Italy's Zegna FY prelim revenue slightly beats estimates

Overview

• Italy luxury menswear firm's FY 2025 revenue slightly beat analyst expectations

• Q4 revenue grew 0.3% YoY, driven by strong DTC performance

• Company announced new leadership structure effective January 2026

Outlook

• Company emphasizes strategic focus on DTC channel for future growth

• Ermenegildo Zegna plans to move forward with prudence amid volatile environment

Result Drivers

• DTC GROWTH - Q4 2025 revenues driven by strong performance in Direct-to-Consumer channel, with ZEGNA brand showing significant acceleration

• REGIONAL PERFORMANCE - Strong revenue growth in the Americas and EMEA regions, supporting overall Q4 results

• WHOLESALE DECLINE - Wholesale revenues decreased, reflecting the Group’s focus on DTC channel

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy"

• Wall Street's median 12-month price target for Ermenegildo Zegna NV is $11.70, about 34.6% above its January 30 closing price of $8.69

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBwb7b9Kva

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)