| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 72 | 27.9x | 17.8x | Top tier | |
Growth | 54 | -1.5% | 7.1% | Around median | |
Quality | 80 | — | 4.5% | Top tier | |
Safety | 50 | 2.4x | 2.6x | Around median | |
Capital Return | 26 | 1.18% | 2.12% | Bottom tier | |
Momentum | 64 | 89.9% | 2.9% | Around median | |
Sentiment | 62 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Ermenegildo Zegna N.V. operates a luxury fashion group comprising the Zegna, Thom Browne, and TOM FORD Fashion segments. The Zegna segment includes the eponymous brand, the textile division, and third-party brand operations, while the group is increasing direct-to-consumer sales and reducing its reliance on wholesale; in the first half of fiscal 2026, the DTC channel accounted for 86% of the group’s branded revenues, compared with 82% in the corresponding period, and carries a higher gross margin than wholesale.
In the first half of fiscal 2026, revenues totaled €987 million, and gross profit was €668 million at a margin of 67.6%. Adjusted earnings before interest and taxes increased to approximately €74.5 million from €68.7 million, with the margin reaching 7.5%, while selling, general, and administrative expenses declined as a percentage of revenues to 53.8%, and marketing spending totaled €68 million, or 6.9% of revenues.
Profitability varied markedly across segments in the first half of fiscal 2026: the Zegna segment generated adjusted earnings before interest and taxes of €107 million at a margin of 14.8%, compared with 14.3% in the corresponding period, while Thom Browne recorded a loss of €8 million after a profit of €4 million, and TOM FORD Fashion narrowed its loss to €12 million from €19 million. At the group level, net profit declined to €28.4 million from €47.9 million, with part of the comparison related to €28 million of non-cash, non-taxable income recorded in the first half of fiscal 2025 as a result of remeasuring the Thom Browne put option liability.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $13.57, within a range of $12.20 to $14.50, and the consensus recommendation is “Buy”; the average target is below the 52-week range high of $15.95, while the range low is $8.64. No price-to-earnings ratio is available in the data, so the stock’s valuation depends more heavily on the group’s ability to generate approximately €195 million of adjusted earnings before interest and taxes in fiscal 2026, weighed against the risks associated with Thom Browne’s transformation and the decline in first-half net profit.
Figures in the text are as of 2026-09-04; the live price is shown at the top of the page.
The strongest driver is the Zegna segment, which generated €107 million of adjusted earnings before interest and taxes in the first half of fiscal 2026 at a margin of 14.8%. The increase in DTC’s share to 86% of branded revenues, compared with 82% in the corresponding period, helped improve the mix and operating leverage. Management also reported strong double-digit growth in Zegna’s DTC sales during July and August 2026, with solid performance from categories such as Triple Stitch and 232, knitwear, eyewear, and fragrances.
Net profit declined to €28.4 million from €47.9 million, despite adjusted earnings before interest and taxes increasing to approximately €74.5 million from €68.7 million. The corresponding period included €28 million of non-cash, non-taxable income from remeasuring the Thom Browne put option liability, which did not recur in the first half of fiscal 2026. As a result, total financial items and foreign exchange gains and losses shifted from positive €6 million to negative €23 million, while the effective tax rate was 39% compared with 30%.
Thom Browne recorded an adjusted earnings before interest and taxes loss of €8 million in the first half of fiscal 2026, compared with a profit of €4 million in the corresponding period. This reflects currency pressure, inventory developments and the debt provision, costs related to recruiting talent, and investment in transitioning the brand from a wholesale model to a retail-focused model. Management expects the segment’s adjusted profit to return to positive territory in the second half and to approach breakeven for the full fiscal 2026, supported by reduced currency pressure, improved open-to-buy management, and cost controls.
TOM FORD Fashion narrowed its adjusted earnings before interest and taxes loss to €12 million in the first half of fiscal 2026, compared with a loss of €19 million in the corresponding period. Management attributed the improvement to revenue growth, better fixed-cost absorption, and continued expense discipline. It expects positive adjusted earnings before interest and taxes in the second half, while the full-year fiscal 2026 result remains negative by a few million euros.
Management confirmed on September 3, 2026, that consensus of approximately €195 million in adjusted earnings before interest and taxes for fiscal 2026 is reasonable, although it has become more challenging after increasing by approximately €5 million. It expects an adjusted earnings before interest and taxes margin of approximately 15% for the Zegna segment, Thom Browne to approach breakeven, and TOM FORD Fashion’s annual loss to be limited to a few million euros. For fiscal 2027, management reaffirmed the lower end of guidance at revenues of €2.2 billion and adjusted earnings before interest and taxes of €250 million.
The group generated approximately €19.9 million of free cash flow in the first half of fiscal 2026, after a €23 million outflow in the corresponding period. Trade working capital declined to €420 million at the end of June 2026 from €442 million, and net cash increased to €60 million from €52 million at the end of December 2025. Capital expenditures totaled €64 million, an increase of €10 million, and included investment in the new footwear factory in Parma scheduled to begin operations by the end of 2026.
