ZOZO (3092) Q1 2027 (Q&A) earnings summary

Executive summary

• GMV for the first quarter was on track with internal plans, despite a weak June offset by strong April and May.

• Net sales for Q1 FY2027 rose 3.9% YoY to 56,132 million yen, with operating profit up 5.7% to 17,883 million yen and profit attributable to owners of parent up 4.6% to 11,895 million yen.

• LYST saw a 30% top-line growth in Q1, with organic GMV growth outpacing currency effects.

• The company acquired HIGH LINK, INC., expanding into the fragrance market and consolidating its results from May 2026.

• ZOZOCOSME performed well, meeting budget expectations and expanding brand participation.

Financial highlights

• Gross merchandise value (excluding other GMV) grew 5.1% YoY to 156,694 million yen, while total GMV declined 1.6% due to the discontinuation of certain contracts.

• Adjusted EBITA increased 3.6% YoY to 18,746 million yen, with a margin of 12.0% of gross merchandise value (excluding other GMV).

• Gross profit rose 3.4% YoY to 52,471 million yen, with a gross profit margin of 33.5%, down 0.5 percentage points YoY.

• Selling, general, and administrative expenses increased 2.2% YoY to 34,587 million yen, with improved logistics and shipping costs offsetting higher depreciation and goodwill amortization.

• Earnings per share for Q1 FY2027 was 13.45 yen, up from 12.79 yen YoY.

Outlook and guidance

• July performance is strong, and proactive web advertising and promotions are planned to achieve fiscal year GMV targets.

• Full-year FY2027 guidance maintained: net sales of 241,900 million yen (+5.9% YoY), operating profit of 74,400 million yen (+7.3%), and EPS of 56.20 yen.

• Dividend forecast for FY2027 is 40.00 yen per share, up from 39.00 yen in FY2026.

• LYST expects to meet its fiscal year targets if merchant adoption of the checkout feature progresses as planned.

• No expectation of explosive growth in advertising; packaging ads are growing, but banner and search ads are flat.