ZOZO (3092) Q1 2025 earnings summary

Executive summary

• Gross merchandise value (GMV) increased 7.6% year-over-year to ¥141.8 billion for Q1 FY2024, with GMV excluding other GMV up 7.5% to ¥132.6 billion.

• Net sales rose 9.8% year-over-year to ¥50.4 billion, driven by strong consumer demand and promotional events.

• Operating profit was ¥15.8 billion, up 0.2% year-over-year, with a margin of 12.0%, down 0.9 points year-over-year.

• Both GMV and operating profit reached record highs, with demand for spring and summer items recovering from mid-April.

• Net profit attributable to owners of parent slightly declined by 0.8% to ¥11,109 million.

Financial highlights

• Gross profit increased 9.1% year-over-year to ¥46,956 million, with a gross profit margin of 35.4%.

• SG&A expenses rose to ¥31.1 billion, representing 23.4% of GMV, mainly due to higher shipping, payroll, and rent expenses.

• Operating profit margin declined by 0.9 points year-over-year to 12.0% due to increased logistics and shipping costs.

• Promotion-related expenses were 3.3% of GMV in Q1, similar to last year.

• Selling, general and administrative expenses rose 14.3% year-over-year, mainly due to higher shipping, depreciation, and rent.

Outlook and guidance

• Full-year forecast remains unchanged: net sales ¥214.4 billion (+8.8% YoY), operating profit ¥64.2 billion (+6.9% YoY), net profit ¥45.2 billion (+1.9% YoY), EPS ¥152.21.

• Dividend per share for FY2024/FY2025 is planned at ¥107.

• Promotion spending is expected to exceed 4% of GMV for the year, with heavier spending planned for Q3 and Q4.

• No large-scale promotions are planned; focus remains on TV, web, and point-related promotions.

• Average order value is expected to remain flat for the full year.