ZOZO (3092) Q4 2025 (Q&A) earnings summary

Executive summary

• Q&A session focused on 2024 full-year outlook, with participation from key executives and corporate planning leadership.

• Institutional investors raised questions on active buyer growth, GMV trends, and the integration of new business models.

• Net sales rose 8.2% year-over-year to 213,131 million yen, with operating profit up 7.8% to 64,756 million yen and net income up 2.3% to 45,346 million yen.

• Gross merchandise value (GMV) increased 7.0% year-over-year, driven by strong performance in ZOZOTOWN and LY Corporation Commerce.

• Key initiatives included expanding ZOZOTOWN's brand lineup, launching new services like "niaulab," and strengthening the cosmetics category.

Financial highlights

• Operating profit margin improved to 11.3% (up 0.1pp), and gross profit margin rose to 34.5% (up 0.4pp) year-over-year.

• EBITDA increased 8.7% to 69,788 million yen; cash and cash equivalents at year-end were 91,486 million yen, up 21,738 million yen.

• Total assets grew 16.0% to 187,810 million yen; net assets rose 16.5% to 98,719 million yen.

• Annual dividend per share (post-split) was 107 yen, with a payout ratio of 70.1%.

• Number of annual buyers and active members on ZOZOTOWN both increased year-over-year.

Outlook and guidance

• Guidance does not yet include the impact of the 'list' business or LYST acquisition; future inclusion will depend on profitability or loss-making status.

• FY2026 guidance: net sales to rise 5.1% to 224,100 million yen, operating profit up 7.8% to 69,800 million yen, and net income up 7.0% to 48,500 million yen.

• GMV expected to grow 1.5% overall, with ZOZOTOWN business up 5.5% and LY Corporation Commerce up 9.3%.

• Management is considering the rollout of a referral/AI agent model in Japan, potentially expanding services to brands not currently on the platform.

• M&A activity is under consideration, with questions raised about the budget for future acquisitions.