Ermenegildo Zegna: 2Q/1H26 - Strong momentum

Research evidence excerpt

Ermenegildo Zegna: 2Q/1H26 - Strong momentum

Update

July 23, 2026 08:57 PM GMT

Morgan Stanley & Co. International plc+MErmenegildo Zegna | Europe Natasha Bonnet

Equity Analyst

2Q/1H26 - Strong momentum Natasha.Bonnet@morganstanley.comEdouard Aubin +44 20 7677-5723

What’s Changed Edouard.Aubin@morganstanley.com +44 20 7425-3160

Grace Smalley, CFA

Ermenegildo Zegna (ZGN.N) From To Equity Analyst

Price Target US$11.00 US$12.00 Grace.Smalley@morganstanley.com +44 20 7425-9629

Cedric Norest

Research Associate

AlphaSignals Earnings Reaction Cedric.Norest@morganstanley.com +44 20 7425-1462

Unchanged Modest upside Modest revision higher

Ermenegildo Zegna (ZGN.N, ZGN US)

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Brands | Italy

Source: Company data, Morgan Stanley Research Stock Rating Equal-weight

Industry View In-Line

Price target US$12.00

Shr price, close (Jul 23, 2026) US$13.81

52-Week Range US$15.43-7.61

Zegna Group beat 2Q26 css sales by 5%, with Zegna brand sales +8.5% ahead of css Mkt cap, curr (mn) €3,157

Net debt (12/26e) (mn)* €753

(+16.5% OSG vs. css +8.4%), boosted by a strong sequential acceleration of DTC to

EV, curr (mn)* €3,982

an impressive +18.4% in 2Q26 (from +14.1% in 1Q26) which was entirely LFL driven

* = GAAP or approximated based on GAAP

(mix being the main contributor, with pure pricing +LSD/MSD% on MSe). By

Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

category, MTM (made-to-measure), luxury leisurewear and shoes outperformed (we

Sales / Revenue 1,917 2,054 2,203 2,324

believe these are higher margin). Thom Browne was mixed, with DTC above css (yet (€mn)**

EBITDA (€mn)** 408 447 500 547

~75% driven by space) and wholesale below. Current trading comments indicated EBIT (€mn)** 163 200 236 268