ZOZO (3092) Q4 2026 (Q&A) earnings summary

Executive summary

• Midterm plan targets JPY 80 billion EBITDA by FY 2029, focusing on Near Fashion, More Fashion, and Global Domain, with incremental annual GMV growth of JPY 20 billion or more.

• Gross merchandise value rose 8.4% year-over-year to ¥666,035 million, with net sales up 7.2% to ¥228,373 million and profit attributable to owners of parent up 5.7%.

• Consolidation of LYST Ltd. contributed to growth but lowered gross profit margin due to its lower commission business model.

• Recent M&A includes the acquisition of HIGH LINK, INC. (fragrance platform) to expand into new product categories and leverage synergies with the existing user base.

• Discontinuation of certain production businesses resulted in extraordinary losses of ¥727 million.

Financial highlights

• Adjusted EBITDA for the previous fiscal year was JPY 76.9 billion, with guidance for JPY 77.9 billion in the current year.

• Operating profit was JPY 69.4 billion, with JPY 2.3 billion in goodwill amortization and about JPY 1 billion in M&A-related costs.

• Gross profit margin declined by 1.5 percentage points to 33.0% due to business mix changes.

• CapEx for the year is JPY 11 billion, with JPY 8 billion allocated to a new logistics center, JPY 2.5 billion for refurbishment, and over JPY 1 billion for offices.

• Cash and cash equivalents at year-end were ¥69,422 million, down ¥22,064 million from the prior year.

Outlook and guidance

• Profit is expected to grow by 3.7% despite 7% GMV growth, due to salary increases and preferential tax treatment.

• For the next fiscal year, net sales are forecast to grow 5.9% to ¥241,900 million, with operating profit up 7.3% to ¥74,400 million and profit attributable to owners of parent up 3.7% to ¥49,700 million.

• EBITDA CAGR is targeted at 5% through FY 2029, with stable annual GMV increments and new domains expected to become profitable.

• CapEx is expected to remain at similar levels (around JPY 11 billion annually) for the next four years, with additional JPY 3-5 billion for other projects.

• Adjusted EBITA is introduced as a new management indicator, targeting ¥90 billion by FY2030.