Earnings update: Record profits continue

Research evidence excerpt

Earnings update: Record profits continue

Global Research

31 July 2026ab

ZOZO Inc Equities

JapanEarnings update: Record profits continue

Retailers, Apparel

12-month rating Neutral

Action: Update of earnings estimates following Q1 results

We update our earnings estimates following the Q1 results. We reaffirm that the 12m price target ¥1,130.0

company is on course to achieve its FY3/27 OP plan. In addition to revising our earnings Prior : ¥1,100

estimates and factoring in the passage of time, we incorporate the share buyback

Price (31 Jul 2026) ¥1,143

announced on 16 June and adjust the cost of equity due to rising interest rates. We

accordingly adjust our price target from ¥1,100 to ¥1,130 and maintain a Neutral rating. RIC: 3092.T BBG: 3092 JP

Trading data and key metrics

Investment overview: Ongoing efforts to enhance growth potential

52-wk range ¥1,538-989

ZOZO, which operates ZOZOTOWN, is the biggest player in Japan’s fashion e-commerce

Market cap. ¥1,011b/US$6.31b

space. It has grown on the back of its fulfilment capabilities, fashion-focused UI/UX

Shares o/s 884m (ORD)

improvements, and a virtuous cycle of an increasing number of brand listings, growth in

Free float 44%

inventory, and expansion of the customer base. The company is actively using AI to

boost potential growth and is trying to increase its earnings by developing advertising Avg. daily volume ('000) 5,956

business for represented brands, offering consumers more cosmetics, and leveraging Avg. daily value (m) ¥6,403.3

the platform’s strengths. As part of its M&A strategy, the company announced the Common s/h equity (03/27E) ¥94.1b

acquisition of LYST in April 2025 to strengthen its overseas operations and the P/BV (03/27E) 10.7x

acquisition of High Link in April 2026 to expand its categories.