Opinions
Jim Cramer - Mad Money
Ermenegildo Zegna NV
ZGN-N
DON'T BUY
Dec 06, 2024
N/A
Stock price when the opinion was issued
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They're transitioning from high-end menswear to diversified apparel, like LVMH, which is why they bought Tom Ford and Thom Browne. Also, are moving big into footwear. But their execution has been uneven. Last year, they grew, but not this year at all. First 9 months of 2024, organic sales were -4%, including Thom Browne -27%. Though Asia Pacific boasts the most sales, but is that due to a soft Chinese economy or a larger structural problem. He doesn't know. Consensus sales are flat. Sales, he thinks, will bottom this year then rebound a modest 3-4% in 2025, then 5% in 2026, with high-double digit earnings growth in the next two years. He likes their strategic plan and suits, but he's not a complete believer. Has doubts.