Zegna’s (ZGN) Direct Sales Surge Can’t Fully Offset A Messier Profit

HSBC initiated coverage of Ermenegildo Zegna with a Buy rating, citing strong growth in the ultra-luxury segment and a resilient customer base. The stock has risen 31% over the past year, with HSBC projecting a 28% upside to $16. Zegna's H1 2026 growth was 13.8%, outperforming the luxury sector average of 6.6%.

Ermenegildo Zegna (ZGN) stock rose 1.1% to $12.68 after HSBC initiated coverage with a Buy rating and $16.00 price target, citing growth potential. HSBC projects sales densities to rise to EUR 28,000 per square meter by 2028. Goldman Sachs reiterated a Neutral rating with a $14.00 target. The company's H1 2026 revenue was $517.12M, exceeding forecasts. The S&P 500 also advanced 0.7%.

HSBC initiated coverage on Ermenegildo Zegna Group (ZGN) with a Buy rating and $16.00 price target, citing 13.8% organic growth in H1 2026. HSBC expects Made-to-Measure sales growth and higher gross margins. ZGN reported $517.12M revenue, beating estimates, but profit declined. Goldman Sachs maintained a Neutral rating with a $14.00 target.

Goldman Sachs initiated coverage of 10 European luxury stocks, rating four Buy: Richemont (CHF225 target), LVMH (€500 target), Moncler (€62 target), and Prada (HK$52 target). The firm expects sector growth to rebound in 2027, with U.S. outperformance continuing. Neutral ratings were given to Kering, Burberry, Brunello Cucinelli, and Zegna, while Hermes and Swatch were rated Sell.

Zegna (ZGN) reported Q2 2026 earnings with adjusted EBIT of EUR 74M, up from EUR 69M last year. The Zegna segment saw a 14.8% margin, while Thom Browne had a EUR 8M loss due to FX impacts. TOM FORD Fashion improved, with a EUR 12M loss, better than last year's EUR 19M. Profit was EUR 28M, down from EUR 48M last year, affected by FX and tax changes. Free cash flow was EUR 19.9M, up from a EUR 23M absorption last year. Management highlighted strong performance in Zegna and ongoing transformation i

Ermenegildo Zegna N.V. reported Q2 2026 earnings, highlighting high-quality growth in China and a shift to a Direct-to-Consumer (DTC) model, now 86% of branded revenues. Zegna aims for a 15% full-year adjusted EBIT margin, with a long-term goal of 20%. Thom Browne is transitioning to a retail-oriented model, expecting positive EBIT in H2 2026. TOM FORD Fashion is projected to be slightly negative for 2026 but expects positive EBIT in the second half. The group confirmed 2027 guidance of EUR 2.2