SoftBank-backed Zozo shares up 21% after Q1 profit jump (updated)
31/07/2020 07:33
(Updates share price, adds earnings forecast)
By Sam Nussey
TOKYO, July 31 (Reuters) - SoftBank-backed online fashion
retailer Zozo Inc's 3092.T shares closed up 21% on Friday in
their largest single-session gain, a day after reporting a 34%
jump in first-quarter operating profit as Japanese consumers
embrace online shopping.
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.
Zozo sees full year gross merchandise value, a measure of
transaction volumes, rising 12% year-on-year to 387 billion yen,
with operating profit seen rising 42% to 40 billion yen.
(Reporting by Sam Nussey; editing by Uttaresh.V & Shri
Navaratnam)
((sam.nussey@tr.com; https://twitter.com/SamNusseyRTRS;
+81345632760;))