ZOZO (3092) Q1 2025 (Q&A) earnings summary

Executive summary

• Net sales rose 9.8% year-over-year to ¥50,387 million for the first quarter ended June 30, 2024, driven by strong domestic demand and successful promotional events.

• Gross Merchandise Value (GMV) for FY2024 1Q reached ¥141.8 billion, up 7.6% year-over-year, with operating profit at ¥15.8 billion, a 0.2% increase year-over-year.

• Operating profit margin declined by 0.9 points year-over-year to 12.0%.

• Q&A session addressed key operational and financial questions for the first quarter of FY2024, focusing on depreciation, user demographics, marketing effectiveness, and shipping costs.

• Gross profit margin improved by 0.5 percentage points to 35.4% due to growth in advertising and increased shipping income.

Financial highlights

• Gross profit rose 9.1% year-over-year to ¥46,956 million.

• SG&A expenses increased to ¥31.1 billion, representing 23.4% of GMV (excluding other GMV), with a 14.3% year-over-year rise.

• Actual promotion-related expenses ratio remained stable at 5.4% of GMV (excluding other GMV).

• Net profit per share was ¥37.41, nearly flat year-over-year.

• Comprehensive income was ¥11,278 million, down 1.0% year-over-year.

Outlook and guidance

• FY2024 full-year GMV forecast is ¥609.2 billion (+6.1% YoY), with operating profit projected at ¥64.2 billion (+6.9% YoY).

• Full-year net sales forecast is ¥214,400 million (+8.8% YoY), with net profit attributable to owners of parent forecast at ¥45,200 million (+1.9% YoY), and EPS of ¥152.21.

• Estimated dividends per share at ¥107, reflecting a 1.9% year-over-year increase.

• No changes to previously announced guidance.