ZOZO (3092) Q2 2027 earnings summary

Executive summary

• H1 GMV excluding other GMV rose 5.7% YoY to ¥309,290 million, a first-half record; reported GMV fell 1.0% to ¥309,433 million after certain Yahoo! JAPAN Shopping store GMV stopped being recorded.

• Adjusted EBITA increased 5.1% to ¥34,614 million, also a first-half record, with an 11.2% margin.

• H1 net sales rose 5.1% to ¥110,642 million; operating profit increased 5.6% to ¥32,825 million and net profit attributable to owners rose 3.5% to ¥21,751 million.

Financial highlights

• Gross profit rose 4.4% YoY to ¥102,756 million; SG&A increased 3.8% to ¥69,930 million.

• Ordinary profit increased 6.6% to ¥32,871 million; EPS was ¥24.74 versus ¥23.68 a year earlier.

• Adjusted EBITA growth reflected gross profit gains and lower variable logistics costs, partly offset by fixed costs, promotion spending and other expenses.

• Operating cash flow increased ¥4.2 billion YoY, mainly on higher H1 profit before income taxes.

• Comprehensive income fell 3.6% to ¥21,330 million, mainly due to foreign currency translation adjustment of -¥379 million versus +¥1,127 million a year earlier.

Outlook and guidance

• FY2027 forecast unchanged: GMV excluding other GMV ¥678.6 billion (+5.0%), net sales ¥241.9 billion (+5.9%), and adjusted EBITA ¥77.9 billion (+7.2%).

• FY2027 operating profit and ordinary profit are forecast at ¥74.4 billion each; net profit at ¥49.7 billion, EPS at ¥56.20 and dividends at ¥40 per share.

• H1 promotional spending was below plan partly because Q1 initiatives were postponed; spending is expected to rise from Q3, with FY spending expected to be similar to last year at ~4.8% of GMV.

• LYST plans faster H2 onboarding for its new platform checkout service after new-brand acquisition lagged plan.