Ermenegildo Zegna N V Stock Price, News & Analysis

Ermenegildo Zegna Group (NYSE:ZGN) reported FY 2024 financial results with revenues reaching €1,946.6 million, up 2.2% year-over-year. The company achieved a profit of €90.9 million, down from €135.7 million in FY 2023, with profit margin decreasing to 4.7% from 7.1%.

Key highlights include:

• Adjusted EBIT of €184.0 million
• Gross profit margin improved to 66.6%
• Direct-to-consumer revenues reached 78% of branded products
• Proposed dividend of €0.12 per ordinary share

By segment, ZEGNA brand revenues grew 4.9% to €1,163.7 million, while Thom Browne declined 16.8% to €314.7 million. TOM FORD FASHION revenues increased 33.5% to €314.5 million. The company updated its mid-term targets for 2027, expecting revenues of €2,200-€2,400 million and Adjusted EBIT of €250-€300 million.

Ermenegildo Zegna Group reported FY 2024 revenues of €1,947 million, up 2.2% YoY, with Q4 2024 revenues reaching €589 million, a 3.3% increase YoY. The ZEGNA brand showed strong performance with 8.4% YoY growth in Q4, driven by robust Direct-to-Consumer (DTC) channel growth of 9.3% for the Group.

The Americas region outperformed with 14.6% YoY growth, while EMEA showed positive momentum. The Group's DTC channel represented 78% of branded products revenues. The store network expanded to 461 directly operated stores across all brands. However, the Greater China Region faced challenges with revenues declining 11.4% YoY in Q4.

Thom Browne segment revenues decreased 4.3% YoY in Q4, while TOM FORD FASHION grew 3.7% YoY. The company highlighted strong strategic developments, including the successful ZEGNA Winter 2025 fashion show featuring Vellus Aureum luxury wool products.

Monterubello, the controlling shareholder of Ermenegildo Zegna Group (NYSE:ZGN), has purchased 913,000 shares and plans to acquire an additional 2 million shares in the coming weeks. The company, owned by the Zegna family, currently holds 60% of ZGN's 252,416,479 outstanding ordinary shares as of October 31, 2024. Chairman and CEO Ermenegildo 'Gildo' Zegna stated that the family believes the current stock valuation doesn't reflect the company's true potential, citing market volatilities and uncertainty.

Ermenegildo Zegna Group reported revenues of €1.357 billion for the first nine months of 2024, a 1.7% YoY increase but a 4% organic decline. Q3 2024 revenues were €397 million, marking a 7.8% YoY decrease and a 6.7% organic decline. The ZEGNA brand saw a 3.4% YoY increase in 9M 2024 and a 0.9% YoY increase in Q3, driven by positive DTC performance, particularly in the Americas, EMEA, and Japan. Thom Browne and Tom Ford Fashion reported mixed results, with Thom Browne seeing a 21.7% YoY decline in 9M 2024 and Tom Ford Fashion showing a 54.4% YoY increase. The company noted challenges in the Greater China Region due to declining consumer confidence. Looking ahead, Zegna anticipates an uncertain environment but remains confident in its brand strength and management team.

Ermenegildo Zegna Group reported H1 2024 revenues of €960.1 million, up 6% from H1 2023. Profit was €31.3 million (3.3% margin) compared to €52.1 million in H1 2023. Adjusted EBIT reached €80.9 million with an 8.4% margin, down from 13.3% in H1 2023. The company made significant investments across its three brands:

- ZEGNA: Continued focus on One Brand Strategy
- Thom Browne: Reinforced organization at HQ and key regions
- TOM FORD FASHION: Appointed Haider Ackermann as new Creative Director

Despite challenging market conditions, the company remains confident in its long-term strategy. Gross profit margin improved to 66.4%, up 220bps from H1 2023, driven by increased DTC sales and better inventory management.

TOM FORD has appointed Haider Ackermann as Creative Director, effective immediately. Ackermann will lead creative efforts across all TOM FORD fashion categories, including menswear, womenswear, accessories, and eyewear. The brand is owned by The Estée Lauder Companies Inc. (NYSE:EL), with fashion licensed to Ermenegildo Zegna Group and eyewear to Marcolin SpA.

Ackermann, known for blending luxurious fabrics with impeccable tailoring, will debut his first collection at Paris Fashion Week in March 2025. He will be based in Paris, reporting to Guillaume Jesel, President and CEO of TOM FORD, and Lelio Gavazza, CEO of TOM FORD FASHION. Founder Tom Ford expressed excitement about Ackermann's appointment, praising his work and shared design sensibilities.

Ermenegildo Zegna Group reported €960.1 million in revenues for H1 2024, up 6.3% year-over-year. Key highlights:

- ZEGNA brand revenues grew 4.6% YoY to €566.1 million
- Thom Browne revenues declined 19.4% YoY to €166.7 million
- TOM FORD FASHION revenues reached €148.5 million
- Direct-to-Consumer channel drove growth, up 14.8% YoY
- Strong performance in U.S. and EMEA markets
- Greater China Region faced challenges with single-digit negative organic growth

The company remains confident in its long-term strategy despite a challenging 2024 outlook. Cost control initiatives are being implemented across the group while continuing to invest in growth opportunities for its three core brands.

Ermenegildo Zegna Group (NYSE: ZGN) announced the adoption of all resolutions presented at its annual general meeting on June 26, 2024. Key among these is the approval of a dividend distribution of EUR 0.12 per ordinary share, totaling approximately EUR 30 million. Dividends will be paid in USD, based on the June 26, 2024 exchange rate set by the European Central Bank. Important dates include the ex-date and dividend record date on July 5, 2024, and the payment date on July 30, 2024. Further details on the exchange rate and dividend taxation will be accessible from June 28, 2024, on the company's investor relations website.

Ermenegildo Zegna Group (NYSE: ZGN) has released the convocation notice for its 2024 Annual General Meeting (AGM), scheduled for June 26, 2024, at the Steigenberger Airport Hotel in Amsterdam. The meeting materials, including the 2023 statutory audited financial statements, are accessible on the company's website. The Board of Directors recommends a dividend distribution of €0.12 per share, totaling approximately €30 million, subject to shareholder approval. If approved, the dividend will be paid in USD on July 30, 2024, with an ex-date of July 5, 2024. Additionally, Thom Browne has exercised his right to sell 2.05% of Thom Browne Inc. to Ermenegildo Zegna Group for around $25 million, increasing the Group's ownership to approximately 92%.