Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

SoftBank-backed Zozo shares up 21% after first-quarter profit jump

Published 07/31/2020, 03:16 AM
Updated 07/31/2020, 03:20 AM
© Reuters.
AMZN
-
4689
-
9984
-
3092
-
8016
-
4755
-

By Sam Nussey

TOKYO (Reuters) - SoftBank-backed online fashion retailer Zozo Inc's (T:3092) 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 (T:9984), which exerts control via its domestic internet business Z Holdings (T:4689).

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 (T:8016) have returned to the site under the new management.

SoftBank is making a major push into ecommerce with Amazon (O:AMZN) and Rakuten (T:4755) 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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.