North America. Recent retail expansion included a run of openings in Asia, with the brand opening its first Hong Kong boutique in early FY27 as it entered a new era under recently appointed CEO Roberto Eggs. That opening followed launches in Beijing, Shanghai, Chengdu and Bangkok over the past two years.
The group spent $67.2 million on property, plant and equipment during the year, including $53.3 million on leasehold improvements, and added $91.3 million in new right-of-use assets, which largely reflect new store leases.
Lease liabilities rose 13.9 per cent to $304.5 million, while depreciation on leased assets climbed 28.3 per cent to $52.7 million.
Zimmermann ended FY26 with cash and cash equivalents of $110.3 million, up from $98.3 million in FY25.