ZOZO (3092) Q1 2025 earnings summary

Executive summary

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

• 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.

• Net sales for Q1 FY2024 were ¥50.4 billion, up 7.5% year-over-year.

• Demand for spring and summer items recovered from mid-April, supporting record highs in GMV and operating profit.

• All business segments progressed as planned amid normalized temperatures.

Financial highlights

• Gross profits increased due to higher GMV growth in the advertising business and changes to the shipping policy, offsetting higher logistics and shipping costs.

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

• Payroll and staff costs increased to ¥8.3 billion, and shipping costs to ¥9.1 billion.

• Operating profit increased by ¥30 million year-over-year, driven by GMV expansion, advertising sales, and shipping income.

• Profit attributable to owners of parent was ¥11,109 million, down 0.8% year-over-year.

Outlook and guidance

• No change to the full-year consolidated earnings forecast or dividend plan; FY2024 GMV is forecast at ¥609.2 billion (+6.1% YoY), net sales at ¥214.4 billion (+8.8% YoY), and operating profit at ¥64.2 billion (+6.9% YoY) with an operating margin of 11.2%.

• Estimated dividends per share for FY2024 are ¥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 (AOV) is expected to remain flat for the full year.