Top 12 Luxury Clothing Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 13

Ermenegildo Zegna N.V. (NYSE:ZGN) is a luxury brand that manufactures and designs luxury women’s and children’s wear, luxury menswear, leather goods, footwear, and other accessories under its Zegna and Thom Browne brands. The company is famous for symbolizing iconic Italian luxury menswear. It 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.

Ermenegildo Zegna N.V.’s (NYSE:ZGN) revenues for fiscal year 2024 reflect a 2.2% year-over-year increase from fiscal year 2023. Revenues for fiscal Q4 2024 also underwent a 3.3% year-over-year increase. This growth was attributed to ZEGNA’s direct-to-consumer (DTC) channel, which grew by 11% with double-digit growth in the US and EMEA. Thom Browne and TOM FORD brands also reported positive growth in the DTC channel in the quarter.

Thus, the company has a strategic project pipeline. While it expects ongoing volatility in consumer demand in China, the Americas and EMEA showed solid performance in the company’s brands in the first weeks of January. Ermenegildo Zegna N.V. (NYSE:ZGN) plans to navigate these challenges and focus on long-term growth in 2025 by continuing investments in strategic projects and building on brand equity. It ranks tenth on our list.