Revenue growth has stalled into a 0.5% contraction as of 2025Q4, while gross margins experienced significant compression from a 67.5% peak in 2025Q2 to 56.0% in the most recent quarter.
Ermenegildo Zegna N.V. (ZGN) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 3.9B | 1.84B | 1.95B | 1.9B | 1.49B | 1.29B | 1.02B | 1.32B | 1.18B |
| Revenue Growth % | 7.39% | -5.41% | 2.21% | 27.58% | 15.51% | 26.69% | -22.8% | 11.73% | - |
| Cost of Goods Sold | 1.5B | 817.08M | 650.09M | 680.24M | 564.83M | 491.62M | 482.2M | 389.51M | 300.77M |
| COGS % of Revenue | - | 44.38% | 33.4% | 35.72% | 37.84% | 38.04% | 47.27% | 29.48% | 25.43% |
| Gross Profit | 2.4B | 1.02B | 1.3B | 1.22B | 928.01M | 800.79M | 537.9M | 776.74M | 726.62M |
| Gross Margin % | 61.48% | 55.62% | 66.6% | 64.28% | 62.16% | 61.96% | 52.73% | 58.78% | 61.44% |
| Gross Profit Growth % | - | -21.01% | 5.9% | 31.93% | 15.89% | 48.87% | -30.75% | 6.9% | - |
| Operating Expenses | 2.07B | 867.68M | 1.13B | 1.02B | 780.23M | 890.73M | 560.46M | 688.1M | 631.82M |
| OpEx % of Revenue | - | 47.12% | 58.03% | 53.35% | 52.26% | 68.92% | 54.94% | 52.08% | 53.43% |
| Selling, General & Admin | 2.2B | 1.15B | 1.13B | 1.02B | 764.42M | 890.73M | 510.31M | 641.81M | 610.05M |
| SG&A % of Revenue | - | 62.7% | 58.03% | 53.35% | 51.21% | 68.92% | 50.02% | 48.57% | 51.59% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | -286.87M | 0 | 0 | 15.81M | 0 | 50.15M | 46.29M | 21.77M |
| Operating Income | 324.17M | 156.53M | 166.85M | 208.15M | 147.78M | -94.03M | -22.55M | 88.64M | 94.8M |
| Operating Margin % | 8.32% | 8.5% | 8.57% | 10.93% | 9.9% | -7.28% | -2.21% | 6.71% | 8.02% |
| Operating Income Growth % | - | -6.19% | -19.84% | 40.85% | 257.16% | -316.88% | -125.45% | -6.5% | - |
| EBITDA | 652.78M | 391.75M | 402.8M | 401.32M | 319.66M | 60.17M | 143.65M | 265.71M | 255.39M |
| EBITDA Margin % | 16.75% | 21.28% | 20.69% | 21.07% | 21.41% | 4.66% | 14.08% | 20.11% | 21.6% |
| EBITDA Growth % | 35.78% | -2.74% | 0.37% | 25.55% | 431.29% | -58.12% | -45.94% | 4.04% | - |
| D&A (Non-Cash Add-back) | 328.61M | 235.22M | 235.95M | 193.17M | 171.88M | 154.19M | 166.21M | 177.07M | 160.59M |
| EBIT | 340.83M | 156.53M | 170.28M | 199.78M | 163.62M | -83.06M | -15.18M | 87.99M | 87.72M |
| Net Interest Income | -70.59M | -10.2M | -37.1M | -25.69M | -14.3M | -11.44M | -12.53M | -12.6M | -10.46M |
| Interest Income | 20.15M | 32.29M | 2.57M | 5M | 1.73M | 2.46M | 3.85M | 6.16M | 7.36M |
| Interest Expense | 90.74M | 42.5M | 39.67M | 30.69M | 16.02M | 13.9M | 16.38M | 18.76M | 17.82M |
| Other Income/Expense | -55.49M | -22.01M | -36.24M | -39.05M | -46.7M | -2.93M | -9M | -19.41M | -24.89M |
| Pretax Income | 268.68M | 134.51M | 130.61M | 169.09M | 101.08M | -96.96M | -31.56M | 69.23M | 69.91M |
| Pretax Margin % | 6.89% | 7.31% | 6.71% | 8.88% | 6.77% | -7.5% | -3.09% | 5.24% | 5.91% |
| Income Tax | 71.3M | 29.35M | 39.75M | 33.43M | 35.8M | 30.7M | 14.98M | 43.79M | 29.39M |
| Effective Tax Rate % | 26.54% | 21.82% | 30.43% | 19.77% | 35.42% | -31.66% | -47.48% | 63.26% | 42.05% |
| Net Income | 173.64M | 94.69M | 77.08M | 121.53M | 51.48M | -136M | -50.58M | 21.75M | 37.71M |
| Net Margin % | 4.46% | 5.14% | 3.96% | 6.38% | 3.45% | -10.52% | -4.96% | 1.65% | 3.19% |
| Net Income Growth % | -5.66% | 22.84% | -36.57% | 136.06% | 137.85% | -168.9% | -332.55% | -42.33% | - |
| Net Income (Continuing) | 197.38M | 105.17M | 90.86M | 135.66M | 65.28M | -127.66M | -46.54M | 25.44M | 40.51M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 73.21M | 68.04M | 66.77M | 60.65M | 53.37M | 43.09M | 43.27M | 40.98M | 34.21M |
| EPS (Diluted) | 0.64 | 0.37 | 0.30 | 0.48 | 0.21 | -0.67 | -0.21 | 0.09 | 0.16 |
| EPS Growth % | -9.89% | 23.33% | -37.5% | 128.57% | 131.34% | -219.05% | -334.11% | -43.94% | - |
| EPS (Basic) | - | 0.37 | 0.31 | 0.48 | 0.21 | -0.67 | -0.21 | 0.09 | 0.16 |
| Diluted Shares Outstanding | 270.24M | 261.47M | 254.24M | 252.36M | 240.65M | 203.5M | 222.43M | 242.34M | 242.34M |
| Basic Shares Outstanding | 268.45M | 259.6M | 251.53M | 253.19M | 237.55M | 203.5M | 221.96M | 242.34M | 242.34M |
| Dividend Payout Ratio | - | 30.93% | 39.3% | 20.6% | 42.45% | - | - | 58.54% | 34.86% |
Quick answers to the most common questions about buying ZGN stock.
For fiscal year 2025, Ermenegildo Zegna N.V. (ZGN) reported total revenue of $1.84B. This represents a 55.7% increase compared to $1.18B in 2018.
Ermenegildo Zegna N.V. (ZGN) is profitable, generating $94.7M in net income for the fiscal year ending 2025 with a net profit margin of 5.1%.
Ermenegildo Zegna N.V. (ZGN) reported an operating income of $156.5M, resulting in an operating profit margin of 8.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Ermenegildo Zegna N.V. (ZGN) generated $1.02B in gross profit for the year, representing a gross profit margin of 55.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
China luxury market exposure
Revenue Growth Facing Structural Headwinds
As reported in recent financial filings, ZGN's revenue growth has decelerated significantly, shifting from double-digit expansion in 2023 to a contraction of 0.5% by 2025Q4, reflecting a challenging macro environment and potential saturation in key luxury markets that warrants close monitoring by institutional investors.
The transition from high-growth periods to recent contraction suggests that the brand elevation strategy is encountering resistance, particularly in the Asia-Pacific region. Investors should consider whether the shift toward luxury leisurewear is sufficient to offset the cyclical downturn in traditional suiting demand.
Gross Margin Volatility Signals Pressure
Based on reported figures, ZGN's gross margin experienced a notable compression to 56.0% in 2025Q4 from a peak of 67.5% in 2025Q2, indicating that the company's pricing power may be constrained by rising input costs or increased promotional activity within its wholesale channels.
This margin volatility highlights the difficulty of maintaining premium pricing in a softening luxury environment. The fluctuation suggests that the company's vertical integration, while a structural advantage, is not entirely immune to the inflationary pressures impacting the broader apparel manufacturing sector.
Operating Leverage Constrained by Overhead
According to the income statement data, ZGN's operating margin has struggled to scale, hovering at 9.5% in 2025Q4 despite significant revenue volume, which suggests that fixed costs associated with the retail estate and Tom Ford integration are currently outpacing the company's ability to drive operating leverage.
The persistence of high SG&A expenses relative to gross profit indicates that the company is in a heavy investment phase. Analysts should monitor whether these expenditures yield long-term brand equity or if they represent a permanent increase in the cost base that limits future profitability.
Execution Risks in Brand Transformation
Financial statements reveal that ZGN's net income remains sensitive to non-operating items and integration costs, with net margins fluctuating between 2.6% and 7.5% over the last two years, raising questions about the sustainability of current earnings quality during this complex multi-brand transition period.
Short-sellers may focus on the potential for inventory obsolescence as the company pivots toward fashion-forward lines under Thom Browne and Tom Ford. The reliance on high-end discretionary spending makes the current earnings profile vulnerable to any further deterioration in global consumer sentiment.