ZOZO (3092) Q2 2027 (Q&A) earnings summary

Executive summary

• H1 FY2027 GMV excluding other GMV rose 5.7% YoY to ¥309,290m and Adjusted EBITA increased 5.1% to ¥34,614m; both reached first-half records.

• Net sales rose 5.1% to ¥110,642m; ZOZOTOWN summer demand was weaker than planned, while LY Corporation Commerce exceeded plan.

• Total GMV fell 1.0% YoY, reflecting the end of recording certain Yahoo! JAPAN Shopping store GMV from Sep 2025.

Financial highlights

• Gross profit was ¥102,756m (+4.4% YoY), operating profit ¥32,825m (+5.6%), ordinary profit ¥32,871m (+6.6%) and profit attributable to owners ¥21,751m (+3.5%).

• Adjusted EBITA was ¥34,614m (+5.1% YoY); SG&A rose 3.8% to ¥69,930m, while its ratio to GMV excluding other GMV improved 0.4 points to 22.6%.

• Q2 SG&A other expenses rose mainly from higher packing-material costs starting in June and increased AWS/cloud server usage.

• Operating cash flow was ¥21,502m; investing and financing cash flows were -¥9,643m and -¥47,952m, respectively; period-end cash equivalents were ¥33,308m.

• Adjusted EBITA margin was 11.2% and operating profit margin 10.6% of GMV excluding other GMV, both unchanged YoY; gross profit margin was 33.2%, down 0.4 points.

Outlook and guidance

• FY2027 guidance remains unchanged: net sales ¥241,900m, operating profit ¥74,400m, Adjusted EBITA ¥77,900m, ordinary profit ¥74,400m and net profit attributable to owners ¥49,700m.

• FY2027 EPS is forecast at ¥56.20 and dividends at ¥40 per share; FY2030 Adjusted EBITA target is ¥90bn across More Fashion, Near Fashion and Global.

• H2 margins are expected to be near past levels, with no further cost drivers expected; advertising expenses will rise.

• November ZOZO Week and Black Friday are key sales events; Pokémon T-shirts are performing above initial expectations, with deliveries planned for Q3.