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ZOZO
(3092)
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Rating:73Outperform
Price Target:
¥1,252.00
▲(11.34% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by strong financial performance (high, consistent profitability and a conservative, improving balance sheet). This is tempered by softer technical conditions (trading below key moving averages with subdued momentum) and only moderate valuation support (reasonable P/E aided by a solid dividend yield).
Positive Factors
High Profitability
ZOZO's sustained net margins (~21–23%) provide durable earnings power that funds reinvestment, dividends and strategic initiatives. High profitability supports investment in technology and fulfillment, creating a long-term competitive moat and resilience through retail cycles.
Negative Factors
Slowing Growth Rate
A clear slowdown into FY2025–FY2026 reduces topline momentum and narrows the runway for operating leverage. If structural growth drivers do not reaccelerate, the company will need to rely more on fee increases, cost discipline, or new business lines to sustain returns, limiting optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
ZOZO's sustained net margins (~21–23%) provide durable earnings power that funds reinvestment, dividends and strategic initiatives. High profitability supports investment in technology and fulfillment, creating a long-term competitive moat and resilience through retail cycles.
Read all positive factors
ZOZO (3092) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.02T
Dividend Yield3.41%
Average Volume (3M)2.73M
Price to Earnings (P/E)20.9
Beta (1Y)0.22
Revenue Growth6.32%
EPS Growth6.95%
CountryJP
Employees1,894
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)54.12
Shares Outstanding892,032,350
10 Day Avg. Volume3,362,440
30 Day Avg. Volume2,732,720
Financial Highlights & Ratios
PEG Ratio3.24
Price to Book (P/B)9.16
Price to Sales (P/S)4.29
P/FCF Ratio20.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,192.73Price Target Upside6.07% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)58
Revenue Forecast (FY)¥242.09B
ZOZO Business Overview & Revenue Model
Company Description
ZOZO, Inc. (TSE: 3092) is a Japan-based e-commerce company focused on online fashion retail. It operates ZOZOTOWN, an online shopping platform that aggregates apparel and lifestyle brands and sells products to consumers, and it also provides relat...
How the Company Makes Money
ZOZO primarily generates revenue through its online fashion marketplace operations and related services. The main revenue stream is the operation of ZOZOTOWN, where ZOZO earns fees and commissions tied to merchandise sold on the platform (includin...
ZOZO Earnings Call Summary
Earnings Call Date:Jan 31, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong GMV and profit growth but facing challenges from weather impacts and increased costs. Successful promotions and growth in active members are positive, but the decline in operating margins and logistics challenges present concerns.Positive Updates
Gross Merchandise Value (GMV) Growth
GMV rose by 5.1% year-on-year to JPY 427.1 billion, with GMV excluding other GMV increasing by 7.4% year-on-year to JPY 399.4 billion.
Negative Updates
Operating Profit Margin Decline
Operating profit margin decreased by 0.6 points year-on-year to 11.4%.
Read all updates
Q3-2024 Updates
Positive
Negative
Gross Merchandise Value (GMV) Growth
GMV rose by 5.1% year-on-year to JPY 427.1 billion, with GMV excluding other GMV increasing by 7.4% year-on-year to JPY 399.4 billion.
Read all positive updates
Company Guidance
During the third quarter earnings call for ZOZO, detailed financial guidance highlighted several key metrics. The company's gross merchandise value (GMV) increased by 5.1% year-on-year to JPY 427.1 billion, while GMV excluding other GMV rose by 7.4% to JPY 399.4 billion. Operating profit saw a modest rise of 2.4%, reaching JPY 45.6 billion, with an operating profit margin (OPM) of 11.4%, which represented a decrease of 0.6 points from the previous year. The achievement rates against company plans were 74.6% for GMV, excluding other GMV, and 76.2% for operating profits. Despite challenges from abnormal weather, including a warm winter, and rising costs such as logistics space expenses, the company managed effective promotions to maintain GMV growth. The company acknowledged a 0.6-point increase in the SG&A to GMV ratio, driven by factors such as inventory supply challenges and increased expenses related to logistics and cloud services. The average retail price decreased by 1.7% year-on-year, while the average order value increased by 1.8%, illustrating a complex interplay of market dynamics and strategic adjustments.ZOZO Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 228.37B | 213.13B | 197.02B | 183.42B | 166.20B |
| Gross Profit | 205.41B | 198.31B | 183.15B | 171.34B | 156.17B |
| EBITDA | 76.32B | 69.58B | 64.34B | 59.10B | 51.74B |
| Net Income | 47.93B | 45.35B | 44.34B | 39.53B | 34.49B |
Balance Sheet | |||||
| Total Assets | 198.26B | 187.81B | 162.83B | 155.74B | 127.28B |
| Cash, Cash Equivalents and Short-Term Investments | 69.42B | 91.49B | 69.75B | 74.13B | 65.52B |
| Total Debt | 20.00B | 20.00B | 20.00B | 20.40B | 20.20B |
| Total Liabilities | 91.47B | 89.09B | 78.08B | 79.05B | 72.18B |
| Stockholders Equity | 106.79B | 98.72B | 84.74B | 76.57B | 54.95B |
Cash Flow | |||||
| Free Cash Flow | 47.71B | 55.31B | 34.59B | 27.71B | 38.67B |
| Operating Cash Flow | 52.53B | 60.11B | 42.59B | 36.67B | 39.90B |
| Investing Cash Flow | -28.90B | -6.29B | -9.88B | -10.59B | -1.28B |
| Financing Cash Flow | -45.83B | -32.08B | -37.14B | -17.74B | -34.82B |
ZOZO Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥1.02T | 20.87 | 49.71% | 3.47% | 6.32% | 6.95% | |
66 Neutral | ¥708.80B | 20.90 | 31.08% | ― | 13.25% | 104.75% | |
63 Neutral | ¥83.30B | 18.01 | ― | 2.11% | 4.97% | -22.34% | |
62 Neutral | ¥103.84B | 8.80 | 7.95% | 3.44% | 4.35% | 37.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | ¥1.46B | 44.93 | ― | ― | 2.41% | -63.72% | |
46 Neutral | ¥1.82T | -14.68 | -14.02% | ― | 10.70% | 36.82% |
* Consumer Cyclical Sector Average
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ZOZO Corporate Events
ZOZO Advances Share Buyback Program, Acquires Over 8 Million Shares
Aug 4, 2026
ZOZO, Inc. reported the status of its ongoing share repurchase program, revealing that it bought 5,593,400 shares of common stock for approximately 6.43 billion yen between July 1 and July 31, 2026 via market purchases on the Tokyo Stock Exchange....
ZOZO Posts Steady Q1 Growth and Lifts Full-Year Dividend Outlook
Jul 31, 2026
ZOZO reported first-quarter net sales of ¥56.1 billion, up 3.9% year-on-year, with operating profit rising 5.7% to ¥17.9 billion and profit attributable to owners of parent increasing 4.6% to ¥11.9 billion. Earnings per share improv...
ZOZO Launches Multi-Billion Yen Share Buyback on Tokyo Stock Exchange
Jul 2, 2026
ZOZO, Inc. has begun executing a share repurchase program authorized by its board on June 16, 2026, acquiring 2,528,300 shares of common stock on the Tokyo Stock Exchange between June 17 and June 30 for a total of approximately 2.84 billion yen. T...
ZOZO Details Governance and Independence Under LY-Controlled Group
Jun 29, 2026
ZOZO has outlined its relationship with parent company LY Corporation and other controlling shareholders, clarifying that LY, via Z Intermediate Holdings Corporation, holds 51.9% of ZOZO’s voting rights. The notice lists SoftBank Group-relat...
ZOZO Launches ¥30 Billion Share Buyback and Plans Full Cancellation of Repurchased Stock
Jun 16, 2026
ZOZO, Inc. has authorized a share repurchase of up to 43 million common shares, representing 4.86% of its outstanding stock, for a maximum total of ¥30 billion through market purchases on the Tokyo Stock Exchange between June 17 and December ...
ZOZO to Grant Treasury Shares Under Restricted Stock Plan with Minimal Dilution
May 19, 2026
ZOZO has approved the disposal of 73,800 treasury shares under its restricted stock compensation plan, allocating them to 114 employees, two directors of subsidiaries, and six subsidiary employees. The shares, priced at ¥1,026 each for a tota...
ZOZO to Boost Restricted Stock Incentives for Directors
May 19, 2026
ZOZO plans to revise its restricted stock compensation plan for directors, aiming to strengthen medium- to long-term incentives and better align management with shareholders. The proposal, subject to shareholder approval at the June 2026 meeting, ...
ZOZO to Maintain Existing Board Lineup with Director Reappointments
May 19, 2026
ZOZO, Inc. announced that its board has approved a slate of director candidates to be submitted at the 28th Ordinary General Meeting of Shareholders scheduled for June 29, 2026. The proposed lineup consists entirely of reappointments, signaling co...
ZOZO Raises Annual Dividend Outlook as It Maintains 70% Payout Policy
May 19, 2026
ZOZO, Inc. has approved a year-end dividend of 20 yen per share for the fiscal year ended March 31, 2026, resulting in an annual dividend of 39 yen per share. The total payout for the latest year-end dividend amounts to 17,686 million yen, funded ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.