ZOZO, Inc.

ZOZOTOWN consignment softness in 3Q (outerwear timing/inventory) + 4Q aiming for plan - Management acknowledged weakness in Nov–Dec in 3Q, largely due to a high prior-year benchmark and outerwear mix/inventory dynamics. - This year, outerwear inventory existed, but brands avoided markdowns, so the company could not sell down as effectively; additional time-lag effects appeared into January winter sales (with January “doing well” so far). - For Oct/Nov/Dec: November was on plan (ZOZO WEEK present but GMV was lower than expected), October and December undershot plan, with December only partly recovering. - Outlook/forecast implication: they intend to continue aiming to achieve the GMV targets; they did not give a hard quantified “5% growth” commitment in the transcript, but the tone is recovering via 4Q execution rather than abandoning the plan.

Investor “growth” question (5% target) not clearly confirmed; guidance framework remains target-based - The analyst asked whether reaching a “5% level” for growth is possible given undershooting in Jan–Mar. - Response focused on target attainment and 4Q/near-term execution, while explaining the quarterly mismatch (inventory + markdown behavior + timing) rather than citing a structural inability. - Bottom line for investors: momentum is expected to improve, but management’s language suggests performance is conditional on continuing execution and sell-through, not a guaranteed numeric growth path.

Profitability resilience: EBITDA momentum high-to-date; cost savings/controls seen as sustainable - Despite GMV growth shortfalls vs plan, the company reported highest-to-date EBITDA (noted by an analyst), implying margin/profit engineering offset volume softness. - They expect to sustain SG&A improvements, citing: - logistics-related personnel costs improving, - inventory operation optimization (return/handling of slow-moving inventory with brand permission), - continued warehousing process efficiency. - Shipping cost improvement: they said improved truck load efficiency via facility changes (Yamato collaboration) improved financial terms—supporting EBITDA quality.