ZOZO ( (SATLF) ) has released its Q1 earnings. Here is a breakdown of the information ZOZO presented to its investors.
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ZOZO, Inc. is a leading Japanese e-commerce company, primarily operating the largest fashion e-commerce website in Japan, ZOZOTOWN, and an outfit-sharing app, WEAR by ZOZO. The company is known for its innovative approach to fashion retail, including the development of proprietary AI technology to enhance user experience.
In the first quarter of the fiscal year ending March 31, 2026, ZOZO reported a 7.2% increase in net sales, reaching 54,028 million yen. The company also saw a 6.4% rise in operating profit and an 8.9% increase in EBITDA, reflecting a strong performance despite economic uncertainties.
Key financial highlights include a 12.2% year-over-year increase in gross merchandise value, driven by successful promotional events and the acquisition of LYST LTD, a global fashion shopping platform. The integration of LYST contributed to a change in business composition, impacting gross profit margins but expanding ZOZO’s global reach.
Looking ahead, ZOZO remains focused on enhancing its platform’s attractiveness to users and brands, aiming for continued growth in unique users and conversion rates. The company’s strategic initiatives, including the expansion of ZOZOCOSME and global market penetration through LYST, are expected to support its growth trajectory.