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NEW YORK -Ermenegildo Zegna N.V. (NYSE:ZGN) the luxury fashion group reported better-than-expected full-year results and provided an optimistic medium-term outlook on Thursday.
The company’s shares jumped 5.93% in premarket trading following the release.
The Italian company posted adjusted earnings of €0.30 per share for fiscal year 2024, surpassing analyst estimates. Revenue rose 2.2% year-over-year to €1.95 billion, also topping expectations.
Zegna’s ZEGNA brand was a key driver, with revenues up 4.9% organically to €1.16 billion. This helped offset weakness in the Thom Browne segment, where revenues fell 16.8% to €314.7 million.
"Despite a challenging environment in 2024, the Group achieved Adjusted EBIT of €184 million," said Chairman and CEO Ermenegildo Gildo Zegna. He noted the company maintained a "highly disciplined approach, focusing on key projects and investments that enhance brand desirability while ensuring strict cost control."
Looking ahead, Zegna provided an upbeat medium-term outlook. The company expects to reach revenues of €2.2-2.4 billion and adjusted EBIT of €250-300 million by 2027.
The strong results and positive guidance sparked investor optimism, sending Zegna shares sharply higher in Thursday trading. The stock’s surge suggests markets are encouraged by the luxury brand’s ability to grow sales and maintain profitability despite macroeconomic headwinds.
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