ZGN Earnings Prediction
The chart below shows how ZGN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ZGN sees a -2.29% change in stock price 10 days leading up to the earnings, and a -1.57% change 10 days following the report. On the earnings day itself, the stock moves by +4.23%. This data can give you a slight idea of what to expect for the next quarter's release.
ZGN Key Earning Data
2024/Q4
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Gross Margin
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Operating Margin
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Net Margin
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EPS
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ZGN Earnings Analysis
Ermenegildo Zegna NV Corporation (ZGN.N) Earnings Conference Call
Positive
Adjusted EBIT Resilience: Despite challenges, the company delivered an adjusted EBIT of million, showcasing resilience and strength in navigating difficult circumstances.
Show Acclaim and Customer Interest: The recent Tom Ford show received significant acclaim, being recognized as one of the best of the season, which has generated increased customer interest in the collection.
Brand Commitment and Expansion: Tom Browne's February show confirmed the brand's commitment to high-quality craftsmanship and distinctive tailoring, with plans for new store openings in key U.S. locations.
Market Engagement Success: The exclusive collection from Celia and the innovative advertising campaign attracted both existing and new customers, indicating strong market engagement.
Sustainability Initiatives: The company is committed to sustainability, with initiatives such as the appointment of the first twenty Maestri to preserve unique craftsmanship and a focus on traceable raw materials.
Gross Margin Achievement: The group achieved a gross margin of 67% and a gross profit of $1,297,000,000, reflecting effective inventory management and a shift towards direct-to-consumer sales.
Strategic Marketing Investment: Marketing expenses were strategically increased to support brand growth, with a focus on maintaining a strong presence in the market despite economic challenges.
Profit and Dividend Distribution: The company reported a profit of $90,900,000 for the year, with a proposed dividend distribution of $0.12 per share, indicating financial stability and shareholder value.
Capital Expenditure Projections: CapEx for 2025 is expected to remain in the range of 6% to 7%, with significant investments in production and distribution, including a new factory in Parma set to be completed by 2026.
Negative
Challenging Financial Results: Despite achieving an adjusted EBIT of AED 184 million, the company expressed dissatisfaction with the overall financial results, indicating that 2024 was a challenging year.
Negative Trend in Greater China: The company anticipates a continued negative trend in Greater China, particularly in Hong Kong, which is expected to impact revenue growth in 2025.
EBIT Decline Analysis: The adjusted EBIT for the group decreased from EUR 220 million in 2023 to EUR 184 million in 2024, reflecting a challenging sector environment and the decision to streamline the wholesale business.
Revenue Decline and Cost Control: Thom Browne's segment experienced a significant revenue decline of 21% organic versus 2023, which was only partially mitigated by cost control actions.
SG&A Expense Increase: The SG&A expenses increased to 51.8% of revenues in 2024, up from 47.3% in 2023, primarily due to investments in talent and organization, as well as the expansion of the store network.
Debt Level Increase: The company reported a net financial indebtedness of $94 million at the end of December 2024, compared to EUR 11 million at the end of 2023, indicating a significant increase in debt levels.
Increased Effective Tax Rate: The effective tax rate increased to 30% in 2024, compared to 20% in the prior year, which may impact net profits going forward.
ZGN FAQs
How does ZGN typically perform around its earnings report dates?
Is Ermenegildo Zegna NV (ZGN) Q4 2024 Earnings Call Summary positive or negative?
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ZGN Earning Call Sentiment
Earnings call transcript: Xenia Group Q4 2024 beats forecasts, stock surges
ZGN.N
-1.03%Positive
The earnings call summary indicates challenges such as declining wholesale revenues, operational difficulties, and a negative trend in China. Despite some positive aspects like DTC growth and increased gross margins, the Q&A session highlights concerns about the U.S. market and unclear management responses. The market cap suggests moderate volatility, leading to a predicted stock price movement in the negative range (-2% to -8%).
