ZOZO First-Half Revenue Rises 5.1% to ¥110.642 Billion
Key Facts
On October 29, ZOZO reported first-half results for its fiscal year ending in March 2027, covering the period from April 1 to September 30, 2026. Revenue was ¥110.642 billion, up 5.1% year on year, while operating profit rose 5.6% to ¥32.825 billion. Net profit attributable to owners of the parent increased 3.5% to ¥21.751 billion. Operating profit growth thus outpaced revenue growth, while net profit growth was slower than both. The reported results cover six months, not the second quarter alone.
Compared with the first half of the previous fiscal year, operating profit growth accelerated from 2.0% to 5.6%, despite revenue growth slowing from 6.5% to 5.1%. The company then recorded revenue of ¥105.249 billion and operating profit of ¥31.074 billion. Net profit also turned from a year-on-year decline of 0.6% to growth of 3.5%, rising from ¥21.006 billion to ¥21.751 billion. The comparison shows different performance trends in revenue and profitability across the two periods. But the half-year performance does not erase the divergence among the various business indicators presented by the company.
At ZOZOTOWN, gross merchandise value rose 4.4% to ¥245.88 billion, while it increased 11.7% to ¥38.46 billion at LINE Yahoo Commerce. Cosmetics merchandise value across the two businesses reached ¥9.37 billion, up 18.7%. The company said ZOZOTOWN activity in the second fiscal quarter came in slightly below plan. It attributed this to weaker demand for summer clothing as summer temperatures were lower than usual.
In the second quarter alone, gross merchandise value excluding "other goods" rose 6.3% year on year, and adjusted EBITA grew 7.0%. In the first half, adjusted EBITA was ¥34.61 billion, up 5.1% from the year-earlier period. ZOZO said the earnings exceeded its plan partly because of improved delivery efficiency and warehouse operations, which limited shipping and logistics costs. The timing of some initiatives was also delayed, particularly during the first fiscal quarter, leaving some planned promotional allocations unspent. The company also cited improved terms with delivery companies and lower ratios for some logistics costs as factors supporting profitability.
By contrast, the company said changes in the business mix, a higher share of promotional spending and depreciation expenses weighed on margins. The adjusted EBITA margin as a share of gross merchandise value was steady at 11.2%, matching the year-earlier period. Presentation details showed that improvements in storage efficiency and inventory-related operations helped reduce costs, while packaging materials and cloud service fees became more expensive. In the second quarter, ZOZO launched the "ZOZO Your Fit Room" feature in its WEAR app, offering a fashion-style diagnosis and AI-generated virtual clothing try-on. The initiative was part of the company's activity during the period, alongside growth in merchandise value across its various channels.
ZOZO left its forecast for the fiscal year ending March 31, 2027 unchanged, setting revenue at ¥241.9 billion, operating profit at ¥74.4 billion and net profit at ¥49.7 billion. It also forecast annual dividends of ¥40 per share. The next date on its disclosure calendar is January 29, 2027, when the company will report third-quarter results and hold a briefing for analysts. The existing full-year forecast therefore remains the benchmark for upcoming results.