ZOZO, Inc.

ZOZOTOWN consignment / apparel weakness in Q3; inventory & timing drove the miss - Analysts noted ZOZOTOWN consignment felt “weak”; management confirmed Nov–Dec were weak vs last year’s strong benchmark (last year had Black Friday sales and more outerwear). - This year had outerwear inventory, but brands didn’t markdown enough, so inventory couldn’t be sold down as planned in that quarter. - Inventory timing: outerwear inventory was “plentiful” as they entered winter sales in January, and January is doing well so far—suggesting some recovery/lag vs Q3.

Growth target uncertainty: management still aims for GMV targets, but “5% level growth” is not assured - For the consignment business (ZOZOTOWN and LINE Yahoo!), the company said it will continue to aim to achieve targets (GMV budget framework). - On the question “is it possible to reach 5% growth level,” management’s responses emphasized continuing to execute the plan rather than clearly validating a specific upside probability. - Implication for investors: near-term momentum is being managed, but recent performance indicates seasonality/markdown/product-mix risks are real.

Cost inflation + easing tax narrative: costs are a headwind mainly via consumer sensitivity; taxes could be a tailwind - Cost of goods inflation: management said it hasn’t materially affected the business overall yet, but there are early signs in the “young” segment (not necessarily big declines in conversion/ARP, but increased sensitivity/weakening signs). - No hard numerics provided in this session; impact described as subtle (“may be starting to show a little”). - Tax easing (if realized): management expects a positive effect; otherwise costs remain the key consumer pressure channel.