Ermenegildo Zegna N.V.
- Open
- 13.40
- Day high
- 13.51
- Day low
- 13.16
- Prev close
- 13.58
- Volume
- 40K
- Mkt cap
- $3.5B
- P/E (TTM)
- 17.0
- EPS (TTM)
- $0.78
- P/B
- 3.0
- P/S
- 0.8
- Yield
- 1.04%
- Per share
- $0.14
Ermenegildo Zegna N.V. (ZGN) is a Consumer Cyclical company listed on NYSE. The stock is up 63% over the past year.
Ermenegildo Zegna N.V. (ZGN) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ZGN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Mar 20, 2026 | $0.26 | $0.28 | +8.4% | $1.2B | -0.4% |
| Sep 5, 2025 | $0.12 | $0.20 | +68.5% | $1.1B | -0.2% |
| Jun 26, 2025 | $0.15 | $0.21 | +40.6% | $1.0B | +11.2% |
| Sep 18, 2024 | $0.18 | $0.11 | -41.5% | $1.0B | +5.6% |
| Sep 15, 2023 | $0.22 | $0.20 | -6.6% | $985M | +0.0% |
| Oct 27, 2022 | $0.12 | $0.06 | -46.7% | $763M | +2.1% |
| Jun 7, 2022 | — | $-0.91 | — | $784M | +0.2% |
ZGN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 11, 2026 | Zegna di Monte Rubello Angeloofficer: Co-CEO of the ZEGNA brand | Sell | 1,935 | $13.12 |
| May 11, 2026 | Sartori Alessandroofficer: Artistic Director | Option | 31,500 | — |
| May 11, 2026 | Sartori Alessandroofficer: Artistic Director | Sell | 6,505 | $13.12 |
| May 11, 2026 | Santhia Gian Francoofficer: Group Chief Financial Officer | Option | 15,600 | — |
| May 11, 2026 | Santhia Gian Francoofficer: Group Chief Financial Officer | Sell | 5,768 | $13.12 |
| May 11, 2026 | Zegna di Monte Rubello Edoardoofficer: Co-CEO of the ZEGNA brand | Option | 31,500 | — |
| May 11, 2026 | Zegna di Monte Rubello Edoardoofficer: Co-CEO of the ZEGNA brand | Sell | 17,037 | $13.12 |
| May 11, 2026 | Tagliabue Gianluca Ambrogioofficer: Acting Group CEO | Buy | 47,250 | — |
| May 11, 2026 | Tagliabue Gianluca Ambrogioofficer: Acting Group CEO | Sell | 19,105 | $13.12 |
| May 11, 2026 | Tagliabue Gianluca Ambrogioofficer: Acting Group CEO | Option | 47,250 | — |
| May 11, 2026 | Zegna di Monte Rubello Angeloofficer: Co-CEO of the ZEGNA brand | Option | 15,600 | — |
| May 7, 2026 | Norsa Micheledirector | Sell | 4,000 | $11.87 |
Source: ZGN SEC Form 4 filings, latest May 11, 2026. For informational purposes only — not investment advice.
See the full ZGN insider & 13F page →Ermenegildo Zegna N.V. company profile
Overview
Ermenegildo Zegna N.V. (NYSE:ZGN) is an Italian luxury fashion house founded in 1910 by Ermenegildo Zegna in Trivero, Italy. The company went public in December 2021 following a merger with a special purpose acquisition company (SPAC). Over more than a century, Zegna has evolved from a textile manufacturer into a global luxury conglomerate operating multiple prestigious brands. Today, the company operates as a holding company for several luxury fashion brands, with its flagship Zegna brand representing Italian craftsmanship in men's luxury clothing, complemented by the avant-garde Thom Browne brand and the recently acquired TOM FORD FASHION division.
Business
Ermenegildo Zegna operates in the luxury fashion industry, specifically focusing on high-end menswear, accessories, and related luxury goods. The luxury fashion industry is characterized by premium pricing, exclusive distribution, superior craftsmanship, and strong brand heritage that commands significant customer loyalty and pricing power. The company operates through four main business segments: 1. **Zegna Segment** (approximately 62% of revenue): This includes the flagship Zegna brand, which produces luxury menswear including formal suits, tuxedos, blazers, shirts, overcoats, and luxury leisurewear. The segment also encompasses the company's textile division, which manufactures high-quality fabrics, and third-party brand partnerships. The Zegna brand is positioned as the epitome of Italian luxury menswear, emphasizing superior fabrics, impeccable tailoring, and personalized service including made-to-measure offerings. 2. **Thom Browne Segment** (approximately 18% of revenue): This avant-garde fashion brand, known for its distinctive shrunken silhouettes and preppy-meets-subversive aesthetic, offers luxury menswear, womenswear, and childrenswear. Thom Browne has cultivated a unique brand identity that appeals to fashion-forward consumers seeking distinctive, statement-making pieces. Women's wear now represents about 30% of Thom Browne's revenues. 3. **TOM FORD FASHION Segment** (approximately 11% of revenue): Acquired in 2023, this segment represents the ready-to-wear and accessories business of the TOM FORD brand, known for its sleek, modern luxury aesthetic. The brand focuses on both menswear and womenswear, with particular strength in leather goods and accessories. 4. **Textile Segment** (approximately 9% of revenue): This division manufactures and sells high-quality fabrics to third-party customers, leveraging Zegna's century-long expertise in textile production. However, this segment has been experiencing significant decline, with 30% negative organic growth in recent periods. The company also offers licensed products including eyewear, jewelry, watches, underwear, and fragrances manufactured by third parties under licensing agreements.
Revenue model
Ermenegildo Zegna generates revenue primarily through direct product sales across multiple channels and business models: **Revenue Streams:** 1. **Direct-to-Consumer (DTC) Sales**: The company operates its own retail stores globally and e-commerce platforms, which provide higher margins and better customer relationship management. This channel has been a key growth driver, particularly for the Zegna brand which saw 9% organic growth in DTC in Q4 2024. 2. **Wholesale Distribution**: Products are sold to third-party retailers and department stores worldwide, though the company has been strategically rationalizing this channel to focus more on DTC growth. 3. **Textile Sales**: The textile division sells fabrics to external customers, though this segment has been declining significantly. 4. **Licensing Revenue**: Income from licensing the brands' names for products like eyewear, fragrances, and other accessories. **Customer Base**: The company primarily serves affluent consumers seeking luxury fashion, with a particular focus on high-net-worth individuals. Notably, the top 5% of Zegna brand clients represent 40% of brand revenues, highlighting the importance of ultra-high-end customers. The customer base spans globally but with particular strength in the Americas, Europe, and Asia-Pacific regions. **Margin Influencing Factors:** Factors that could increase margins include: successful brand positioning and pricing power, growth in higher-margin DTC channels, operational efficiency improvements, and successful integration of acquired brands like TOM FORD FASHION. The company's focus on personalization and exclusive experiences for top-tier customers also supports premium pricing. Factors that could pressure margins include: economic downturns affecting luxury spending, increased competition in luxury fashion, supply chain cost inflation, heavy marketing investments required for brand building, and challenges in key markets like China where luxury consumption has been volatile. The company has also been investing heavily in new creative talent, store renovations, and brand development, which impacts near-term profitability.
Competitive moat
Ermenegildo Zegna's competitive moat is moderately strong, built primarily on brand heritage and vertical integration, though it faces meaningful competitive pressures in the luxury fashion space. **Strengths of the Moat:** The company's primary competitive advantage lies in its **brand heritage and craftsmanship legacy**, with over 110 years of history in luxury menswear and textile production. The Zegna brand has established itself as synonymous with Italian luxury and superior tailoring, creating significant customer loyalty among high-net-worth individuals. The company's **vertical integration** from textile production to retail provides quality control and supply chain advantages that many competitors lack. The **customer relationship management** and personalization capabilities represent another defensive element, particularly evident in the concentration of revenue among top-tier clients. The company's focus on creating exclusive experiences and maintaining long-term relationships with affluent customers creates switching costs and loyalty. **Competitive Vulnerabilities:** However, the luxury fashion industry is highly competitive with numerous established players including Hermès, LVMH brands, Kering brands, and other luxury fashion houses. The industry is also subject to **fashion cycle risks** where consumer preferences can shift, potentially impacting brand relevance. The company's heavy dependence on the Chinese market, which has shown volatility, represents a geographic concentration risk. The **creative talent dependency** is another vulnerability, as evidenced by the company's need to appoint new creative directors for TOM FORD FASHION and manage brand transitions. Additionally, the luxury fashion industry faces potential disruption from changing consumer behaviors, particularly among younger demographics who may prefer different luxury experiences or sustainable fashion alternatives. Overall, while Zegna has built a respectable position in luxury menswear, its moat is not impregnable and requires continued investment in brand building, innovation, and customer experience to maintain competitive positioning.
Risks & safety
**Overall Assessment**: Moderate financial safety with adequate liquidity but elevated debt levels and valuation concerns. **Liquidity and Solvency:** - Cash and short-term investments: €237 million as of Q4 2024 - Current ratio: 1.41, indicating adequate short-term liquidity - Free cash flow: €166 million for FY 2024, demonstrating positive cash generation - Debt-to-equity ratio: 1.13, representing moderately high leverage - Operating cash flow: €302 million for FY 2024, showing healthy operational cash generation **Valuation Metrics:** - P/E ratio: 26.0 (FY 2024), suggesting premium valuation - EV/EBITDA: 6.9, relatively reasonable for luxury brand - Price-to-book ratio: 2.19, moderate premium to book value - Graham number: 5.01, with current price of $7.76 below this conservative valuation metric **Other Considerations:** - Revenue growth has been modest with some segments declining (Textile segment -30%, Thom Browne -27% in 2024) - EBITDA margins around 21% indicate healthy profitability - Geographic concentration risk in China market - Integration costs and investments in TOM FORD FASHION affecting near-term profitability
Recent development
Over the past few years, Ermenegildo Zegna has undergone significant strategic transformation and expansion: **Major Acquisition**: The most significant development was the acquisition of TOM FORD FASHION in 2023, adding a third major luxury brand to the portfolio. The company appointed Haider Ackermann as the new creative director and has been investing heavily in brand development, with expectations for meaningful progress in the second half of 2025 following the launch of new collections. **Brand Positioning Strategy**: Zegna has implemented a "One Brand" strategy globally, streamlining its brand identity and focusing on personalization and exclusive customer experiences. The company has launched signature collections like SECONDSKIN and Vellus Aureum, while organizing exclusive VILLA ZEGNA events in key markets like New York and Shanghai to strengthen relationships with high-value customers. **Channel Strategy Evolution**: The company has been strategically rationalizing its wholesale business while expanding direct-to-consumer channels. This includes opening new flagship stores and smaller format Salotto Zegna concepts, particularly in key markets. For Thom Browne, the company is focusing on DTC transformation with planned store openings in New York and Los Angeles. **Geographic Rebalancing**: Facing challenges in the Chinese market, Zegna has been diversifying geographically with strong growth in the Americas (+15% organic growth in Q4 2024) and Europe (+5% organic growth), while taking a more cautious approach in Greater China where it's considering store consolidation and smaller format locations. **Operational Investments**: The company has been investing in manufacturing capabilities with plans for a new shoe and leather accessory plant in Parma, Italy, and continuing to strengthen its textile production platform called "Filiera." These investments support the company's vertical integration strategy and "Made in Italy" positioning.
ZGN company profile · for informational purposes only — not investment advice.
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