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

Executive summary

• Gross Merchandise Value (excluding other GMV) reached 156,694 million yen in Q1 FY2027, up 5.1% year-over-year, with strong new member acquisition and feature enhancements such as AI outfit recommendations supporting growth.

• Adjusted EBITA rose 3.6% year-over-year to 18,746 million yen, with a margin of 12.0%.

• Net sales for Q1 FY2027 increased 3.9% to 56,132 million yen, with operating profit up 5.7% and profit attributable to owners of parent up 4.6%.

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

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

Financial highlights

• Gross profit rose 3.4% year-over-year to 52,471 million yen, with a gross profit margin of 33.5%.

• SG&A expenses as a percentage of GMV decreased slightly, reflecting improved operational efficiency.

• Actual promotion-related expenses ratio rose to 4.5% of GMV, up from the previous year.

• Earnings per share for Q1 FY2027 was 13.45 yen, up from 12.79 yen year-over-year.

• Average retail price declined 1.7% year-over-year due to higher sale item proportion and discount rates.

Outlook and guidance

• 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.

• ROE for FY2027 expected to exceed 50%, up from 46.6% in FY2025.

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

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