ZOZO, Inc. (3092): FY2025 Results Summary — Record GMV, EBITDA and Net Profit in First Year with LYST

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ZOZO, Inc. (3092), operator of ZOZOTOWN, the largest fashion e-commerce website in Japan, reported consolidated FY2025 results based on its earnings presentation “FY2025 ZOZO, Inc. CONSOLIDATED BUSINESS RESULTS.” Note: ZOZO labels the fiscal year ended March 31, 2026 as FY2025, and this article follows the company’s labeling. Gross Merchandise Value (GMV) reached 666,035 million yen (+8.4% YoY), EBITDA 76,924 million yen (+10.2% YoY), and profit attributable to owners of the parent 47,926 million yen (+5.7% YoY) — all new record highs. GMV was below plan, mainly because LYST fell short of plan due to weakness in the luxury market and changes in U.S. tariff policies, while EBITDA and profit attributable to owners of the parent met the plan.

Consolidated Results (Full-Year Actual)

Net sales rose to 228,373 million yen (+7.2% YoY) and gross profit to 213,000 million yen (+7.4% YoY), while the gross profit margin to GMV declined 1.5 points to 33.0%, reflecting changes in the business composition associated with the consolidation of LYST. Operating profit was 69,366 million yen (+7.1% YoY) and ordinary profit 69,261 million yen (+6.7% YoY). Against the revised targets disclosed on July 31, 2025, achievement rates were 98.8% for GMV, 100.2% for operating profit, 100.3% for EBITDA, and 100.3% for profit attributable to owners of the parent. The EBITDA margin (to GMV excluding other GMV) was 11.9%, versus 12.1% for FY2024. Profit attributable to owners of the parent met the plan despite extraordinary losses associated with the decision to discontinue the production business, supported by the application of tax credits, including those under the wage increase tax incentive program.

Item (million yen)	FY2024	FY2025	YoY
Gross Merchandise Value	614,361	666,035	8.4%
Gross Merchandise Value (excluding other GMV)	574,666	646,162	12.4%
Net sales	213,131	228,373	7.2%
Gross profit	198,312	213,000	7.4%
SG&A	133,556	143,637	7.5%
Operating profit	64,756	69,366	7.1%
EBITDA	69,788	76,924	10.2%
Ordinary profit	64,888	69,261	6.7%
Profit attributable to owners of parent	45,346	47,926	5.7%

Segment Results

By business, the ZOZOTOWN business posted GMV of 516,613 million yen (+5.0% YoY), within which consignment sales grew to 492,743 million yen (+5.2% YoY) and USED sales to 21,074 million yen (+7.3% YoY), while Outright Purchase / Production & Sales declined to 2,795 million yen (-24.3% YoY). LY Corporation Commerce (the combined total of Yahoo! JAPAN Shopping and Yahoo! JAPAN Auction) grew 13.4% YoY to 78,926 million yen, and LYST, consolidated during the year, contributed GMV of 42,245 million yen. The BtoB business fell 36.1% YoY to 8,377 million yen. The combined total of the ZOZOTOWN business, LY Corporation Commerce, and the BtoB business was 603,917 million yen (+5.1% YoY) and achieved plan; in the fourth quarter, strong sales during the winter sale event offset the shortfall accumulated through the first three quarters. Net sales of the advertising business rose 6.0% YoY to 11,884 million yen. Average order value was 8,864 yen (-1.3% YoY) and average retail price 3,974 yen (-1.6% YoY).

Business	Metric	FY2025	YoY
ZOZOTOWN Business	Gross Merchandise Value	516,613 million yen	+5.0%
— Consignment sales	Gross Merchandise Value	492,743 million yen	+5.2%
— Outright Purchase / Production & Sales	Gross Merchandise Value	2,795 million yen	-24.3%
— USED sales	Gross Merchandise Value	21,074 million yen	+7.3%
LY Corporation Commerce	Gross Merchandise Value	78,926 million yen	+13.4%
LYST	Gross Merchandise Value	42,245 million yen	—
BtoB Business	Gross Merchandise Value	8,377 million yen	-36.1%
Others	Gross Merchandise Value	19,872 million yen	—
Total Gross Merchandise Value	Gross Merchandise Value	666,035 million yen	+8.4%
Advertising business	Net sales	11,884 million yen	+6.0%

FY2026 Forecast

For FY2026, ZOZO forecasts GMV of 679.6 billion yen (+2.0% YoY) and GMV excluding other GMV of 678.6 billion yen (+5.0% YoY), with net sales of 241.9 billion yen (+5.9% YoY), operating profit of 74.4 billion yen (+7.3% YoY), ordinary profit of 74.4 billion yen (+7.4% YoY), and profit attributable to owners of the parent of 49.7 billion yen (+3.7% YoY). The company has decided to adopt Adjusted EBITA as a new key indicator — calculated as operating profit plus amortization of goodwill (including amortization of intangible assets recognized through purchase price allocation) plus M&A-related expenses — in order to more appropriately present the group’s underlying earnings power; the FY2026 target is 77.9 billion yen (+7.2% YoY), with an Adjusted EBITA margin of 11.5% to GMV. HIGH LINK, INC. is scheduled to be consolidated from May 2026, with its GMV and net sales recorded under the Others segment, and the estimated impact has already been incorporated into this plan. Disclosure of GMV (excluding other GMV) will be continued for the fiscal year ending March 31, 2027 and is scheduled to be discontinued from the fiscal year ending March 31, 2028 onward.

Item	FY2026 Target	YoY
Gross Merchandise Value	679.6 billion yen	2.0%
Gross Merchandise Value (excluding other GMV)	678.6 billion yen	5.0%
Net sales	241.9 billion yen	5.9%
Operating profit	74.4 billion yen	7.3%
Adjusted EBITA	77.9 billion yen	7.2%
Ordinary profit	74.4 billion yen	7.4%
Profit attributable to owners of parent	49.7 billion yen	3.7%
Net profit per share	56.20 yen	–
Estimated dividends per share (Plan)	40.0 yen	–

Shareholder Returns

Dividends per share are planned at 39.0 yen for FY2025 (payout ratio 72.1%), up from 35.6 yen for FY2024 (payout ratio 70.1%), and are estimated at 40.0 yen for FY2026 (payout ratio 71.2%). In cash flows, the change in cash flows from financing activities versus the previous year reflected expenditures related to the acquisition of treasury stock.

Topics

Topics disclosed in the presentation include: ZOZOTOWN opened its first pop-up store in Nagoya, “ZOZOTOWN NAGOYA” (February 2026); the company entered into a Loan Agreement with Financial Covenants (Commitment Line Agreement) (March 2026); support for “Apps in ChatGPT” was enabled, providing outfit recommendations from “WEAR by ZOZO” and item information from “ZOZOTOWN” seamlessly on ChatGPT (March 2026); “All ZOZO AI Readiness Score (AZARS),” the company’s own AI utilization metric, was introduced (April 2026); “Lab-kun, ZOZO’s outfit recommendation AI,” a LINE official account, was launched (April 2026); the dating app ZOZOMATCH will be discontinued as of June 1, 2026 (April 2026); “ZOZOBASE NARASHINO 3,” a new logistics center aimed at achieving approximately 50% labor savings, is scheduled to begin full-scale operations in October 2028 (April 2026); and the company acquired all shares of HIGH LINK, INC., operator of the comprehensive fragrance platform “Coloria,” making it a wholly owned subsidiary (April 2026). As of the end of FY2025, the group had 1,876 employees on a consolidated basis (FY2024: 1,738), 1,710 shops on ZOZOTOWN, and 11,247 brands handled, with ZOZOTOWN total buyers of 13.1 million on a one-year basis.

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.