ZOZO (3092) investor relations material

Executive summary

• Gross Merchandise Value (GMV) reached ¥666,035 million, up 8.4% year-over-year, driven by ZOZOTOWN and LY Corporation Commerce, though LYST underperformed due to luxury market weakness and U.S. tariff changes.

• Net sales rose 7.2% year-over-year to ¥228,373 million, with operating profit up 7.1% to ¥69,366 million and profit attributable to owners of parent up 5.7% to ¥47,926 million.

• EBITDA and profit attributable to owners of parent hit record highs, with EBITDA up 10.2% year-over-year to ¥76,924 million and an EBITDA margin of 11.9%.

• The company acquired LYST LTD and HIGH LINK, INC., consolidated LYST from May 2025, and discontinued certain production businesses, recording extraordinary losses.

• Strong winter sales in Q4 offset earlier shortfalls, and a three-for-one stock split was conducted on April 1, 2025.

Financial highlights

• Net sales rose 7.2% year-over-year to ¥228,373 million; operating profit increased 7.1% to ¥69,366 million.

• EBITDA grew 10.2% year-over-year to ¥76,924 million; EBITDA margin was 11.9%.

• Gross profit margin declined by 1.5 percentage points to 33.0% due to business mix changes from LYST consolidation.

• SG&A expenses rose 7.5% year-over-year, but the SG&A-to-GMV ratio declined by 1.0 percentage point to 22.2%.

• Cash and cash equivalents at year-end were ¥69,422 million, down from ¥91,486 million.

Outlook and guidance

• FY2026 GMV (excluding other GMV) is forecast to grow 5.0% year-over-year; Adjusted EBITA is expected to rise 7.2%.

• Net sales for the next fiscal year are forecast to rise 5.9% to ¥241,900 million, with operating profit up 7.3% and profit attributable to owners of parent up 3.7%.

• Adjusted EBITA is introduced as a new management indicator, with a medium-term target of ¥90 billion by FY2030.

• HIGH LINK, INC. will be consolidated from May 2026, impacting the "Others" segment.

• Estimated dividend per share for FY2026 is 40.0 yen.