SoftBank-backed Zozo shares untraded after Q1 profit jump
31/07/2020 03:23
By Sam Nussey
TOKYO, July 31 (Reuters) - SoftBank-backed online fashion
retailer Zozo Inc's 3092.T shares were untraded with a glut of
buy orders on Friday, a day after reporting after a 34% jump in
first-quarter operating profit as Japanese consumers embrace
online shopping.
Shares look set to close up 21% at their daily limit high of
2,860 yen. The results are a bright spot in a fashion industry
hammered by the coronavirus outbreak as consumers stay home,
benefiting from brands shifting unsold inventory to the site.
The profit growth is a tailwind for CEO Kotaro Sawada, who
took over from flamboyant founder Yusaku Maezawa after the sale
to SoftBank Group 9984.T , which exerts control via its
domestic internet business Z Holdings 4689.T . urn:newsml:reuters.com:*:nL3N26243X
Maezawa pushed Zozo into the headlines with splashy but
unsuccessful ventures like the Zozosuit body measuring suit but
alienated key business partners. Tenants like Onward Holdings
8016.T have returned to the site under the new management.
SoftBank is making a major push into ecommerce with Amazon
AMZN.O and Rakuten 4755.T contender PayPay Mall. The site
also features Zozo, which hopes to bring in new customers beyond
its fashion-loving base.
(Reporting by Sam Nussey; editing by Uttaresh.V)
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