ZOZO (3092) Q4 2026 earnings summary

Executive summary

• GMV increased 8.4% year-over-year to ¥666,035 million, driven by ZOZOTOWN and LY Corporation Commerce, though slightly below plan; EBITDA and profit attributable to owners hit record highs, supported by strong winter sales and cost efficiencies.

• EBITDA margin was 11.9%, with improved logistics efficiency and lower shipping costs aiding profitability.

• The company acquired LYST LTD and HIGH LINK, INC., expanding into global and fragrance markets, while discontinuing certain in-house production businesses and incurring extraordinary losses.

• Medium-term plan targets adjusted EBITDA of ¥90 billion by FY 2029/2030, focusing on core, peripheral, and global fashion domains.

Financial highlights

• Net sales rose 7.2% year-over-year to ¥228,373 million; operating profit increased 7.1% to ¥69,366 million; EBITDA grew 10.2% to ¥76,924 million.

• Gross profit margin declined to 33.0% due to business mix changes; SG&A-to-GMV ratio improved by 1.0 point to 22.2%.

• Profit attributable to owners was ¥47,926 million, up 5.7% year-over-year.

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

• Extraordinary losses of ¥727 million were recorded from impairment and business liquidation.

Outlook and guidance

• FY 2026 GMV is expected to rise 2.0% year-over-year to ¥679.6 billion, with net sales forecast to grow 5.9% to ¥241,900 million.

• Adjusted EBITDA is forecast to increase 7.2% year-over-year to ¥77,900 million, with a margin of 11.5%.

• Dividend payout ratio target remains above 70%, with a planned dividend of ¥40 per share.

• HIGH LINK, INC. will be consolidated from May 2026, impacting the "Others" segment.