ZOZO (3092) investor relations material

Executive summary

• Net sales for Q1 FY2026 rose 7.2% YoY to 54,028 million yen, with GMV up 12.2% YoY to 159,263 million yen.

• First quarter GMV for Zozotown slightly undershot the plan due to unplanned large-scale promotions, but overall performance remains in line with expectations.

• Profit exceeded the original plan, driven by deferred promotion expenses and improved operational efficiency, especially in logistics.

• LYST LTD was acquired in April 2025 and consolidated from May, marking a strategic move for global expansion.

• The business strategy for List remains organic, with expectations of flat performance and controlled advertising expenses to manage the bottom line.

Financial highlights

• Gross profit margin declined 1.4 pts YoY to 34.0% due to LYST's lower commission model.

• EBITDA rose 8.9% YoY to 18,577 million yen; EBITDA margin was 12.5% of GMV (excluding other GMV), down 0.4 pts YoY.

• Deferred promotion expenses from Q1 to Q2 contributed to higher-than-expected profit.

• List's goodwill amortization was slightly revised, with minimal impact on the overall plan.

• SG&A expenses increased 9.0% YoY, but SG&A-to-GMV ratio improved by 0.7 pts due to LYST's cost structure.

Outlook and guidance

• FY2026 net sales forecast revised to 231,500 million yen (+8.6% YoY); operating profit to 69,200 million yen (+6.9% YoY).

• Profit attributable to owners of parent projected at 47,800 million yen (+5.4% YoY); EPS forecast at 53.66 yen.

• Operational efficiency improvements in logistics are expected to level off from Q2 onward.

• Promotional expenses for List are expected to remain at 8% of GMV next year, with platform improvements taking more time.

• List is expected to remain in a loss-making phase due to ongoing investments, but efficiency improvements and top-line growth are targeted for midterm margin improvement.