ZOZO (3092) Q3 2025 (Q&A) earnings summary

Executive summary

• Operational efficiency improved in logistics centers, reducing payroll costs despite higher transaction volumes.

• Black Friday event saw a stronger response than last year, aided by effective promotions and growing recognition in Japan.

• Net sales for the third quarter ended December 31, 2024, rose 9.2% year-over-year to 161,076 million yen, with operating profit up 13.3% to 51,761 million yen and net profit attributable to owners of parent up 10.7% to 35,943 million yen.

• Achieved highest-ever "AAA" MSCI ESG rating at the end of 2024, reflecting ongoing SDG initiatives.

• The ZOZOTOWN business saw increased annual buyers and active members, supported by marketing campaigns and new brand additions.

Financial highlights

• Gross Merchandise Value (GMV) for 3Q FY2024 reached ¥182.0 billion, up 8.4% year-over-year.

• Net sales for 3Q FY2024 were ¥62.3 billion, a 8.6% increase year-over-year.

• Operating profit for 3Q FY2024 was ¥21.3 billion, up 26.9% year-over-year, with a margin of 12.4%.

• Payroll in logistics centers dropped from JPY 5.7 billion to JPY 4.8 billion year-over-year.

• Advertising business performed strongly in Q3, with high demand from brands.

Outlook and guidance

• FY2024 GMV forecast is ¥609.2 billion (+6.1% YoY), with net sales of ¥214.4 billion (+8.8% YoY).

• Operating profit projected at ¥64.2 billion (+6.9% YoY), with an operating margin of 11.2%.

• No change to consolidated business forecast; confident in meeting targets even with a 14% shortfall in Q4.

• Promotional budget will be fully utilized in Q4, with increased frequency of existing campaigns.

• Estimated dividend per share is ¥107.