This would be my first time covering Ermenegildo Zegna N.V. ( ZGN ). It's an iconic Italian luxury fashion company that focuses on high-end clothing and accessories, designing, producing, and selling products under brands such as ZEGNA, ThomI focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity markets.Analyst’ ...

Reported profit rose to EUR 109 million from EUR 91 million in the prior year. Tagliabue attributed part of the change in the tax line to a lower effective tax rate of 22% (from 30% last year), citing non-taxable income in 2025 related to the remeasurement of put option liabilities, “mainly the one on the remaining 8% stake on Thom Browne.”The group posted a 67.5% gross margin and adjusted EBIT of EUR 163 million , which included EUR 10 million of provisions tied to expected losses on trade receivables rela ...

Financial Data and Key Metrics Changes - The company reported full year 2025 revenues of EUR 1,917 million, a decrease of 1.5% year-over-year on a reported basis, but an increase of 1.1% on an organic basis [9] - Gross margin improved by 90 basis points to 67.5%, primarily driven by a shift in channel mix, with Direct-to-Consumer (DTC) sales reaching 82% of branded revenues compared to 78% the previous year [10] - Adjusted EBIT was EUR 163 million, which included EUR 10 million in provisions related to losses on trade receivables [9][10] - The company achieved a profit of EUR 109 million, up 20% from EUR 91 million the previous year [10] Business Line Data and Key Metrics Changes - The Zegna segment generated an adjusted EBIT of EUR 197 million with a margin of 14.4%, up from 13.9% the previous year [13] - The Thom Browne segment faced challenges, achieving only EUR 1 million in adjusted EBIT due to a reduction in revenues from wholesale streamlining [14] - The Tom Ford Fashion segment reported a loss of EUR 16 million in adjusted EBIT for the first half of the year, but showed improvement in the second half [14] Market Data and Key Metrics Changes - The Middle East region represents a mid-high single-digit share of the company's total revenues, with all stores in the area currently open and operating [18] - The company noted a cautious outlook for the Chinese market, expecting a flattish performance for the year despite some sequential improvement [27] Company Strategy and Development Direction - The company is focusing on enhancing its brand presence through high-profile fashion shows and collaborations, such as the Thom Browne sneaker launch with ASICS [4][5] - Zegna aims to build a brand that seamlessly integrates fashion, culture, and landscape, with plans for a spring/summer 2027 fashion show in Los Angeles [8] - The company is committed to long-term investments in talent, systems, and store network expansions, particularly for Thom Browne and Tom Ford [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the first quarter of 2026, noting a slight improvement in DTC trends compared to Q4 2025, despite uncertainties from the Middle East conflict [26] - The company remains focused on delivering its 2027 targets, acknowledging the increased uncertainty in the global economic outlook [19] Other Important Information - The effective tax rate decreased to 22% from 30% the previous year due to non-taxable income related to the remeasurement of put option liabilities [15] - The company plans to distribute a dividend of 12 cents per share, totaling approximately EUR 32 million [15] Q&A Session Summary Question: Update on top-line momentum and regional trends - Management noted that the year has started well, with trends slightly better than Q4 2025 in DTC, despite uncertainties from the Middle East conflict [26] Question: Zegna segment EBIT margin expectations - Management indicated that the Zegna segment's EBIT margin could improve, with a focus on long-term profitability rather than short-term results [29] Question: Impact of foreign exchange on profitability - Management acknowledged that currency fluctuations could create a headwind of around two points on profitability for 2026 [30] Question: Changes in consumer behavior due to recent events - Management reported no significant changes in consumer behavior outside the Middle East, where traffic has decreased [36] Question: Pricing environment and opportunities - Management confirmed ongoing low to mid-single-digit price increases and an upward evolution of the product mix [47] Question: Middle East market specifics - Management confirmed that the UAE is the largest market in the Middle East, with plans to continue store openings in the region [116]

Financial Data and Key Metrics Changes - The company reported full year 2025 revenues of EUR 1,917 million, a decrease of 1.5% year-over-year on a reported basis, but an increase of 1.1% on an organic basis [9] - Gross margin reached 67.5%, up 90 basis points, primarily driven by a shift in channel mix with Direct-to-Consumer (DTC) accounting for 82% of branded revenues compared to 78% the previous year [10] - Adjusted EBIT was EUR 163 million, which included EUR 10 million in provisions related to losses on trade receivables [9][10] - The company achieved a profit of EUR 109 million, a 20% increase from EUR 91 million in the previous year [10] - The effective tax rate decreased to 22% from 30% due to non-taxable income related to the remeasurement of put option liabilities [15] Business Line Data and Key Metrics Changes - The Zegna segment generated an adjusted EBIT of EUR 197 million with a margin of 14.4%, up from 13.9% the previous year [13] - The Thom Browne segment was significantly impacted by a reduction in revenues, achieving only EUR 1 million in adjusted EBIT [14] - The Tom Ford Fashion segment reported a loss of EUR 16 million in adjusted EBIT for the first half of the year, but showed improvement in the second half [14] Market Data and Key Metrics Changes - The Middle East region represents a mid-high single-digit share of the company's total revenues, with all stores in the area currently open and operating [18] - The Americas, particularly the United States and Latin America, showed resilience with continued growth, while Europe also remained stable despite the conflict in the Middle East [27] Company Strategy and Development Direction - The company is focusing on enhancing its brand presence through strategic collaborations, such as the Thom Browne sneaker launch with ASICS, which has exceeded revenue expectations [4][5] - Zegna aims to build a brand that integrates fashion, culture, and landscape, with upcoming events like the spring and summer 2027 fashion show in Los Angeles [8] - The company is committed to a long-term vision, investing in talent and infrastructure to support brand growth, particularly for Thom Browne and Tom Ford [11][29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the current trends, noting slight improvements in DTC performance compared to Q4 2025, despite uncertainties from the Middle East conflict [26] - The company remains cautious about the Chinese market, expecting a flattish performance for the year while acknowledging slight improvements during the Chinese New Year [27] - Management highlighted the importance of maintaining strong relationships with customers in the Middle East and adapting strategies to the evolving market conditions [41] Other Important Information - The company plans to open new stores in Abu Dhabi by the end of the year, continuing its expansion strategy in the Middle East [116] - Capital expenditures for 2025 reached EUR 103 million, with expectations for increased investments in 2026 related to a new shoe factory [16] Q&A Session Summary Question: Update on top-line momentum and regional trends - Management noted that the year has started well with trends slightly better than Q4 2025, particularly in DTC, despite uncertainties from the Middle East conflict [26] Question: Zegna segment EBIT margin expectations - Management indicated that the Zegna segment's EBIT margin could improve, with a focus on long-term profitability rather than short-term results [29] Question: Impact of foreign exchange on profitability - Management acknowledged a potential headwind of around 2 points from currency fluctuations affecting profitability in 2026 [30] Question: Changes in consumer behavior due to the current environment - Management reported no significant changes in consumer behavior outside the Middle East, where traffic has decreased [36] Question: Pricing environment and opportunities for higher pricing - Management confirmed ongoing low to mid-single-digit price increases and an upward evolution of the product mix [47] Question: Shipment status and rent structure in the Middle East - Management confirmed that shipments to the Middle East are ongoing, with a mix of variable and fixed rents [62] Question: Profitability improvements for Tom Ford in H2 - Management highlighted improvements in gross margin and operational efficiency as key drivers for Tom Ford's profitability in the second half [64] Question: Exposure to local versus tourist spending - Management indicated that local spending is predominant, with minimal exposure to tourist spending, particularly in Greater China [68]

Financial Data and Key Metrics Changes - The company reported full year 2025 revenues of EUR 1,917 million, a decrease of 1.5% year-over-year on a reported basis, but an increase of 1.1% on an organic basis [10] - Gross margin improved by 90 basis points to 67.5%, primarily driven by a shift in channel mix, with Direct-to-Consumer (DTC) sales reaching 82% of branded revenues compared to 78% the previous year [11] - Adjusted EBIT was EUR 163 million, which included EUR 10 million in provisions related to losses on trade receivables [10][11] - The company achieved a profit of EUR 109 million, up 20% from EUR 91 million the previous year [11][15] - The effective tax rate decreased to 22% from 30% due to non-taxable income related to the remeasurement of put option liabilities [15] Business Line Data and Key Metrics Changes - The Zegna segment generated an adjusted EBIT of EUR 197 million with a margin of 14.4%, up from 13.9% the previous year [13] - The Thom Browne segment was significantly impacted by a reduction in revenues, achieving only EUR 1 million in adjusted EBIT [14] - The Tom Ford Fashion segment reported a loss of EUR 16 million in adjusted EBIT for the year, with EUR 5 million in provisions related to Saks Global [14] Market Data and Key Metrics Changes - The Middle East region represents a mid-high single-digit share of the company's total revenues, with all stores in the area currently open and operating [18] - The company noted that the Americas and Europe remain resilient despite the conflict in the Middle East, with good growth expected [26] Company Strategy and Development Direction - The company is focusing on enhancing its brand presence through cultural initiatives, such as sponsoring the Italian Pavilion at the Venice Biennale [8] - Future plans include the launch of new collections and collaborations, such as the Thom Browne sneaker with ASICS, aimed at attracting new customers [5][6] - The company is committed to a long-term vision, emphasizing the importance of brand heritage and customer experience [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the current operating environment, noting slight improvements in DTC trends and performance in various regions, particularly in the Americas and Europe [25][26] - The company remains cautious about the Chinese market, expecting a flattish performance for the year despite some signs of improvement [25][26] - Management acknowledged the uncertainty in the global economic outlook due to geopolitical factors, particularly in the Middle East [19] Other Important Information - The company plans to increase capital expenditures (CapEx) to approximately 7% of revenues in 2026, primarily for the new shoe factory in Parma [16] - Trade working capital improved to EUR 408 million, representing 21.3% of revenues, down from 23.6% the previous year [17] Q&A Session Summary Question: Update on top-line momentum and regional trends - Management noted that the year has started well, with trends slightly better than Q4 2025 in DTC, despite uncertainties from the Middle East conflict [25][26] Question: Zegna segment EBIT margin expectations - Management indicated that the Zegna segment's EBIT margin could improve, with a focus on long-term profitability rather than short-term results [28] Question: Impact of foreign exchange on profitability - Management acknowledged a potential headwind of around 2 points from currency fluctuations affecting profitability [29] Question: Changes in consumer behavior and spending - Management reported no significant changes in consumer behavior outside the Middle East, where traffic has decreased [36] Question: Profitability improvements for Tom Ford and Thom Browne - Management expects profitability for both brands to improve in 2026, with Thom Browne aiming for a return to reasonable profitability [101]

FY 2025 FINANCIAL RESULTS Audited figures March 20, 2026 1 2 3 What we did last month TOM FORD FASHION Fall Winter 2026 What we did in the last month THOM BROWNE thom browne x ASICS sportstyle 4 What we did in the last month 5 ZEGNA MEMORIE What we did in the last month 6 ZEGNA Villa Zegna FY 2025 RESULTS - KEY HIGHLIGHTS1,2 €1,917m -1.5% Year-on-Year (YoY) +1.1% organic growth3 Consolidated Revenues Profit and Net Cash Surplus €109m profit (5.7% margin) vs. €91 and 4.7% margin in FY 2024 €52m Cash surplus ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

Core Insights - Ermenegildo Zegna Group reported a profit of €109.5 million for FY 2025, reflecting a 20% increase year-on-year, alongside a cash surplus of €52 million [1][2][4] Financial Performance - Group revenues for FY 2025 reached €1.9 billion, representing a 1.5% decline year-on-year but a 1.1% organic growth [2][4] - Adjusted EBIT for FY 2025 was €163 million, down from €184 million in FY 2024, impacted by a €10 million provision for expected losses related to Saks Global [1][4][16] - Gross profit margin improved to 67.5%, up from 66.6% in FY 2024, driven by a favorable channel mix with direct-to-consumer sales increasing to 82% of total branded products revenues [4][10] Segment Analysis - Zegna brand revenues were €1.36 billion, up 1.1% year-on-year, while Thom Browne revenues fell 14.6% to €268.9 million, and Tom Ford Fashion revenues increased by 0.8% to €317.1 million [9][25][27] - Adjusted EBIT for the Zegna segment was €196.7 million with a margin of 14.4%, while Thom Browne's adjusted EBIT was €952 thousand with a margin of 0.4% [24][26] Cash Flow and Financial Position - The company achieved a cash surplus of €52.1 million at the end of FY 2025, a significant improvement from a net financial indebtedness of €94.2 million in FY 2024 [4][33] - Free cash flow for FY 2025 was €82.1 million, up from €10.1 million in FY 2024, attributed to higher cash flow from operating activities and improved working capital management [34] Capital Expenditure - Capital expenditure for FY 2025 was €102.9 million, down from €125.5 million in FY 2024, primarily focused on store network investments and IT initiatives [31][32] Outlook and Strategic Focus - The company remains focused on disciplined growth and strong cash generation despite uncertainties in the global economic outlook, particularly due to geopolitical tensions in the Middle East [3][34] - A proposed dividend of €0.12 per share was announced, subject to shareholder approval [38]

Core Viewpoint - Ermenegildo Zegna Group (NYSE:ZGN) is considered one of the best Italian stocks to buy in 2026, with recent upgrades from Morgan Stanley and UBS indicating positive momentum in sales and brand performance [1][3]. Financial Performance - In Q4 2025, Ermenegildo Zegna's revenue increased by 4.6% to €591 million, while the full-year revenue rose by 1% to €1.917 billion [4]. - The Zegna brand accounts for approximately 60% of the company's total sales, reflecting strong consumer engagement and profitability [4]. Analyst Ratings and Price Targets - Morgan Stanley upgraded Zegna's stock rating to Equalweight from Underweight, setting a price target of $11, citing better-than-expected Q4 sales results [1]. - UBS also upgraded Zegna to a Buy from Neutral, raising the price target to $11.50 from $11, highlighting strong momentum driven by Western consumers [3]. Store Portfolio and Brand Concerns - Analyst Natasha Bonnet from Morgan Stanley expressed cautious optimism regarding Zegna's store portfolio optimization but raised concerns about the company's wholesale rationalization, particularly for the Tom Ford and Thom Browne brands [2].

Investment Rating - The report maintains an investment rating of "A" for the textile and apparel industry [1] Core Insights - The textile and apparel industry has shown a weak recovery, with a focus on consumer performance at the retail end, innovation in major home textile products, and the IP economy [10] - The report highlights significant sales growth in certain brands and sectors, indicating potential investment opportunities [10] Summary by Sections Recent Observations - Under Armour reported a 5% year-over-year revenue decline in FY2026Q3, with revenues of $1.3 billion and a net loss of $431 million [19] - North American revenue fell by 10% to $757 million, while international revenue grew by 3% to $577 million, with EMEA up 6% and Latin America up 20% [4][19] Market Performance - The SW textile and apparel sector rose by 1.32%, outperforming the Shanghai Composite Index by 2.66 percentage points [21] - The SW textile manufacturing sub-sector increased by 2.18%, while the apparel and home textile sub-sector rose by 2.25% [22] Company Performance - Notable companies in the textile and apparel sector include Cai Bai Co., which saw a 30.39% increase in stock price, and Bangjie Co., which rose by 25% [32] - Conversely, China Gold experienced a significant decline of 22.21% in stock price [32] Industry Data Tracking - In December 2025, China's retail sales reached 4.51 trillion yuan, a year-over-year increase of 0.9% [55] - The textile and apparel retail sector saw a modest growth of 0.6% year-over-year in 2025 [56] Investment Recommendations - The report recommends focusing on brands like Bosideng, which is committed to product innovation and channel quality improvement, and companies like Ge Li Si and Jiangnan Buyi, which have shown stable operational performance [10] - In the home textile sector, attention is drawn to companies like Luolai Life and Mercury Home Textile, which are driving growth through major product innovations [10] Material Prices - As of February 6, 2026, the price index for cotton in China was 16,025 yuan per ton, reflecting a 1.0% decrease [36] - The gold price was reported at 1,093.85 yuan per gram, down 6.02% [36] Export Data - In 2025, China's textile and apparel exports amounted to $1,425.85 billion and $1,511.82 billion, showing a year-over-year growth of 0.5% and a decline of 5.0%, respectively [47] Retail Sector Insights - The report emphasizes the importance of direct-to-consumer (DTC) channels, with brands like Zegna showing positive growth in this area [69]