ZOZO (3092) investor relations material

Executive summary

• Q1 results showed record high GMV (excluding other GMV) at 156,694 million yen, up 5.1% year-over-year, and record adjusted EBITA at 18,746 million yen, up 3.6% year-over-year, despite total GMV declining 1.6% due to weaker summer demand and contract removals.

• Net sales rose 3.9% year-over-year to 56,132 million yen, with operating profit up 5.7% to 17,883 million yen and profit attributable to owners of parent up 4.6% to 11,895 million yen.

• Share repurchase and cancellation program up to 30 billion yen or 43 million shares announced, with all shares to be cancelled by January 29, 2027, aiming to enhance capital efficiency and shareholder returns.

• Acquisition of HIGH LINK, INC. (Coloria) completed in April 2026 and consolidated from May 2026, increasing goodwill and synergies with ZOZOTOWN.

• Progress on midterm management plan, operational efficiency, and new service launches, including AI-powered outfit recommendations and fashion/makeup video integration.

Financial highlights

• Adjusted EBITA margin was 12.0%, down 0.1 point year-over-year; gross profit margin declined to 33.5% from 34.0% year-over-year.

• SG&A expenses increased 2.2% year-over-year but improved as a percentage of GMV to 22.1%, down 0.6 points.

• Average retail price declined 1.7% year-over-year to 3,682 yen; average order value was 8,506 yen, down 0.4% year-over-year.

• Achievement rate for GMV excluding other GMV was 23.1%, and 24.1% for adjusted EBITA against annual plans.

• Earnings per share for Q1 FY2027 was 13.45 yen, up from 12.79 yen year-over-year.

Outlook and guidance

• Full-year guidance maintained: net sales 241,900 million yen (+5.9% YoY), operating profit 74,400 million yen (+7.3%), profit attributable to owners of parent 49,700 million yen (+3.7%), EPS 56.20 yen.

• GMV for Lyst expected to remain flat for the year, with focus on expanding checkout functionality and merchant opt-ins.

• Dividend payout ratio to remain at 70%, with estimated dividends per share at 40.0 yen.

• Medium-term plan targets adjusted EBITA of 90.0 billion yen by FY2030.