Top 11 Luxury Clothing Stocks to Invest in Now

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4. Ermenegildo Zegna N.V. (NYSE:ZGN)

Analyst Upside Potential as of September 12, 2024: 28.46%

No. of Hedge Funds as of Q2 2024: 9

Ermenegildo Zegna N.V. (NYSE:ZGN) is a luxury brand that manufactures and designs menswear, leather goods, footwear, and other accessories under its Zegna and Thom Browne brands. It also offers luxury wear for women and children under the Thom Browne brand. However, it is famous for symbolizing iconic Italian luxury menswear. The company also acquired a long-term license for Tom Ford Fashion by the Estée Lauder Companies in 2023. Ermenegildo Zegna N.V. (NYSE:ZGN) operates a vast network of luxury flagship boutiques and concessions and has dressed famous world leaders and celebrities in its quest to solidify its image of Italian luxury. The company is continuing its partnership with Real Madrid, acting as their official luxury travel-wear partner for the 2023-2024 season and dressing one of the largest football teams in the world with its unique style.

The company opened up 24 new stores in Q1 2024, taking its total outlets to 277 globally. Its revenue stood at €463.2 million ($507.3 million), experiencing an 8% year-over-year increase. Revenues from the ZEGNA brand surpassed the growth of the overall segment, growing to €324.9 million ($355.86 million) in Q1 2024 from €319.3 million ($349.73 million) in Q1 2023. Overall, the Americas led the company’s revenues, with a rise in Direct-to-Consumer (DTC) sales being the primary driver.

The company’s revenue grew by a CAGR of 23.14% in the past three years. After delivering double-digital revenue growth in the Thom Browne and Zegna segments, the company has plans in place for continued growth. It is focused on streamlining its wholesale distribution and plans to fill out its management team at Tom Ford Fashion. Its operation plans and market presence give the company a significant edge in increasing its profitability in the long run.

Ermenegildo Zegna N.V. (NYSE:ZGN) ‘s median price target of $11.0 indicates an upside of 28.46% from current levels. The stock sports a Moderate Buy rating among analysts. 9 hedge funds hold Ermenegildo Zegna N.V. (NYSE:ZGN) as of Q2 2024.

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