Ermenegildo Zegna (ZGN)
NYSE:ZGN
Want to see ZGN full AI Analyst Report?
Earnings Data
Report Date
Aug 21, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.17Last Year’s EPS
0.2Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a generally positive financial and operational picture: improved gross margin (+90 bps), higher DTC mix (82% vs 78%), stronger reported profit (+20% to EUR 109.5m), materially improved cash generation (free cash flow EUR 82m) and a net cash surplus (EUR 52m). These positives are balanced against meaningful near-term challenges: SG&A deleverage, continued wholesale streamlining (notably at Thom Browne), a Tom Ford H1 loss (improved in H2), FX headwinds (~2ppt on revenues) and uncertainty from the Middle East conflict. Management reiterated a cautious 2026 posture (profitability broadly sideline) while outlining multi-year plans to restore double-digit margins at the growth brands and to invest for long-term value.Company Guidance
Stable Full-Year Revenue with Organic Growth
Full-year revenues of EUR 1.917 billion: reported decline of -1.5% YoY but organic growth of +1.1% YoY, indicating underlying positive momentum when currency and timing effects are excluded.
Strong Gross Margin Expansion
Group gross margin improved by 90 basis points to 67.5%, driven mainly by channel mix (DTC now 82% of branded revenues vs 78% a year ago) and higher-margin DTC sales.
Solid Adjusted EBIT and Profitability
Adjusted group EBIT of EUR 163 million (EUR 173 million excluding EUR 10 million Saks-related provision). Zegna segment adjusted EBIT EUR 197 million with margin 14.4% (would be EUR 200 million / 14.7% excluding EUR 3 million provision). Group reported profit rose to EUR 109.5 million, up +20% YoY (from EUR 90.9 million).
Material Cash Flow and Balance Sheet Improvement
Free cash flow of EUR 82 million vs EUR 10 million prior year. Combined with EUR 107 million proceeds from sale of treasury shares to Temasek, the group moved from net financial indebtedness of EUR 94 million (end 2024) to a net cash surplus of EUR 52 million (end 2025).
Working Capital and Inventory Efficiency
Trade working capital improved to EUR 408 million (21.3% of revenues) from EUR 460 million (23.6% of revenues), reflecting better inventory management, trade receivables control and FX effects (improvement of ~230 bps as % of revenues).
Disciplined Marketing and Investment Spend
Marketing expenses held steady at EUR 121 million (6.3% of revenues), in line with prior year and management guidance for mid-term marketing around 6% of revenues, while capex was EUR 103 million (5.4% of revenues) with planned increase toward ~7% in 2026 to complete shoe factory and IT investments.
Successful Product & Brand Initiatives
Tom Ford Fashion and Zegna creative initiatives (Tom Ford show, Zegna 'The Family Closet', new fragrance 'memory') plus Thom Browne x ASICS sneaker launch (Mar 2) delivered strong social visibility and revenue results ahead of expectations and are expected to aid customer acquisition and retention.
Clear Path for Mid/Long-Term Brand Profitability
Management reiterated roadmap for Thom Browne and Tom Ford to reach double-digit EBIT margins over time, and flagged improved H2 performance for Tom Ford (loss in H1, positive in H2) as evidence of operational inflection.
Dividend Proposal
Board proposed dividend distribution of EUR 0.12 per ordinary share (approx. EUR 32 million), reflecting confidence in cash generation and capital allocation discipline.
ZGN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ZGN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 20, 2026 | $9.25 | $9.68 | +4.65% |
Sep 05, 2025 | $8.72 | $9.02 | +3.44% |
Mar 27, 2025 | $6.97 | $7.64 | +9.61% |
Sep 18, 2024 | $9.60 | $8.68 | -9.58% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Ermenegildo Zegna (ZGN) report earnings?
Ermenegildo Zegna (ZGN) is schdueled to report earning on Aug 21, 2026, After Close (Confirmed).
What is Ermenegildo Zegna (ZGN) earnings time?
Ermenegildo Zegna (ZGN) earnings time is at Aug 21, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ZGN EPS forecast?
ZGN EPS forecast for the fiscal quarter 2026 (Q2) is 0.17.