ZOZO (3092) Q1 2025 earnings summary

Executive summary

• Gross merchandise value (GMV) reached a record ¥141.8 billion in 1Q FY2024, up 7.6% year-over-year, with operating profit at a record ¥15.8 billion, up 0.2% year-over-year.

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

• All business segments progressed as planned, supported by strong demand for spring and summer items as temperatures normalized.

• Growth in advertising business and changes in shipping policy contributed to profitability, offsetting higher logistics and shipping costs.

• Buyer numbers and shop count increased, with total buyers reaching 11.8 million and shops on ZOZOTOWN at 1,605.

Financial highlights

• Operating profit margin was 12.0%, down 0.9 points year-over-year.

• GMV (excluding other GMV) was ¥132.6 billion, up 7.5% year-over-year.

• SG&A expenses rose to ¥31.1 billion, 23.4% of GMV (excluding other GMV), up 1.4 points year-over-year.

• Net sales rose 9.8% year-over-year to ¥50,387 million; gross profit increased 9.1% to ¥46,956 million.

• Shipping costs increased to ¥9.1 billion, partly due to higher shipping fees from April 1.

Segment performance

• ZOZOTOWN and LY Corporation Commerce GMV expansions contributed ¥2.42 billion to operating profit growth.

• Advertising business added ¥470 million to operating profit and net sales rose to ¥2,658 million (+22.0% YoY).

• Shipping income and policy changes contributed ¥1.11 billion to operating profit.

• ZOZOTOWN GMV was ¥115,037 million (+6.2% YoY); consignment sales ¥109,542 million (+6.1%), outright purchase/production & sales ¥1,221 million (+0.7%), USED sales ¥4,273 million (+11.5%).

• LY Corporation Commerce GMV was ¥14,429 million (+24.3% YoY); BtoB business GMV was ¥3,164 million (-8.1% YoY).