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

Executive summary

• Net sales for the semi-annual period rose 9.5% year-over-year to ¥98,801 million, with gross profit up 9.3% to ¥92,013 million and operating profit up 5.3% to ¥30,475 million.

• Gross merchandise value for FY2024 2Q reached ¥279,153 million, up 7.9% year-over-year, driven by strong consumer demand, successful sales events, and an achievement rate of 45.8%.

• Productivity improvements in logistics and SG&A outpaced expectations, with AI-driven personalization and recommendation tools delivering significant conversion rate improvements and measurable GMV impact.

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

• New measurement technologies, including ZOZOMETRY and ZOZOMAT for Kids, were launched, enhancing customer experience.

Financial highlights

• Operating profit margin was 11.7% of GMV, down 0.3 percentage points year-over-year.

• SG&A expenses increased to ¥61.5 billion, representing 23.6% of GMV, 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.

• 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.

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.

• Estimated dividends per share are planned at 107 yen.

• 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.