New York, Jan 18, 2026, 09:06 EST — Market closed
- ZGN slid 13.25% on Friday to $9.56 after a Bank of America downgrade.
- The analyst flagged growth questions at Thom Browne and Tom Ford Fashion, and tougher margin math.
- U.S. markets are shut Monday; Zegna’s next scheduled update is preliminary FY 2025 revenues on Feb. 2.
Ermenegildo Zegna N.V. shares closed down 13.25% at $9.56 on Friday, snapping a run that had pushed the luxury menswear group above $11 a day earlier. The stock traded between $9.53 and $10.59, with about 2.21 million shares changing hands.
With U.S. markets closed this weekend — and shut again on Monday for Martin Luther King Jr. Day — investors will carry that move into Tuesday’s open with little new tape to dilute it. For Zegna holders, it turns the next session into a straight read on whether the downgrade forces more de-risking or just resets the bar.
Bank of America Securities analyst Daria Nasledysheva cut Zegna to neutral from buy and lowered her price target to $11.20 from $11.50, StreetInsider reported. She wrote the stock now “needs revenue beats and EPS upgrades” — earnings-per-share revisions higher — to keep outperforming, and said BofA trimmed its 2026-27 earnings-before-interest-and-taxes (EBIT) forecasts by 3% to 7%, leaving it 8% to 9% below consensus. The note also pointed to valuation, with the shares trading around 25 times 2026 earnings — the price-to-earnings (P/E) multiple investors pay for a dollar of profit. StreetInsider.com
The timing did not help. European luxury stocks fell on Friday, with the STOXX luxury index down 3.2%, and Richemont off 5.4% after a separate BofA downgrade, Reuters reported. “The margin of safety that investors had previously is gone,” Michael Field, chief European equity strategist at Morningstar, said. Reuters
Zegna also sits in the middle of a leadership handover, which has kept attention on execution. The company last month outlined a succession plan that moved Ermenegildo “Gildo” Zegna into an executive chairman role and appointed finance chief Gianluca Tagliabue as CEO effective Jan. 1, while sons Edoardo and Angelo stepped up to run the flagship Zegna brand, Reuters reported. Reuters
The next hard catalyst is on the calendar. Zegna plans to publish preliminary full-year 2025 revenues on Feb. 2, followed by full-year results on March 20, with a first-quarter 2026 revenue update scheduled for April 30.
Tuesday’s trade is likely to come back to the same two questions BofA raised: can the smaller Thom Browne and Tom Ford Fashion labels lift comparable sales, and can margins widen without a jump in discounting or marketing spend. “Like-for-like” is market shorthand for growth at existing stores and channels, stripping out openings and closures.
But the path is messy. Luxury stocks can swing hard on macro headlines — rates, currency moves and any hint that wealthy shoppers are pulling back — and a holiday-thinned market can exaggerate that.
When trading resumes on Tuesday, investors will be watching for follow-through selling — or bargain hunting — after Friday’s slide. Beyond that, Feb. 2 is the next date circled on screens for Zegna’s revenue pulse heading into the 2026 reporting cycle.
