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ZOZO
(3092)
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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)
Market Cap
¥1.02T
Dividend Yield3.48%
Average Volume (3M)2.46M
Price to Earnings (P/E)21.0
Beta (1Y)0.27
Revenue Growth6.32%
EPS Growth6.95%
CountryJP
Employees1,894
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)54.78
Shares Outstanding892,032,350
10 Day Avg. Volume2,836,400
30 Day Avg. Volume2,462,350
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
¥1,203.75Price Target Upside4.72% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)58.18
Revenue Forecast (FY)¥241.09B
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
Positive
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
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 230.48B | 228.37B | 213.13B | 197.02B | 183.42B | 166.20B |
| Gross Profit | 206.43B | 205.41B | 198.31B | 183.15B | 171.34B | 156.17B |
| EBITDA | 78.20B | 76.32B | 69.58B | 64.34B | 59.10B | 51.74B |
| Net Income | 48.45B | 47.93B | 45.35B | 44.34B | 39.53B | 34.49B |
Balance Sheet | ||||||
| Total Assets | 178.87B | 198.26B | 187.81B | 162.83B | 155.74B | 127.28B |
| Cash, Cash Equivalents and Short-Term Investments | 37.20B | 69.42B | 91.49B | 69.75B | 74.13B | 65.52B |
| Total Debt | 20.07B | 20.00B | 20.00B | 20.00B | 20.40B | 20.20B |
| Total Liabilities | 80.26B | 91.47B | 89.09B | 78.08B | 79.05B | 72.18B |
| Stockholders Equity | 98.61B | 106.79B | 98.72B | 84.74B | 76.57B | 54.95B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 47.71B | 55.31B | 34.59B | 27.71B | 38.67B |
| Operating Cash Flow | 0.00 | 52.53B | 60.11B | 42.59B | 36.67B | 39.90B |
| Investing Cash Flow | 0.00 | -28.90B | -6.29B | -9.88B | -10.59B | -1.28B |
| Financing Cash Flow | 0.00 | -45.83B | -32.08B | -37.14B | -17.74B | -34.82B |
ZOZO Technical Analysis
Positive
1149.50
Price Trends
1118.94
Positive
1100.11
Positive
1114.86
Positive
Market Momentum
1.34
Negative
60.04
Neutral
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥1.02T | 20.99 | 48.95% | 3.42% | 6.32% | 6.95% | |
68 Neutral | ¥87.88B | 14.18 | ― | 2.52% | 6.44% | 14.03% | |
63 Neutral | ¥617.73B | 17.41 | 29.94% | ― | 19.03% | 35.00% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥98.14B | 8.32 | 7.93% | 3.71% | 4.35% | 37.52% | |
60 Neutral | ¥1.38B | 42.44 | ― | ― | 2.41% | -63.72% | |
49 Neutral | ¥1.44T | -22.22 | -7.11% | 0.77% | 10.86% | 69.63% |
* Consumer Cyclical Sector Average
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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.