ZOZO, Inc.

The call did not state consolidated revenue, EPS, or gross margin figures in the discussion provided. Management said Q3 GMV missed plan, November and December were weak, November was on plan while October and December undershot, and EBITDA achieved the highest level to date. For the next period, they said January has started well, ZOZOCOSME is going well, MUSINSA should have a fuller effect in Q4 and beyond, LYST GMV is expected to continue struggling but profit should remain flat, and advertising revenue is expected to grow only steadily rather than at a prominent pace because placements are limited.

Koji Yanagisawa framed the quarter as a mix of temporary demand softness and operational progress. He pointed to a weaker-than-expected consumer backdrop, especially in younger apparel buyers, but said the business has not yet seen a major impact on average selling price, conversion, or purchase frequency. He also emphasized that the company is expanding categories through MUSINSA and building a marketplace model that can support growth without sending inventory to ZOZO’s warehouse.

Yanagisawa highlighted operational improvements as a key financial support, saying logistics-related personnel costs and inventory operations improved in Q3 and can likely continue. He said ZOZO’s logistics base improved Yamato truck load efficiency, which helped improve financial terms, and noted that slow-moving inventory is being returned with brand permission to optimize stock. On cost pressure, he said rising goods costs have not affected ZOZO much yet, though younger customers may be showing some sensitivity, and he added that a lower tax burden would be positive if it occurs.

Analysts focused on whether weaker demand in the young segment and slower outerwear sell-through signaled a structural issue. Management replied that the impact is still modest and more about early signs of sensitivity than clear declines in average price, frequency, or conversion, and said the outerwear issue was partly about fewer markdown SKUs rather than a broad product-mix failure. Questions also centered on whether EBITDA strength was sustainable; management said the logistics and inventory improvements are continuing, suggesting the margin benefit is not just a one-off.