Ermenegildo Zegna: Hold And Wait For A Better Entry Point

  • Zegna's diversified product portfolio and strategic acquisitions, including Tom Ford, position it well for future growth despite current operational margin challenges. The luxury fashion market is evolving, with a shift towards comfort and sustainability, and Zegna's emphasis on craftsmanship and quality aligns with these trends. Despite a slight YoY revenue decline, Zegna's DTC channel and key brands like TOM FORD Fashion show promising growth, offsetting wholesale performance drops.