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Ermenegildo Zegna Reports Q1 2025 Revenue Decline Amid Strategic Shift

Story Highlights

An update from Ermenegildo Zegna ( (ZGN) ) is now available.

Ermenegildo Zegna reported a slight decline in Q1 2025 revenues to €458.8 million, down 0.9% YoY, despite strong direct-to-consumer performance across its brands. The company’s strategic shift from wholesale to direct sales, especially in the Americas, contributed to growth in the ZEGNA and Tom Ford Fashion brands, while Thom Browne’s revenues were impacted by the streamlining of its wholesale channel. The overall positive momentum in direct sales reflects the company’s focus on brand strength and customer engagement amid economic uncertainties.

Spark’s Take on ZGN Stock

According to Spark, TipRanks’ AI Analyst, ZGN is a Neutral.

Ermenegildo Zegna’s stock reflects a mix of robust revenue growth and strategic investments, countered by concerns over profitability and leverage. The technical indicators suggest a bearish trend, while valuation metrics indicate a slight overvaluation. Earnings call insights reveal strategic positioning and regional strengths, though challenges persist in some segments and regions. Overall, Zegna’s strategic initiatives and growth prospects are promising, but financial and market challenges warrant a cautious approach.

To see Spark’s full report on ZGN stock, click here.

More about Ermenegildo Zegna

Ermenegildo Zegna is a prominent player in the luxury fashion industry, known for its high-end menswear, textiles, and accessories. The company operates multiple brands, including ZEGNA, Thom Browne, and Tom Ford Fashion, with a strategic focus on direct-to-consumer sales channels.

YTD Price Performance: -7.12%

Average Trading Volume: 811,996

Technical Sentiment Signal: Buy

Current Market Cap: $2.9B

For detailed information about ZGN stock, go to TipRanks’ Stock Analysis page.

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