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

Executive summary

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

• 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.

• Growth was driven by strong consumer demand, successful sales events, and expansion in advertising and shipping income.

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

• Cost reductions achieved through lower one-off expenses and improved cost management, especially in logistics and AWS fees.

Financial highlights

• Gross merchandise value reached 461,171 million yen (+8.0% YoY), with net sales at 161,076 million yen (+9.2% YoY) and gross profit at 150,062 million yen (+9.3% YoY).

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

• Operating profit margin improved to 12.0% (+0.6pp YoY), and gross profit margin rose to 34.7% (+0.3pp YoY).

• EPS for the period was 121.04 yen, up from 108.31 yen a year earlier.

• Advertising business performed strongly in Q3, with high demand from brands and net sales up 21.0% YoY.

Outlook and guidance

• Full-year forecast for FY ending March 31, 2025: net sales of 214,400 million yen (+8.8% YoY), operating profit of 64,200 million yen (+6.9% YoY), and net profit attributable to owners of parent of 45,200 million yen (+1.9% YoY).

• No change to consolidated business forecast or previously announced guidance; 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.

• No major new promotional strategies planned; focus remains on personalized and segmented promotions.

• Considering expansion into non-fashion categories such as furniture and miscellaneous goods in the next fiscal year.