SoftBank-backed Zozo shares up 21% after first-quarter profit jump
By Sam Nussey
TOKYO (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>.
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 (NASDAQ: AMZN) 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)