Ermenegildo Zegna: Limited Upside Amid Macro Uncertainty

Ermenegildo Zegna N.V. delivered solid 2025 results, outperforming luxury peers with €1.91 billion in sales and a robust gross margin, but faces a muted growth outlook. Profitability is supported by an 82% DTC retail mix and prudent CAPEX, but margin visibility is constrained by regional uncertainties and segment pressures. Our updated 2026 estimates imply a limited upside, close to the current trading levels; therefore, we maintain a Neutral stance and prefer to wait for a better entry point.