ZOZO (3092) Q1 2025 earnings summary

Executive summary

• Gross merchandise value (GMV) increased by 7.6% year-over-year to ¥141.8 billion, with net sales up 9.8% to ¥50.4 billion and operating profit rising 0.2% to ¥15.8 billion, achieving a record high.

• Demand for spring and summer items grew from mid-April, supporting business progress in line with plan.

• Growth was driven by strong domestic demand, successful sales events, and expansion in advertising and shipping income.

Financial highlights

• Operating profit margin was 12.0%, down 0.9 points year-over-year, while gross profit margin improved to 35.4%.

• SG&A expenses increased to ¥31.1 billion (23.4% of GMV), mainly due to higher shipping, depreciation, and rent expenses.

• GMV and OP achievement rates against company plan were 23.2% and 24.8%, respectively.

• Gross profit growth was driven by advertising business and shipping policy changes, offsetting higher logistics and shipping costs.

• Cash and deposits decreased by ¥11,190 million from the previous fiscal year-end, contributing to a 6.1% decline in total assets.

Segment performance

• ZOZOTOWN and LY Corporation Commerce GMV expansions contributed ¥2.42 billion to OP growth, with ZOZOTOWN net sales up 7.0% and LY Corporation Commerce up 28.5% year-over-year.

• Advertising business added ¥470 million to OP and net sales rose 22.0% year-over-year.

• Shipping income/policy changes contributed ¥1.11 billion to OP and ¥0.4 billion to gross profit.

• Number of total buyers increased by 110,000 from previous quarter to 11.79 million; active members up by 130,000 to 10.91 million.

• Major new shops opened, including "Her lip to" and "TORY BURCH," with the number of shops on ZOZOTOWN reaching 1,605.