Is Zegna’s Flat 2025 Revenue Testing the Growth Story Behind Ermenegildo Zegna (ZGN)?

• Ermenegildo Zegna N.V. recently released its unaudited results for the fourth quarter and full year 2025, reporting quarterly revenues of €591,028,000 and full-year revenues of €1.92 billion, both broadly in line with the prior year.
• The slight full-year revenue slip alongside a stable fourth quarter gives investors a clearer view of how the group is holding demand across brands and regions during 2025.
• We’ll now examine how the essentially flat 2025 revenue performance interacts with Zegna’s existing growth-focused investment narrative and expectations.

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Ermenegildo Zegna Investment Narrative Recap

To own Zegna, you need to believe in its ability to build a multi brand luxury platform around ZEGNA, Thom Browne and TOM FORD while lifting margins through direct to consumer. The essentially flat 2025 revenue print suggests the key near term catalyst remains execution on this shift rather than top line acceleration, while the biggest immediate risk is that weaker regions or channels, such as Greater China or Thom Browne wholesale, fail to offset rising cost investment.

Recent leadership changes, including the appointment of a new Group CEO and CFO effective January 2026, look most relevant here as they frame who is accountable for translating the current steady revenue base into improved profitability and more balanced growth across brands and regions. How effectively this new team manages higher SG&A and the wholesale to DTC transition will likely shape how investors interpret the latest flat revenue outcomes over the next few reporting periods.

Yet while revenues held broadly steady in 2025, investors should still be aware of how rising SG&A could pressure margins if...

Read the full narrative on Ermenegildo Zegna (it's free!)

Ermenegildo Zegna's narrative projects €2.2 billion revenue and €127.2 million earnings by 2028. This requires 3.4% yearly revenue growth and about a €50.1 million earnings increase from €77.1 million today.

Uncover how Ermenegildo Zegna's forecasts yield a $11.55 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community fair value estimates for Zegna span from US$5.28 to US$11.55 per share, underscoring how far private views can diverge. You can weigh those opinions against the current concern that higher SG&A and continued investment may compress margins if revenue does not grow meaningfully, and decide which scenarios you see as most realistic for the business over time.

Explore 2 other fair value estimates on Ermenegildo Zegna - why the stock might be worth as much as 7% more than the current price!

Build Your Own Ermenegildo Zegna Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Ermenegildo Zegna research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free Ermenegildo Zegna research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ermenegildo Zegna's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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