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Ermenegildo Zegna NV (Ermenegildo Zegna NV) Gross Margin % : 64.35% (As of Dec. 2023)


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What is Ermenegildo Zegna NV Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ermenegildo Zegna NV's Gross Profit for the six months ended in Dec. 2023 was $703 Mil. Ermenegildo Zegna NV's Revenue for the six months ended in Dec. 2023 was $1,092 Mil. Therefore, Ermenegildo Zegna NV's Gross Margin % for the quarter that ended in Dec. 2023 was 64.35%.


The historical rank and industry rank for Ermenegildo Zegna NV's Gross Margin % or its related term are showing as below:

ZGN' s Gross Margin % Range Over the Past 10 Years
Min: 47.03   Med: 56.47   Max: 64.28
Current: 64.28


During the past 6 years, the highest Gross Margin % of Ermenegildo Zegna NV was 64.28%. The lowest was 47.03%. And the median was 56.47%.

ZGN's Gross Margin % is ranked better than
93.6% of 1032 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.35 vs ZGN: 64.28

Ermenegildo Zegna NV had a gross margin of 64.35% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ermenegildo Zegna NV was 6.30% per year.


Ermenegildo Zegna NV Gross Margin % Historical Data

The historical data trend for Ermenegildo Zegna NV's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ermenegildo Zegna NV Gross Margin % Chart

Ermenegildo Zegna NV Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 48.42 47.03 61.64 62.16 64.28

Ermenegildo Zegna NV Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only 71.50 61.57 62.73 64.21 64.35

Competitive Comparison of Ermenegildo Zegna NV's Gross Margin %

For the Apparel Manufacturing subindustry, Ermenegildo Zegna NV's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ermenegildo Zegna NV's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ermenegildo Zegna NV's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ermenegildo Zegna NV's Gross Margin % falls into.



Ermenegildo Zegna NV Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Ermenegildo Zegna NV's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1335.1 / 2076.935
=(Revenue - Cost of Goods Sold) / Revenue
=(2076.935 - 741.805) / 2076.935
=64.28 %

Ermenegildo Zegna NV's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=702.8 / 1092.137
=(Revenue - Cost of Goods Sold) / Revenue
=(1092.137 - 389.32) / 1092.137
=64.35 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Ermenegildo Zegna NV  (NYSE:ZGN) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Ermenegildo Zegna NV had a gross margin of 64.35% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Ermenegildo Zegna NV Gross Margin % Related Terms

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Ermenegildo Zegna NV (Ermenegildo Zegna NV) Business Description

Traded in Other Exchanges
Address
99/100 Viale Roma, Valdilana location, Trivero, ITA, 13835
Ermenegildo Zegna NV designs, creates and distributes luxury menswear and accessories under the Zegna brand, as well as womenswear, menswear and accessories under the Thom Browne brand. It operates in two segments: the Zegna segment (comprising three product lines: Zegna Branded Products, Textile and Third Party Brands) and the Thom Browne segment.