Ermenegildo Zegna (NYSE:ZGN) has reported FY 2025 first half revenue of €927.7 million and basic EPS of €0.17, with trailing twelve month revenue of about €1.9 billion and EPS of €0.38 framing the latest numbers against its recent earnings expansion. Over the past reported periods, revenue has moved from €960.1 million in 1H 2024 to €986.5 million in 2H 2024 and €927.7 million in 1H 2025, while basic EPS shifted from €0.10 to €0.21 and then €0.17. This gives investors a clearer view of how profit per share has tracked alongside sales. With net margin sitting at 5.1% versus 4% a year ago and earnings up 27.9% over the last twelve months, the current release puts the focus firmly on how much of each euro of revenue is now dropping through to profit.
See our full analysis for Ermenegildo Zegna.With the latest figures on the table, the next step is to see how this earnings profile lines up with the main narratives around Zegna's growth, risk, and profitability, and where those stories start to break apart.
See what the community is saying about Ermenegildo Zegna
Margins Firm Up Around 5.1% Net Level
- Zegna’s trailing twelve month net income is €98.6 million on €1.9b of revenue, lining up with a 5.1% net margin versus 4% a year ago, so more of each euro of sales is currently being kept as profit.
- Consensus narrative expects higher-end collections and more direct to consumer sales to support margins. The current move from 4% to 5.1% net margin puts some numbers behind that view, even as higher SG&A from store expansion and talent could limit how far margins can stretch if revenue growth slows.
Fast EPS Growth Meets Slower Revenue Path
- Trailing EPS of €0.38 sits against forecast earnings growth of about 10.3% a year and revenue growth of roughly 5.9% a year, which is below the US market revenue forecast of 10.5%.
- Analysts’ consensus view links this slower top line outlook to company specific factors, with DTC expansion and new collections expected to support earnings, while softer Greater China revenue and declines in Thom Browne wholesale mean the past 27.9% earnings growth rate and 45% five year average are unlikely to be repeated without those pressures easing.
Premium P/E and DCF Gap to €6.96 Fair Value
- At a share price of €9.68, Zegna trades on a trailing P/E of 21.6x, above the US luxury industry average of 19x and above a DCF fair value of about €6.96, while still below the peer group P/E average of 27.5x.
- Consensus narrative notes that analysts are comfortable with this premium because they expect margins to move from 4% to 5.9% over three years. At the same time, the mix of below market revenue growth, a P/E above the industry and a price above DCF fair value means the story relies heavily on those margin and earnings forecasts playing out as expected.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Ermenegildo Zegna on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
If this mix of margin improvement and premium pricing leaves you curious, do not wait to test the story against the underlying data for yourself. To see what optimism in the market is focusing on right now, take a closer look at the company's 2 key rewards
See What Else Is Out There
Zegna combines a premium 21.6x P/E and a share price above its €6.96 DCF fair value with slower revenue expectations than the broader US market.
If that mix of a rich earnings multiple and a price above the intrinsic estimate makes you cautious, compare it with companies in the 52 high quality undervalued stocks that better align price with fundamentals.
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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