Italian luxury group Zegna's Q3 revenue inches up on DTC growth

Overview

• Ermenegildo Zegna Q3 2025 revenue rose 0.2% YoY, driven by DTC growth

• Company's DTC channel grew 4.5% YoY, offsetting wholesale decline

• Americas region led growth with 8.2% YoY revenue increase in Q3

Outlook

• Company expects challenging environment due to uncertainties in demand and currency fluctuations

• Company remains confident in achieving mid-term targets

Result Drivers

• DTC GROWTH - Strong performance in DTC channel with 4.5% YoY and 9.1% organic growth, led by ZEGNA brand

• WHOLESALE DECLINE - Strategic focus on DTC led to 15.5% YoY decline in wholesale revenues

• BRAND PERFORMANCE - ZEGNA brand led growth with 2.0% YoY and 5.6% organic increase, driven by DTC in Americas and EMEA

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Ermenegildo Zegna NV is $10.92, about 4.1% above its October 21 closing price of $10.47

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw4QCyzNa

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