- Zozo’s operating income in the first quarter was 16.92 billion yen, exceeding the estimate of 15.95 billion yen, and showing a year-over-year increase of 6.4%.
- Net sales reached 54.03 billion yen, a 7.2% increase from the previous year, surpassing the estimated 53.58 billion yen.
- ZOZOTOWN’s revenue was 37.49 billion yen, growing by 3.4% year-over-year but below the forecast of 38.1 billion yen.
- The BtoB Business saw a significant decline in revenue, falling 28% year-over-year to 373 million yen, although it still exceeded the estimate of 346.3 million yen.
- Advertisement revenue amounted to 2.91 billion yen, a 9.4% increase from the prior year and above the estimate of 2.76 billion yen.
- The first quarter net income was reported at 11.38 billion yen, up by 2.4% year-over-year, slightly beating the estimate of 11.16 billion yen.
- The total transaction value for the period was recorded at 159.26 billion yen, marking a 12% increase year-over-year.
- For 2026, Zozo forecasts net sales to be 231.50 billion yen, up from a previous forecast of 224.10 billion yen, and surpassing the estimated 227.53 billion yen.
- Operating income for 2026 is projected at 69.20 billion yen, adjusted from the earlier projection of 69.80 billion yen, with an estimate of 69.97 billion yen.
- Net income for 2026 is forecasted at 47.80 billion yen, revised from an earlier outlook of 48.50 billion yen, compared to an estimate of 49.05 billion yen.
- Zozo maintains the forecast of their dividend at 39.00 yen, matching closely with the estimate of 39.05 yen.
- A revised business plan for LYST and allocation procedures guided adjustments in consolidated performance forecasts, modifying figures from April 30, 2025.
- Current market analysis shows 1 buy, 12 holds, and 5 sell recommendations for Zozo.
“`
ZOZO Inc on Smartkarma
Analysts on Smartkarma, such as Michael Causton, are closely following ZOZO Inc‘s recent acquisition of Lyst. Causton’s research highlights the strategic benefits of this move, emphasizing how it will open new markets for Japanese and international brands. The acquisition is seen as timely, especially amid a slight slowdown in online sales in Japan. By incorporating Lyst into its portfolio, ZOZO is set to strengthen its presence in Europe and the US, creating synergies that could drive e-commerce sales growth significantly.
The acquisition is expected to streamline cross-border selling, making it easier for Japanese brands to reach overseas markets while also facilitating European and US brands’ entry into Japan. With a bullish sentiment towards ZOZO Inc‘s strategic expansion through the acquisition of Lyst, analysts like Michael Causton perceive this as a pivotal step that could enhance the company’s global footprint and revenue streams, particularly in the face of evolving e-commerce dynamics.
A look at ZOZO Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts indicate a positive long-term outlook for ZOZO Inc, a company operating online shopping platforms specializing in apparel. With a strong score of 5 in resilience, ZOZO Inc demonstrates robustness and adaptability in the face of challenges. This high score suggests that the company is well-equipped to navigate uncertainties and maintain stability in the market.
Additionally, ZOZO Inc shows promising growth potential with a score of 4 in that category, highlighting opportunities for expansion and development. Coupled with a respectable score of 3 in both value and momentum, ZOZO Inc is positioned to deliver solid performance in the foreseeable future. Although the dividend score sits at 3, the overall Smartkarma Smart Scores paint a favorable picture for ZOZO Inc, pointing towards a bright outlook for investors in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
