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ZOZO Inc (JP:3092)
:3092
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ZOZO (3092) AI Stock Analysis

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JP:3092

ZOZO

(3092)

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Outperform 78 (OpenAI - Gpt-5.6Sol)
Rating:78Outperform
Price Target:
¥1,243.00
▲(8.13% Upside)
Action:Reiterated
Date:10/06/26
The score is driven primarily by strong financial performance (high, consistent profitability and a conservative balance sheet) and a positive earnings call emphasizing record operating performance and enhanced shareholder returns via a sizable buyback. Valuation is supportive with a solid dividend yield and a reasonable P/E. The main offset is weaker technical positioning (negative MACD and trading below key moving averages), indicating softer near-term momentum.
Positive Factors
Strong profitability
ZOZO’s sustained high profitability indicates that its marketplace model converts substantial transaction activity into earnings. Healthy net margins provide resources for marketing, technology, logistics investment, and shareholder returns while supporting resilience through normal changes in demand and product mix.
Negative Factors
Slowing revenue growth and margin pressure
Although ZOZO continues to expand, slower recent revenue growth may limit operating leverage and make future earnings increasingly dependent on execution. The gradual gross-margin decline suggests mix, cost, or investment pressure that could constrain profit expansion if it persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
ZOZO’s sustained high profitability indicates that its marketplace model converts substantial transaction activity into earnings. Healthy net margins provide resources for marketing, technology, logistics investment, and shareholder returns while supporting resilience through normal changes in demand and product mix.
Read all positive factors

ZOZO (3092) vs. iShares MSCI Japan ETF (EWJ)

ZOZO Business Overview & Revenue Model

Company Description
ZOZO, Inc. is a Japanese company specializing in online retail, with operations extending across both domestic and international markets. The company manages a diverse array of digital platforms, including the fashion e-commerce site ZOZOTOWN, the...
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:Jul 31, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: ZOZO reported record Q1 GMV excluding other GMV and record adjusted EBITA, higher annual buyers, improved logistics efficiency, progress on HIGH LINK and LYST initiatives, and unchanged full-year forecasts. Offsetting factors included a 1.6% decline in total GMV, softer June demand due to colder weather, a slight decline in adjusted EBITA margin, higher stated fixed and promotion-related expenses, lower average retail price and AOV, reduced cash balances, and flat LYST growth. The positive operating performance and strategic progress significantly outweighed the stated challenges.
Positive Updates
Share Repurchase and Improved Capital Efficiency
ZOZO announced a market share repurchase of up to JPY 30 billion or 43 million shares from June 17, 2026 through December 30, 2026, with all acquired shares scheduled for cancellation on January 29, 2027. The initiative is intended to strengthen shareholder returns and improve capital efficiency. The company targets an average total shareholder return of 80% over five years, based on a 70% dividend payout ratio, and expects FY 2026 ROE to surpass 50%, compared with 46.6% at the end of FY 2025.
Negative Updates
Total GMV Declined Year Over Year
Total Q1 GMV decreased 1.6% year over year to JPY 156.7 billion. The company attributed the decline to GMV from the ZOZO Option contract store on Yahoo! Shopping no longer being included as of September 2025.
Read all updates
Q1-2026 Updates
Negative
Share Repurchase and Improved Capital Efficiency
ZOZO announced a market share repurchase of up to JPY 30 billion or 43 million shares from June 17, 2026 through December 30, 2026, with all acquired shares scheduled for cancellation on January 29, 2027. The initiative is intended to strengthen shareholder returns and improve capital efficiency. The company targets an average total shareholder return of 80% over five years, based on a 70% dividend payout ratio, and expects FY 2026 ROE to surpass 50%, compared with 46.6% at the end of FY 2025.
Read all positive updates
Company Guidance
ZOZO said its consolidated earnings forecast and dividend forecast had no changes, with the full year spending against GMV for actual promotion-related expenses expected to be 4.8% around the same level as last fiscal year; for LYST, it estimated that GMV will remain flat, with the initial plan unchanged, while seeking to significantly increase opt-ins for the checkout function. The company is targeting an average total shareholder return of 80% over 5 years based on a 70% dividend payout ratio, plans to repurchase shares with a maximum total purchase amount of JPY 30 billion or 43 million shares from June 17, 2026 through December 30, 2026, cancel all shares acquired on January 29, 2027, and expects FY 2026 ROE to surpass 50%, compared with 46.6% as of the end of FY '25; management also said the quarter was on track with its plans and that July was showing improvements.

ZOZO Financial Statement Overview

Summary
Strong fundamentals supported by consistently high profitability and healthy net margins, plus a conservatively levered balance sheet with improving debt-to-equity. Offsetting factors are clearly slowing revenue growth in the most recent years and some volatility in operating/free cash flow conversion versus the steadier income statement.
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue230.48B228.37B213.13B197.02B183.42B166.20B
Gross Profit206.43B205.41B198.31B183.15B171.34B156.17B
EBITDA78.20B76.32B69.58B64.34B59.10B51.74B
Net Income48.45B47.93B45.35B44.34B39.53B34.49B
Balance Sheet
Total Assets178.87B198.26B187.81B162.83B155.74B127.28B
Cash, Cash Equivalents and Short-Term Investments37.20B69.42B91.49B69.75B74.13B65.52B
Total Debt20.07B20.00B20.00B20.00B20.40B20.20B
Total Liabilities80.26B91.47B89.09B78.08B79.05B72.18B
Stockholders Equity98.61B106.79B98.72B84.74B76.57B54.95B
Cash Flow
Free Cash Flow0.0047.71B55.31B34.59B27.71B38.67B
Operating Cash Flow0.0052.53B60.11B42.59B36.67B39.90B
Investing Cash Flow0.00-28.90B-6.29B-9.88B-10.59B-1.28B
Financing Cash Flow0.00-45.83B-32.08B-37.14B-17.74B-34.82B

ZOZO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1149.50
Price Trends
50DMA
1118.94
Positive
100DMA
1100.11
Positive
200DMA
1114.86
Positive
Market Momentum
MACD
1.34
Negative
RSI
60.04
Neutral
STOCH
74.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3092, the sentiment is Positive. The current price of 1149.5 is above the 20-day moving average (MA) of 1111.30, above the 50-day MA of 1118.94, and above the 200-day MA of 1114.86, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 74.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3092.

ZOZO Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥1.02T20.9948.95%3.42%6.32%6.95%
68
Neutral
¥87.88B14.18―2.52%6.44%14.03%
63
Neutral
¥617.73B17.4129.94%―19.03%35.00%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
¥98.14B8.327.93%3.71%4.35%37.52%
60
Neutral
¥1.38B42.44――2.41%-63.72%
49
Neutral
¥1.44T-22.22-7.11%0.77%10.86%69.63%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3092
ZOZO
1,150.00
-154.36
-11.83%
JP:4755
Rakuten
659.60
-339.40
-33.97%
JP:4385
Mercari
3,737.00
1,553.00
71.11%
JP:9997
Belluna Co., Ltd.
1,015.00
71.21
7.54%
JP:3028
Alpen Co., Ltd.
2,338.00
124.20
5.61%
JP:4017
CREEMA LTD.
205.00
-70.00
-25.45%

ZOZO Corporate Events

ZOZO Advances Large-Scale Share Buyback Program
Oct 2, 2026
ZOZO, Inc. reported progress on its ongoing share repurchase program, disclosing that it bought 3,747,600 shares of common stock on the Tokyo Stock Exchange between September 1 and September 30, 2026, for a total of approximately 4.2 billion yen. ...
ZOZO Accelerates Share Buybacks Under ¥30 Billion Repurchase Plan
Sep 2, 2026
ZOZO has disclosed the latest status of its ongoing share repurchase program authorized by its board in mid-June 2026. Between August 1 and August 31, the company bought back 5,042,500 common shares on the Tokyo Stock Exchange for approximately 5....
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...
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.Date of analysis: Oct 06, 2026