ZOZO (3092) Q2 2025 (Q&A) earnings summary

Executive summary

• Productivity improvements in logistics and SG&A outpaced expectations in the first half, with net sales rising 9.5% year-over-year to ¥98,801 million and operating profit up 5.3% to ¥30,475 million.

• Gross merchandise value increased 7.9% year-over-year to ¥279,153 million, driven by strong consumer demand, successful sales events, and efficient promotional activities.

• AI-driven personalization and recommendation tools delivered significant conversion rate improvements and measurable GMV impact.

• Category expansion, especially in cosmetics (ZOZOCOSME), is progressing steadily with over 750 brands and a growing user base.

• Growth was supported by advertising business expansion, increased shipping income, and higher consignment sales.

Financial highlights

• Variable cost savings in payroll, promotion, and shipping were realized in the first half, with plans to utilize these savings in the second half, resulting in no annual impact.

• Operating profit margin was 11.7% of gross merchandise value (excluding other GMV), down 0.3 percentage points year-over-year.

• SG&A expenses rose 11.3% year-over-year, mainly due to higher shipping, depreciation, and rent costs.

• Cash and cash equivalents at period end were ¥72,651 million, up ¥2,903 million from the previous year.

• Cash flow from operating activities increased 49.6% year-over-year to ¥23,350 million.

Outlook and guidance

• Full-year net sales forecast is ¥214,400 million (+8.8% YoY), with operating profit and ordinary profit both projected at ¥64,200 million (+6.9% and +7.4% YoY, respectively).

• Net profit attributable to owners of parent is forecast at ¥45,200 million (+1.9% YoY), with EPS of ¥152.21.

• Promotional spending and cost savings from the first half will be deployed in the second half, maintaining annual targets.

• No changes to previously announced business forecasts.

• Growth in cosmetics and other categories is on track, with further updates expected at the full-year briefing.