ZGN
Consumer CyclicalErmenegildo Zegna N.V. · Apparel - Manufacturers · $4B
What is Ermenegildo Zegna N.V.?
Ermenegildo Zegna N.V. is a global luxury fashion house best known for premium menswear, footwear, and leather goods. Operating under both the Zegna and Thom Browne brands, the company serves affluent customers across major markets worldwide.
Zegna designs, manufactures, and sells luxury clothing and accessories through its own retail stores and online channels across Europe, the Americas, Asia Pacific, and beyond. Revenue comes primarily from direct-to-consumer retail, with the Thom Browne brand adding a distinct design-forward segment targeting both men and women. Licensed products such as eyewear, watches, and fragrances round out the portfolio.
The Zegna brand traces its origins to 1910, with the current listed entity headquartered in Trivero, Italy.
- Luxury menswear — suits, tuxedos, and formal outerwear under the Zegna brand
- Leather goods — shoes, bags, belts, and small accessories
- Thom Browne womenswear, menswear, and childrenswear
- Licensed accessories including eyewear, watches, and fragrances
Is ZGN a Good Stock to Buy?
UQS Score rates ZGN as Below Average overall, reflecting meaningful challenges across several key quality dimensions.
Valuation stands out as the relative bright spot in ZGN's profile, rated Good — suggesting the market may already be pricing in the company's headwinds. Quality and Growth both sit at Neutral, indicating neither a clear drag nor a standout advantage in those areas.
Both the Moat and Risk pillars are rated Weak, pointing to limited competitive durability and elevated uncertainty — notable concerns for a luxury brand competing in a crowded global market.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does ZGN pay dividends?
Yes — Ermenegildo Zegna N.V. pays a dividend.
ZGN pays a regular dividend, which is relatively uncommon among mid-cap luxury names still investing in brand expansion. For income-oriented investors, this adds a layer of return beyond price appreciation. The dividend reflects the founding family's long-term ownership orientation, though investors should weigh payout sustainability against the company's Weak Risk profile.
When does ZGN report earnings?
Ermenegildo Zegna reports earnings on a quarterly cadence, consistent with its listing as a US-traded equity.
Zegna operates in a luxury segment sensitive to consumer confidence and regional spending trends, particularly in Asia Pacific and North America. Results can vary meaningfully quarter to quarter based on brand momentum and wholesale channel dynamics.
For the most recent quarter's results and guidance, visit Ermenegildo Zegna's official investor relations page.
ZGN Price History
+20.8% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Ermenegildo Zegna N.V.?
Based on Ermenegildo Zegna N.V.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
ZGN Long-term Outlook
With Growth and Quality both at Neutral, ZGN's near-term trajectory appears steady rather than accelerating. The Weak Risk pillar suggests the path forward carries meaningful uncertainty — including exposure to luxury demand cycles and currency fluctuations. The Good Valuation rating may offer some cushion, but the Weak Moat limits confidence in durable long-term outperformance.
Growth drivers
- Continued direct-to-consumer retail expansion in underpenetrated markets
- Thom Browne brand development across womenswear and new categories
- Growing global appetite for accessible ultra-luxury menswear
Key risks
- Weak competitive moat relative to larger luxury conglomerates
- Exposure to luxury spending slowdowns, particularly in Asia
- Integration and brand-management complexity across two distinct labels
ZGN vs Peers
ZGN competes broadly in the premium apparel and lifestyle space, though its direct luxury peers differ meaningfully in brand positioning and business model.
Columbia focuses on outdoor performance apparel at accessible price points, occupying a very different market segment from Zegna's ultra-luxury positioning.
Under Armour targets athletic and performance wear, competing on function and brand heat rather than heritage craftsmanship or luxury status.
The UA share class represents the same underlying business as UAA, with a different voting structure but identical operational exposure.
Frequently Asked Questions
What does Ermenegildo Zegna do?
Ermenegildo Zegna designs, manufactures, and sells luxury menswear, footwear, leather goods, and accessories under the Zegna and Thom Browne brands. The company operates retail stores and online channels across Europe, the Americas, Asia Pacific, and other international markets.
Does ZGN pay dividends?
Yes, ZGN pays a regular dividend. This is relatively uncommon among mid-cap luxury companies still investing in global brand expansion. Investors should review the company's investor relations page for the most current dividend details and payment schedule.
When does ZGN report earnings?
Ermenegildo Zegna reports earnings on a quarterly cadence, as is standard for US-listed equities. For the exact timing of upcoming releases, check the company's investor relations page directly.
Is ZGN a good stock to buy?
UQS Score rates ZGN as Below Average overall. While Valuation is rated Good, both the Moat and Risk pillars are Weak — indicating limited competitive durability and elevated uncertainty. Investors should weigh these factors carefully. The full pillar breakdown is available to UQS Pro members.
Is ZGN overvalued?
Based on the UQS Valuation pillar, ZGN is rated Good — suggesting the stock is not obviously expensive relative to its fundamentals. However, a favorable valuation rating alone does not offset the Weak Moat and Risk profiles identified in the full UQS analysis.
How does ZGN compare to its competitors?
ZGN's listed peers in this analysis — Columbia Sportswear and Under Armour — operate in performance and outdoor apparel rather than ultra-luxury fashion, making direct comparison limited. Within the broader luxury sector, Zegna faces competition from larger conglomerates with stronger brand portfolios and distribution scale.
What is ZGN's market cap bracket?
ZGN is classified as a mid-cap stock. This places it in a tier where liquidity is generally adequate for most retail investors, though it lacks the scale and resources of mega-cap luxury conglomerates.
Who founded Ermenegildo Zegna?
The Zegna brand was founded by Ermenegildo Zegna in 1910 in the Biella region of northern Italy. The company remains closely tied to the founding family through its parent entity, Monterubello Societa' Semplice.
Is ZGN a long-term quality investment?
As a long-term quality indicator, UQS rates ZGN Below Average. The Weak Moat pillar is a particular concern for long-horizon investors, as it suggests the brand may struggle to defend margins and market share against well-resourced luxury competitors over time.
What is the main competitive advantage of Ermenegildo Zegna?
Zegna's heritage in fine Italian tailoring — dating back over a century — and its vertically integrated supply chain are its most cited differentiators. However, the UQS Moat pillar rates this advantage as Weak, suggesting these factors have not yet translated into a durable competitive edge by quantitative measures.
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Pro Analysis
ZGN — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 17, 2026 | 46.4 | 50.8 | 27.0 | 53.9 | 34.7 | 73.3 | -0.4 |
| May 7, 2026 | 46.8 | 50.8 | 27.0 | 54.3 | 34.7 | 75.2 | -0.1 |
| May 5, 2026 | 46.9 | 50.8 | 27.0 | 54.3 | 34.7 | 76.0 | +0.2 |
| May 3, 2026 | 46.7 | 50.8 | 27.0 | 53.6 | 34.7 | 75.5 | -0.1 |
| May 1, 2026 | 46.8 | 50.8 | 27.0 | 53.6 | 34.7 | 76.5 | -0.1 |
| Apr 27, 2026 | 46.9 | 50.8 | 27.0 | 53.7 | 34.7 | 76.5 | -0.1 |
| Apr 26, 2026 | 47.0 | 50.8 | 27.0 | 54.4 | 34.7 | 76.7 | 0.0 |
| Apr 22, 2026 | 47.0 | 50.8 | 27.0 | 54.4 | 34.7 | 76.5 | -0.1 |
| Apr 19, 2026 | 47.1 | 50.8 | 27.0 | 54.8 | 34.7 | 76.5 | -0.2 |
| Apr 18, 2026 | 47.3 | 50.8 | 27.0 | 54.8 | 34.7 | 77.7 | -0.1 |
ZGN — Pillar Breakdown
Quality
— 50.8/100 (25%)Ermenegildo Zegna N.V. has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 53.5/100 (20%)Ermenegildo Zegna N.V. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 34.7/100 (15%)Ermenegildo Zegna N.V. presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 71.7/100 (15%)Ermenegildo Zegna N.V. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 27/100 (25%)Ermenegildo Zegna N.V. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ZGN.
Score Composition
Financial Data
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How is the ZGN UQS Score Calculated?
The UQS (Unified Quality Score) for Ermenegildo Zegna N.V. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Ermenegildo Zegna N.V.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Ermenegildo Zegna N.V. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.