Consolidated Financial Results
For the fiscal year ended March 31, 2021 [JGAAP]
Company Name: | ZOZO, Inc. | Listed stock exchange: | ||
Code: | 3092 | URL | ||
Representative: | Representative Director, President & CEO | Kotaro Sawada | ||
Contact Person: | Director, Executive Vice President & CFO | KojiYanagisawa | ||
Scheduled date of the ordinary | June 25, 2021 | Scheduled date of | ||
general shareholders' meeting | dividend payment: | |||
Scheduled date to file the financial | June 14, 2021 | |||
report | ||||
Supplementary materials for | : | Yes | ||
quarterly financial results | ||||
Quarterly results briefing | : | Yes (For analysts and institutional investors) |
April 27, 2021 Tokyo https://corp.zozo.com/en
(TEL) 043(213)5171
June 28, 2021
(Rounded down to million yen)
Consolidated results for the fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021) (1)Consolidated business results
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||
147,402 | 17.4 | 44,144 | 58.3 | 44,386 | 60.6 | 30,932 | 64.5 | |||||
March 31, 2021 | ||||||||||||
Fiscal year ended | 125,517 | 6.0 | 27,888 | 8.7 | 27,644 | 7.5 | 18,804 | 17.6 | ||||
March 31, 2020 | ||||||||||||
(NOTE) | Comprehensive income | Fiscal year ended March 31, 2021 | 30,806 Million yen | (64.7%) | ||||||||
Fiscal year ended March 31, 2020 | 18,706 Million yen | (16.3%) | ||||||||||
Net profit per share | Operating profit | |||||||||||
Net profit per share | after adjusting | ROE | ROA | |||||||||
margin to net sales | ||||||||||||
dilutive shares | ||||||||||||
Fiscal year ended | Yen | Yen | % | % | % | |||||||
101.30 | - | 68.8 | 40.4 | 29.9 | ||||||||
March 31, 2021 | ||||||||||||
Fiscal year ended | 61.60 | - | 65.9 | 31.9 | 22.2 | |||||||
March 31, 2020 | ||||||||||||
(NOTE) Fully diluted net profit per share is not presented because there are no potential shares with dilutive effects.
(2)Consolidated financial position
Total assets | Net assets | Equity ratio | Net asset per share | |
Fiscal year ended | Million yen | Million yen | % | Yen |
125,656 | 55,507 | 44.1 | 181.53 | |
March 31, 2021 | ||||
Fiscal year ended | 94,186 | 34,534 | 36.7 | 113.11 |
March 31, 2020 | ||||
(Reference) | Shareholders' equity | Fiscal year ended March 31, 2021 | 55,433 Million yen | |
Fiscal year ended March 31, 2020 | 34,533 Million yen | |||
(3)Consolidated cash flows | ||||
Cash flows from | Cash flows from | Cash flows from | Ending balance of cash | |
operating activities | investing activities | financing activities | and cash equivalents | |
Fiscal year ended | Million yen | Million yen | Million yen | Million yen |
44,790 | -4,648 | -12,117 | 61,648 | |
March 31, 2021 | ||||
Fiscal year ended | 24,789 | -5,987 | -6,771 | 33,602 |
March 31, 2020 | ||||
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2.Dividends
Annual dividends | Total | Payout ratio | Dividends to | |||||
dividend | (consolidated) | net assets | ||||||
End of Q1 | End of Q2 | End of Q3 | Year-end | Total | (consolidated) | |||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | Million yen | % | % |
- | 12.00 | - | 18.00 | 30.00 | 9,158 | 48.7 | 32.1 | |
March 31, 2020 | ||||||||
Fiscal year ended | - | 15.00 | - | 26.00 | 41.00 | 12,519 | 40.5 | 27.8 |
March 31, 2021 | ||||||||
Fiscal year ending | ||||||||
March 31, 2022 | - | 22.00 | - | 33.00 | 55.00 | 50.4 | ||
(Forecast) |
3. Consolidated business forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)
(Percentages indicateYoY changes)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net profit | ||||||
owners of parent | per share | |||||||||
Fiscal year ending | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
162,600 | 10.3 | 47,800 | 8.3 | 47,800 | 7.7 | 33,300 | 7.7 | 109.05 | ||
March 31, 2022 | ||||||||||
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- Notes
(1) Changes of important subsidiaries during the period | : None | |||
(Changes in specified subsidiaries resulting in changes in the scope of consolidation) | ||||
New | - | , | Exclusion | - |
(2)Changes in accounting policies and changes or restatement of accounting estimates
① | Changes in accounting policies caused by revision of accounting | : | None |
standards | |||
② | Changes in accounting policies other than ① | : | None |
-
Changes in accounting estimates
④ Restatements
(3)Number of shares outstanding (Ordinary stock)
-
Year-endshares outstanding (including treasury stocks)
② Number of year-end treasury stocks
- Average number of shares during the period
- None
- None
Fiscal year ended | 311,644,285 | Shares | Fiscal year ended | 311,644,285 | Shares |
March 31, 2021 | March 31, 2020 | ||||
Fiscal year ended | 6,279,914 | Shares | Fiscal year ended | 6,349,103 | Shares |
March 31, 2021 | March 31, 2020 | ||||
Fiscal year ended | 305,343,395 | Shares | Fiscal year ended | 305,295,182 | Shares |
March 31, 2021 | March 31, 2020 | ||||
- This financial results report is not subject to the audit by a certified public accountant or an auditing firm.
- Explanations and other special notes concerning the appropriate use of financial forecasts
- The financial forecasts and other statements related to the future contained in this material are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual results may differ materially from these forecasts due to various factors. Please refer to "1.Qualitative information on results for the fiscal year ended March 31, 2021 (4) Future outlook" on page 13 for the assumptions underlying the forecasts and cautionary statements regarding the use of the forecasts.
- We are scheduling to hold a financial result briefing for institutional investors and analysts on April 27, 2021. We plan to post the content of the briefing and the materials used on the day on its website promptly after the briefing.
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Table of contents of appendix | |
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1.Qualitative information on results for the fiscal year ended March 31, 2021
(1) Overview of business results
Business results for the current fiscal year | |||||
[Table 1]YoY comparison | (Unit: Million yen) | ||||
Previous consolidated fiscal year | Current consolidated fiscal year | YoY basis | |||
(April 1, 2019 to March 31, 2020) | (April 1, 2020 to March 31, 2021) | ||||
Gross merchandise value | 345,085 | (100.0%) | 419,438 | (102.9%) | 21.5% |
Gross merchandise value (excluding other GMV) | 345,085 | (100.0%) | 407,774 | (100.0%) | 18.2% |
Net sales | 125,517 | (36.4%) | 147,402 | (36.1%) | 17.4% |
Gross profit | 113,721 | (33.0%) | 140,033 | (34.3%) | 23.1% |
Operating profit | 27,888 | (8.1%) | 44,144 | (10.8%) | 58.3% |
Ordinary profit | 27,644 | (8.0%) | 44,386 | (10.9%) | 60.6% |
Profit attributable to owners of parent | 18,804 | (5.4%) | 30,932 | (7.6%) | 64.5% |
Figures in parentheses are percentages to gross merchandise value (excluding other GMV)
Under the corporate philosophy of "Inspire the world. Deliver joy every day.", we mainly operate the following businesses: Japan's largest fashion eCommerce website ZOZOTOWN and a fashion media WEAR.
The current consolidated fiscal year remained extremely challenging for the apparel industry in Japan. The whole industry faced impacts from the continuous expansion of COVID-19, while a new living standard is gradually establishing. Under this circumstance, our group has been focusing even stronger on creating ZOZOTOWN more attractive to both users and brands, with the aim of increasing the number of unique users and improving the conversion rate (the purchasing rate of unique users). To maximize sales at ZOZOTOWN, we have implemented measures such as sales events ZOZOWEEK (10 days from May 15 to 24, 2020, 10 days in total from September 9 to 13 and 18 to 22, 2020, and 17 days in total from November 6 to 15 and 19 to 25) and broadcastedTV commercial at the same time of sales events in November and January 2021. In addition, we proactively welcomed new brands in a wide range of genres to meet diversifying needs of users.
In terms of product expansion, we aggressively strengthened the D2C business and product categories. In the
current consolidated fiscal year, sales of 18 new brands from "YOUR BRAND PROJECT Powered by ZOZO" started from October 22, 2020. This project is the D2C business that we create fashion brands together with individuals who have brilliant talents and senses. New popular influencers participated in March 2021 and spring/summer products are now available. Merchandise value of the D2C business is mostly recorded in purchase stock shops. As the first step of categories enhancement, we expanded merchandise value of the shoe category in ZOZOTOWN by using the "ZOZOMAT". The "ZOZOMAT" distribution started from February 27, 2020, which allows users to measure multiple parts of their feet in 3D and provides necessary data for selecting shoes. It has already been used by many users. Of the shoes sold in ZOZOTOWN at present, the number of shoes covered by the ZOZOMAT exceeds 2,500 styles, and sales in the shoe category are growing steadily. In addition, on March 18, 2021, we renewed ZOZOTOWN; launched ZOZOCOSME to strengthen the cosmetics category, and ZOZOVILLA, which offers a lineup of domestics and overseas luxury brands. ZOZOCOSME handles more than 500 cosmetics brands both from domestic and overseas at the time of the launch, with a female active member ratio of over 70%, and it aims to expand merchandise value of the cosmetics category in ZOZOTOWN. Furthermore, we have implemented a purchase assist function that recommend the color of the foundation that is closest to the measured skin color using "ZOZOGLASS", a device that can measure skin color with high precision. This enables users to have new purchasing experiences. ZOZOVILLA is a luxury and designer brands zone in ZOZOTOWN, with more than 90 luxury brands domestically and overseas. As we have grown together with fashion ever since our foundation, we have again started the zone with strong mind to provide opportunities for "fashion-lovers". We are expecting improvement of ZOZOTOWN branding through the operation of ZOZOVILLA.
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On August 20, 2020 we introduced PayPay, a cashless payment service operated by PayPay Corporation, as a new way of payment in ZOZOTOWN. PayPay is a payment method used by more than 35 million users mainly at offline, and we expected the introduction will improve convenience for existing users and drive acquisition of new users. We participated the online campaigns sponsored by PayPay Corporation to actively promote awareness of our services.
On December 17, 2019, we opened ZOZOTOWN in PayPay Mall, an online shopping mall operated byYahoo Japan Corporation. Approximately 90% of the shops in ZOZOTOWN also sell in PayPay Mall and their sales are expanding gradually. From the opening date, we have been successfully expanding our customer base. We achieved this by increasing contact points with users who are different from conventional ZOZOTOWN users, through leveraging the mall's strength in price competitiveness from dynamic reward points. In the current consolidated fiscal year,Yahoo Japan Corporation proactively deployed promotional expenses to PayPay Mall: large-scale sales and bonus returns event "Super PayPay Festival"(from October 17 to November 15, 2020 and March 1 to 28, 2021). We will continue to work closely with parent companies to maximize synergies by all means necessary.
In other businesses, we continued to sell the MSP (Multi-Size Platforms) business, which we launched in the fall of 2019, by leveraging the know-how we have cultivated in the PB business, by expanding the number of participating brands and items. Regarding the BtoB business, we have been focusing on "Fulfillment by ZOZO" which started in October 2019. The service is specialized in fulfillment support for brands in ZOZOTOWN. The main objective of this service is to minimize sales opportunity loss by centralizing inventory of ZOZOTOWN and brands' own eCommerce websites. In the current consolidated fiscal year, we saw tailwind to business environment, where brands were actively enhancing their own eCommerce websites through the digital transformation following the COVID-19 expansion.
With all the measures and the initiatives, the gross merchandise value for the current consolidated fiscal year was 419,438 million yen (+21.5%YoY), and the gross merchandise value (excluding other GMV) was 407,774 million yen (+18.2%YoY). Net sales were 147,402 million yen (+17.4%YoY), and gross profit was 140,033 million yen (+23.1%YoY).
As for the gross merchandise value, the result exceeded both the initial forecast and the revised forecast, as positive impact of the digital shift from the beginning of the fiscal year triggered by the COVID-19 epidemic. In the fourth quarter consolidated accounting period of the current fiscal year, in addition to the negative impact of the warm winter in the previous fiscal year, a significant impact from digital shift counterbalanced the negative impact from the slowdown in consumer spending deriving from the epidemic. Also, strong performance of PayPay Mall contributed significantly to the whole gross merchandise value growth.
As for net sales,YoY growth was lower than that of the gross merchandise value. The growth rate of consignment shop exceeded that of gross merchandise value, due to absence of discount measures that we took the costs, such as ZOZOARIGATO (the paid-membership service until the end of May 2019), active implementation of personalized discount services for registered members, etc. In contrast, downsizing of ZOZOUSED and PB business impacted negatively. The amount of the gross merchandise value was represented in the amount before deductions of the discount services. On the other hand, net sales are represented was the amount after the discounts.
The gross profit margin to the gross merchandise value (excluding other GMV) was 34.3%, 1.3% points improvement from the previous consolidated fiscal year. The improvement of the margin was mainly due to 1) a decrease in discount measures that we took costs in the current consolidated fiscal year compared with the previous consolidated fiscal year, 2) an improvement in the consignment sales commission rate to the gross merchandise value, and 3) an increase in advertisement business and other sales.
Selling, general and administrative expenses was 95,889 million yen (+11.7%YoY) and the SG&A ratio to the gross merchandise value (excluding other GMV) was 23.5%, down 1.4% points from the previous consolidated fiscal year. The main reasons for the decline in the SG&A ratio were as follows. All the percentages to the gross merchandise value are calculated by dividing SG&A expenses the gross merchandise value (excluding other GMV):
Improving factors
1. Reward-point related expenses to the gross merchandise value declined by 0.8% points, from the cessation of 1% worth of ZOZO points reward for items users purchased in ZOZOTOWN from April 1,2020,
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- Logistics related expenses in personnel expenses to the gross merchandise value declined by 0.3% points, from operation efficiency improvement inside logistics bases,
- Rent to the gross merchandise value declined by 0.2% points, from the expiration of some logistics bases with objectives of the gross merchandise value growth and logistics bases consolidation, and
- Other expenses to the gross merchandise value declined by 0.5% points, from a decrease in on-the-spot expenses in the previous consolidated fiscal year.
Worsening factors
1. Packaging and freight to the gross merchandise value rose by 0.4% points, from a decline in the average order value.
Consequently, operating profit for the current consolidated fiscal year was 44,144 million yen (+58.3%YoY), and operating profit margin to the gross merchandise value (excluding other GMV) was 10.8%, increased 2.7% pointsYoY. Ordinary profit was 44,386 million yen (+60.6%YoY), and profit attributable to owners of parent was 30,932 million yen (+64.5%YoY).
[Table2] Comparison with the revised consolidated business forecast disclosed on January 29, 2021 | (Unit: Million yen) | ||||
Current consolidated fiscal year | Current consolidated fiscal year | Comparison to | |||
(Revised forecast) | (Actual) | forecast | |||
Gross merchandise value | 409,000 | (101.7%) | 419,438 | (102.9%) | 2.6% |
Gross merchandise value (excluding other GMV) | 402,000 | (100.0%) | 407,774 | (100.0%) | 1.4% |
Net sales | 145,000 | (36.1%) | 147,402 | (36.1%) | 1.7% |
Operating profit | 41,500 | (10.3%) | 44,144 | (10.8%) | 6.4% |
Ordinary profit | 41,600 | (10.3%) | 44,386 | (10.9%) | 6.7% |
Profit attributable to owners of parent | 28,500 | (7.1%) | 30,932 | (7.6%) | 8.5% |
Figures in parentheses are percentages to gross merchandise value (excluding other GMV)
Compared to the revised consolidated business forecast disclosed on January 29, 2021, the gross merchandise value, the gross merchandise value (excluding other GMV), net sales, operating profit, ordinary profit, and profit attributable to owners of parent exceeded 2.6%, 1.4%, 1.7%, 6.4%, 6.7% and 8.5% respectively. The main reason for achieving the targets was generating high GMV and operating profit, because of the digital shift of users and brands triggered by the COVID-19 expansion continued in the fourth quarter consolidated accounting period of the current fiscal year.
Since our group is a single segment of the eCommerce business, information by segment is omitted; however, performance of each business segment within the single segment is shown below:
[Table 3]YoY comparison by business segment
Previous consolidated fiscal year | Current consolidated fiscal year | |||||||
(April 1, 2019 to March 31, 2020) | (April 1, 2020 to March 31, 2021) | Merchandise | Net sales | |||||
By business segment | Value | |||||||
YoY (%) | ||||||||
Merchandise | Compositi | Net sales | Merchandise | Compositi | Net sales | YoY (%) | ||
value | on | Value | on | |||||
(Million yen) | (Million yen) | |||||||
(Million yen) | (%) | (Million yen) | (%) | |||||
ZOZOTOWN Business | ||||||||
(Consignment shop) | 308,888 | 89.4 | 87,312 | 343,828 | 82.0 | 100,970 | 11.3 | 15.6 |
(Purchased stock shop) | 204 | 0.1 | 200 | 308 | 0.1 | 308 | 51.4 | 54.4 |
(ZOZOUSED) | 15,753 | 4.6 | 15,004 | 11,625 | 2.8 | 11,564 | -26.2 | -22.9 |
Subtotal | 324,846 | 94.1 | 102,517 | 355,761 | 84.9 | 112,843 | 9.5 | 10.1 |
PayPay Mall | 6,199 | 1.8 | 1,774 | 28,199 | 6.7 | 8,218 | 354.8 | 363.2 |
PB business | 1,255 | 0.4 | 1,245 | 188 | 0.0 | 188 | -85.0 | -84.8 |
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MSP business | 752 | 0.2 | 749 | 1,260 | 0.3 | 1,260 | 67.6 | 68.0 |
BtoB business | 12,032 | 3.5 | 2,365 | 22,362 | 5.3 | 4,264 | 85.9 | 80.3 |
Advertisement business | - | - | 2,716 | - | - | 4,121 | - | 51.7 |
Subtotal excluding | 345,085 | 100.0 | 111,368 | 407,774 | 97.2 | 130,896 | 18.2 | 17.5 |
Others | ||||||||
Others | - | - | 14,148 | 11,664 | 2.8 | 16,506 | - | 16.7 |
Total | 345,085 | 100.0 | 125,517 | 419,438 | 100.0 | 147,402 | 21.5 | 17.4 |
Figures in parentheses are percentages to gross merchandise value (excluding other GMV)
- ZOZOTOWN Business
ZOZOTOWN Business consists of three business forms: consignment shop, purchased stock shop, and ZOZOUSED. "Consignment shop" handles consignment inventory of merchandise from each brand and sells them on consignment basis. "Purchased stock shop" purchases fashion merchandise from each brand and sells them as in-house inventory. "ZOZOUSED" mainly buys and sells used fashion-related merchandise from individual users.
We recognize that increasing the number of buyers and the rate of ZOZOTOWN use in fashion consumption are the key factors in achieving sustainable growth. To this end, we are working to create websites that are attractive to both users and brands.
Transition of major KPIs for the ZOZOTOWN Business are as follows.
(The number of shops, etc.)
[Table 4] Changes in number of shops and brands
Previous consolidated fiscal year | Current consolidated fiscal year | ||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||
Shops in ZOZOTOWN (Note) 1 | 1,297 | 1,312 | 1,345 | 1,337 | 1,348 | 1,404 | 1,433 | 1,468 | |||
Purchased Stock Shop (Note) 2 | 5 | 5 | 5 | 5 | 5 | 5 | 6 | 18 | |||
Consignment Shop | 1,292 | 1,307 | 1,340 | 1,332 | 1,343 | 1,399 | 1,427 | 1,450 | |||
Number of brands (Note) 1,2 | 7,349 | 7,305 | 7,462 | 7,643 | 7,989 | 7,953 | 8,109 | 8,227 | |||
(NOTE) |
- Figures are as of the end of quarter accounting period.
- Private brand "ZOZO" and "Multi-size" are not included.
The number of shops opened in the current consolidated fiscal year was 225 (a net increase of 131). Within above, the number of shops opened in the fourth quarter consolidated accounting period was 79 (a net increase of 35). Major new shops opened were cosmetics brands such as POLA, Estee Lauder, JO MALONE LONDON, luxury brands such as Chloe, MAISON MARGIELA, JILSANDER, and jumille, the brand directed by twin influencers.
(Number of annual buyers)
[Table 5] Changes in number of annual buyers
Previous consolidated fiscal year | Current consolidated fiscal year | ||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||
Number of annual buyers | 8,121,663 | 8,226,388 | 8,156,256 | 8,273,603 | 8,662,560 | 8,805,155 | 9,139,796 | 9,485,669 | |||
(Note) 1,2,4 | |||||||||||
(YoY) | 729,537 | 456,842 | 82,584 | 147,079 | 540,897 | 578,767 | 983,540 | 1,212,066 | |||
(QoQ) | -4,861 | 104,725 | -70,132 | 117,347 | 388,957 | 142,595 | 334,641 | 345,873 | |||
Number of active members (Note) | 6,557,144 | 6,749,012 | 6,800,435 | 6,839,666 | 7,223,753 | 7,434,529 | 7,773,940 | 8,137,729 | |||
1,3,4 | |||||||||||
(YoY) | 1,098,501 | 966,785 | 643,598 | 388,980 | 666,609 | 685,517 | 973,505 | 1,298,063 | |||
(QoQ) | 106,458 | 191,868 | 51,423 | 39,231 | 384,087 | 210,776 | 339,411 | 363,789 | |||
Number of guest buyers | 1,564,519 | 1,477,376 | 1,355,821 | 1,433,937 | 1,438,807 | 1,370,626 | 1,365,856 | 1,347,940 | |||
(Note) 1,4 | |||||||||||
(YoY) | -368,964 | -509,943 | -561,014 | -241,901 | -125,712 | -106,750 | 10,035 | -85,997 | |||
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(QoQ) | -111,319 | -87,143 | -121,555 | 78,116 | 4,870 | -68,181 | -4,770 | -17,916 |
(NOTE)
- The calculating period is the most recent one-year period prior to the end of the accounting periods.
- Numbers of annual buyers are sum of active members and guest buyers who purchased more than once within the past year from each quarter.
- Numbers of active members are members who purchased more than once within the past year from each quarter.
- Buyers of "PayPay Mall" are not included.
In the fourth quarter consolidated accounting period of the current fiscal year, the number of annual buyers increased as a result of increases in the numbers of active members in bothYoY and QoQ. Steady growth in the number of active members was attributable to acquisition of new active members from the digital shift following the expansion of COVID-
19. Furthermore, the acquisition was boosted by strengthening of customer attraction through broadcastingTV commercial in January 2021's new-year sale, as well as all kinds of promotions includingTV commercial in March 2021 pertain to ZOZOCOSME, ZOZOVILLA opening and the ZOZOTOWN renewal. The number of guest buyers were decreasing in bothYoY and QoQ. This was mainly because of enhancement of membership services over the last several years; we expect this downward trend to continue in the future.
(Annual purchase amount and annual purchase pieces)
[Table 6] Changes in annual purchase amount and annual purchase pieces
Previous consolidated fiscal year | Current consolidated fiscal year | |||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||
Annual purchase amount (Total) | 46,934 | 47,506 | 47,593 | 46,519 | 45,128 | 44,341 | 43,809 | 42,845 | ||||
(Note) 1, 2, 3, 4 | ||||||||||||
(YoY) | 0.1% | 3.0% | 3.4% | 0.4% | -3.8% | -6.7% | -8.0% | -7.9% | ||||
(QoQ) | 1.3% | 1.2% | 0.2% | -2.3% | -3.0% | -1.7% | -1.2% | -2.2% | ||||
Annual purchase pieces (Total) | 11.3 | 11.6 | 11.7 | 11.8 | 11.8 | 11.8 | 11.7 | 11.6 | ||||
(Note) 1, 2, 3 | ||||||||||||
(YoY) | -0.4% | 3.5% | 5.1% | 6.5% | 4.9% | 1.4% | 0.1% | -1.8% | ||||
(QoQ) | 2.0% | 2.9% | 0.8% | 0.7% | 0.4% | -0.6% | -0.5% | -1.2% | ||||
Annual purchase amount (Existing | 55,048 | 54,750 | 54,092 | 53,027 | 52,175 | 51,523 | 51,066 | 50,139 | ||||
members) (Note) 1, 2, 3, 4 | ||||||||||||
(YoY) | -7.6% | -4.9% | -3.9% | -5.0% | -5.2% | -5.9% | -5.6% | -5.4% | ||||
(QoQ) | -1.3% | -0.5% | -1.2% | -2.0% | -1.6% | -1.2% | -0.9% | -1.8% | ||||
Annual purchase pieces (Existing | 13.3 | 13.4 | 13.4 | 13.4 | 13.6 | 13.6 | 13.6 | 13.5 | ||||
members) (Note) 1, 2, 3 | ||||||||||||
(YoY) | -6.2% | -2.7% | -1.6% | -0.1% | 2.4% | 1.5% | 2.1% | 1.0% | ||||
(QoQ) | -0.8% | 0.6% | -0.3% | 0.4% | 1.6% | -0.3% | 0.3% | -0.7% | ||||
(NOTE)
- The calculating period is the most recent one-year before the end of the accounting periods.
- Indexes for each active member.
- Buyers of "PayPay Mall" are not included.
- The amounts are in yen.
During the fourth quarter consolidated accounting period of the current fiscal year, the annual purchase amount (Total) decreased in bothYoY and QoQ. This was due to an increase in the composition of new members to the total, as a result of the steady acquisition of new members from the digital shift in line with the expansion of COVID-19. YoY and QoQ decreases in the annual purchase amounts of existing members were reflecting an increase in the percentage of existing active members with short membership history (annual purchase amounts tends to increase according to length of membership). Annual purchase pieces (total) decreased in bothYoY and QoQ due to the same reason of decreases in annual purchase amount as stated in above. Contrarily, annual purchase pieces of existing members increased from the decrease of the average retail price.
(Average retail price etc.)
[Table 7] Changes in average retail price, average order value and number of shipments
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Previous consolidated fiscal year | Current consolidated fiscal year | ||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||
Average retail price | 3,903 | 3,516 | 4,501 | 3,909 | 3,443 | 3,381 | 4,301 | 3,748 | |||
(Note) 1, 2, 3 | |||||||||||
(YoY) | -1.4% | -3.9% | -5.6% | -10.7% | -11.8% | -3.8% | -4.5% | -4.1% | |||
Average order value | 8,390 | 7,529 | 8,973 | 8,304 | 7,409 | 7,370 | 8,516 | 7,991 | |||
(Note) 1, 2, 3 | |||||||||||
(YoY) | 3.2% | -3.3% | -6.3% | -12.5% | -11.7% | -2.1% | -5.1% | -3.8% | |||
Average purchase pieces per | 2.15 | 2.14 | 1.99 | 2.12 | 2.15 | 2.18 | 1.98 | 2.13 | |||
order (Note) 1, 3 | |||||||||||
(YoY) | 4.6% | 0.6% | -0.8% | -1.9% | 0.1% | 1.8% | -0.7% | 0.4% | |||
Number of shipments | 9,209,344 | 10,347,938 | 10,101,875 | 9,757,344 | 11,472,548 | 11,011,990 | 11,960,223 | 11,162,186 | |||
(Note) 1, 3 | |||||||||||
(YoY) | 9.3% | 16.7% | 6.2% | 7.6% | 24.6% | 6.4% | 18.4% | 14.4% | |||
(NOTE)
- Figures for quarter accounting period are used.
- The amounts are in yen.
- "PayPay Mall" is not included.
The average retail price of the fourth quarter consolidated accounting period decreasedYoY, primarily due to strong sales of merchandises in relatively low price point. The average purchase pieces per order increasedYoY whereas the average order value decreasedYoY due to the decline in the average retail price.
Results for ZOZOTOWN business (consignment shop, purchased stock shop and ZOZOUSED) are as follows:
-
Consignment shop
In the current consolidated fiscal year, the merchandise value was 343,828 million yen (+11.3%YoY), accounting for 82.0% of the gross merchandise value (89.4% in the previous consolidated fiscal year). Net sales were 100,970 million yen (+15.6%YoY). As of the end of March 2021, the number of consignment shops was 1,450 (1,427 as of the end of December 2020). - Purchased stock shop
In the current consolidated fiscal year, the merchandise value was 308 million yen (+51.4%YoY), accounting for 0.1% of the gross merchandise value (0.1% in the previous consolidated fiscal year). Net sales were 308 million yen (+54.4%YoY). As of the end of March 2021, the number of purchased stock shops was 18 (6 as of the end of December 2020). - ZOZOUSED
In the current consolidated fiscal year, the merchandise value was 11,625 million yen (-26.2%YoY), accounting for 2.8% of the gross merchandise value (4.6% in the previous consolidated fiscal year). Net sales were 11,564 million yen (-22.9%YoY). - PayPay Mall
ZOZOTOWN opened a shop on PayPay Mall an online shopping mall operated byYahoo Japan Corporation. In the current consolidated fiscal year, the merchandise value was 28,199 million yen (+354.8%YoY), accounting for 6.7% of the gross merchandise value (1.8% in the previous consolidated fiscal year). Net sales were 8,218 million yen (+363.2%YoY). - PB business
In the PB business, we sell in-house designed apparel products tailored to individual bodies of users. In the current consolidated fiscal year, the merchandise value was 188 million yen (-85.0%YoY), accounting for 0.0% of
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the gross merchandise value (0.4% in the previous consolidated fiscal year). Net sales were 188 million yen (- 84.8%YoY).
-
MSP business
The MSP business manufactures a portion of item line-up from shops with strong user demands and sell them on ZOZOTOWN, by combining the know-how of manufacturing clothes in a variety of sizes; accumulated from the PB business, sales capability and planning ability of shops on ZOZOTOWN. We offer products in recommending sizes by users providing their height and weight data. In the current consolidated fiscal year, merchandise value was 1,260 million yen (+67.6%YoY), accounting for 0.3% of the gross merchandise value (0.2% in the previous consolidated fiscal year). Net sales were 1,260 million yen (+68.0%YoY). - BtoB business
The B2B business is a business model which we are commissioned to build and operate brands' own eCommerce sites. In the current consolidated fiscal year, merchandise value was 22,362 million yen (+85.9% YoY), accounting for 5.3% of the gross merchandise value (3.5% in the previous consolidated fiscal year). Net sales (consignment sales commission) were 4,264 million yen (+80.3%YoY). As of the end of March 2021, the number of consigned websites was 53 (55 as of the end of December 2020). - Advertisement business
The advertisement business is a business model that generates advertising revenue by providing advertising space to client brands and group companies in SoftBank Group, by utilizing the user reach base of ZOZOTOWN. In the current consolidated fiscal year, net sales were 4,121 million yen (+51,7%YoY).
As for WEAR, we continue to focus on expanding the number of users and contents. As of the end of March 2021, the number of app downloads exceeded 15 million, and the number of monthly active users is growing steadily. - Others
The other segment of the gross merchandise value includes 1) the merchandise value of shops concluded "ZOZO Option" contracts in the fashion category stores excluding ZOZOTOWN in PayPay Mall (service that enables those shops enjoy merits through sales support such as to participate special events by ZOZO) which was recorded from the third quarter consolidated accounting period of the current fiscal year, and 2) the merchandise value of a consolidated subsidiary's own eCommerce website which was recorded from the second quarter consolidated accounting period of the current fiscal year. In the current consolidated fiscal year, the merchandise value was 11,664 million yen, accounting for 2.8% of the gross merchandise value.
Within the others segment of net sales, net sales generated from businesses related to ZOZOTOWN (shipping income, settlement commission, paid-membership program etc.), and other sales related to the aforementioned other GMV are included. Net sales were 16,506 million yen (+16.7%YoY).
(2) Overview of financial position
Overview ofTotal Assets, Liabilities and Net Assets
(Unit: Million yen) | |||
Previous consolidated fiscal year | Current consolidated fiscal year | Increase/ decrease | |
rate | |||
Total assets | 94,186 | 125,656 | 33.4% |
Liabilities | 59,651 | 70,149 | 17.6% |
Net assets | 34,534 | 55,507 | 60.7% |
(Total Assets)
Total assets amounted to 125,656 million yen, an increase of 31,470 million yen (+33.4% from the previous consolidated fiscal year end). Current assets increased by 29,366 million yen, or 41.7%, compared with the previous consolidated
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fiscal year end, amounted to 99,796 million yen. Major components are an increase of 28,045 million yen in cash and deposits and an increase of 1,234 million yen in accounts receivable. Non-current assets increased by 2,103 million yen, or 8.9%, compared with the previous consolidated fiscal year end, amounted to 25,860 million yen. Major components are an increase of 4,825 million yen in buildings, a decrease of 2,908 million yen in construction in progress, an increase of 165 million yen in investment securities and an increase of 304 million yen in deferred tax assets.
(Liabilities)
Liabilities amounted to 70,149 million yen, an increase of 10,497 million yen (+17.6% from the previous consolidated fiscal year end). Current liabilities increased by 9,054 million yen, or 16.1%, amounted to 65,180 million yen compared with the previous consolidated fiscal year end. Major components are an increase of 2,536 million yen in deposits received for consignment sales, an increase of 1,661 million yen in accounts payable - other, and an increase of 6,167 million yen in income taxes payable. Non-current liabilities increased by 1,442 million yen, or 40.9%, amounted to 4,968 million yen compared with the previous consolidated fiscal year end. Major components are an increase of 679 million yen in retirement benefit liability and an increase of 739 million yen in asset retirement obligations.
(Net Assets)
Net assets amounted to 55,507 million yen, an increase of 20,973 million yen (+60.7% from the previous consolidated fiscal year end). Major components are an increase of 30,932 million yen due to the recognition of profit attributable to owners of parent and a decrease of 10,075 million yen due to cash dividends
12
(3) Overview of cash flows
Overview of cash flows
Cash and cash equivalents ("cash") at the end of the current consolidated fiscal year amounted to 61,648 million yen, an increase of 28,045 million yen from the previous consolidated fiscal year end.
Descriptions of each cash flow are as follows:
(Unit: Million yen) | |||
Previous consolidated fiscal year | Current consolidated fiscal year | Increase/ decrease rate | |
Cash flows from operating activities | 24,789 | 44,790 | 80.7% |
Cash flows from investing activities | -5,987 | -4,648 | -22.4% |
Cash flows from financing activities | -6,771 | -12,117 | 79.0% |
(Cash flows from operating activities)
The net cash provided by operating activities was 44,790 million yen. The major increasing factor is the recognition of profit before income taxes of 43,665 million yen. The major decreasing factors are an increase of 1,161 million yen in provision for bonuses, an increase of 1,223 million yen in accounts receivable and an increase of 6,986 million yen in income taxes paid.
(Cash flows from investing activities)
The net cash used in investing activities was 4,648 million yen. This was mainly due to the recognition of purchase of property, plant and equipment of 3,224 million yen and payments for leasehold and guarantee deposits of 648 million yen.
(Cash flows from financing activities)
The net cash used in financing activities was 12,117 million yen. This was mainly due to cash dividends paid of 10,073 million yen.
(4) Future outlook
(Prospect for the next fiscal year) | ||||||
[Table 8] Consolidated business forecast | (Unit: Million yen) | |||||
Current consolidated fiscal year | Next consolidated fiscal year | YoY | ||||
(April 1, 2020 to March 31, 2021) | (April 1, 2021 to March 31, 2022) | |||||
Gross merchandise value | 419,438 | (102.9%) | 472,800 | (105.0%) | 12.7% | |
Gross merchandise value (excluding other GMV) | 407,774 | (100.0%) | 450,400 | (100.0%) | 10.5% | |
Net sales | 147,402 | (36.1%) | 162,600 | (36.1%) | 10.3% | |
Operating profit | 44,144 | (10.8%) | 47,800 | (10.6%) | 8.3% | |
Ordinary profit | 44,386 | (10.9%) | 47,800 | (10.6%) | 7.7% | |
Profit attributable to owners of parent | 30,932 | (7.6%) | 33,300 | (7.4%) | 7.7% | |
Figures in parentheses are percentages to gross merchandise value (excluding other GMV)
The domestic fashion eCommerce market, which is the axis and focus of our group, is still at low level compared to the fashion eCommerce ratio of the West and China. However, with the digital shift in both users and brands due to the COVID-19 epidemic as the tailwind, it is expected that overall trend of expansion will continue in the future. Under such circumstance, in addition to continuous focus on making of a more attractive site for both users and brands, we are aiming to increase the gross merchandise value with sum of 2 malls; ZOZOTOWN and ZOZOTOWN PayPay Mall Shop. We aim at growing our gross merchandise value (excluding other GMV) by 10% or more in comparison to the current consolidated fiscal year.
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Due to the adoption of the accounting standard related to revenue recognition from the next consolidated fiscal year, point-related expenses recorded in selling, general and administrative expenses will be represented by deducting the expenses from net sales in the next consolidated fiscal year.
In addition, we will change our business segment from the next consolidated fiscal year onward as follows.
The reason behind the change in the business segment is to 1) concentrate the gross merchandise value in ZOZOTOWN and 2) clarify segments based on inventory risk and the nature of products. As a result of the change, merchandise plan by business segment in the next consolidated fiscal year will be presented in the new segmentation. Also, the current consolidated fiscal year results have been reclassified retrospectively as well.
The breakdown of the next consolidated fiscal year by new business segment is as follows:
[Table 9] Merchandise value forecast by business units
Current consolidated fiscal year | Next consolidated fiscal year | YoY | |||
(April 1, 2020 to March 31, 2021) | (April 1, 2021 from March 31, 2022) | ||||
By business segment | |||||
Merchandise value | Ratio | Merchandise value | Ratio | (%) | |
(million yen) | (%) | (million yen) | (%) | ||
ZOZOTOWN Business | 357,211 | 85.2 | 393,400 | 83.2 | 10.1 |
(Outright Purchase/Production & Sales) | 1,758 | 0.4 | 3,600 | 0.8 | 104.7 |
(Consignment Sales) | 343,828 | 82.0 | 378,000 | 79.9 | 9.9 |
(USED Sales) | 11,625 | 2.8 | 11,800 | 2.5 | 1.5 |
PayPay Mall | 28,199 | 6.7 | 33,000 | 7.0 | 17.0 |
BtoB Business | 22,362 | 5.3 | 24,000 | 5.1 | 7.3 |
Subtotal excluding Others | 407,774 | 97.2 | 450,400 | 95.3 | 10.5 |
Others | 11,664 | 2.8 | 22,400 | 4.7 | 92.0 |
Total | 419,438 | 100.0 | 472,800 | 100.0 | 12.7 |
Regarding Consignment Sales and PayPay Mall within ZOZOTOWN Business, we will aim to grow the gross merchandise value by "increasing the number of purchasing users" and "increasing ZOZOTOWN utilization rate in fashion-related consumption". Specifically, we will acquire new active users, expand the range of items, brands and categories to meet diversifying needs of users, and expansion of services that are unique and value-added. As for ZOZOTOWN PayPay Mall
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shop, on top of the same initiatives as consignment shop, we will focus on acquiring new customer segments that differ from conventional ZOZOTOWN users. Focus area for categories expansion will continue to be shoes, cosmetics, and luxury brands. Regarding Outright Purchase/Production & Sales segment in ZOZOTOWN Business, we will focus on attracting new shops with outright purchase basis for certain shops, and building a made-to-order foundation and improving gross profit margin for MSP/D2C. As for USED Sales within ZOZOTOWN Business, we will continue to improve usability as a value-added service for ZOZOTOWN users to purchase new products. In B2B business, we will continue to support the operation of the existing commissioned websites and to expand new contracts of "Fulfillment by ZOZO" depending on demand from brands.
Other focus area will include 1) expansion of Advertisement business through refining existing advertisement menu and adding new advertising product, 2) seeking mid to long term profit growth drivers that do not rely on the gross merchandise value growth, and 3) pursuing sustainability initiatives which are unique to ZOZO.
As for selling, general and administrative expenses, we expect increases in promotional expenses and packaging and freight for ZOZOTOWN when compared to the gross merchandise value (excluding other GMV). As a result, operating profit margin growth for the next consolidated fiscal year is expected to be lower than the growth of the gross merchandise value, but we will maintain steady profit growth.
2. Basic principle of accounting standards selection
Our policy is to prepare consolidated financial statements on Japanese basis by taking comparability of periods and in between companies into consideration. With regard to the application of IFRS, our policy is to respond appropriately after contemplating various domestic and international situations.
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3. Consolidated financial statements
(1) Consolidated balance sheets
(Unit: million yen) | ||||
Previous consolidated fiscal year | Current consolidated fiscal year | |||
(As of March 31, 2020) | (As of March 31, 2021) | |||
Assets | ||||
Current assets | ||||
Cash and deposits | 33,602 | 61,648 | ||
Accounts receivable | 31,547 | 32,781 | ||
Merchandise and finished products | 1,664 | 1,792 | ||
Raw materials and supplies | 106 | 79 | ||
Others | 3,508 | 3,494 | ||
Total current assets | 70,429 | 99,796 | ||
Non-current assets | ||||
Property, plant and equipment | ||||
Buildings | 5,323 | 9,915 | ||
Accumulated depreciation | -1,739 | -1,506 | ||
Buildings, net | 3,583 | 8,408 | ||
Vehicles | 31 | 28 | ||
Accumulated depreciation | -12 | -16 | ||
Vehicles, net | 19 | 12 | ||
Tools, furniture and fixtures | 8,538 | 9,052 | ||
Accumulated depreciation | -4,704 | -5,602 | ||
Tools, furniture and fixtures, net | 3,833 | 3,449 | ||
Construction in progress | 3,056 | 148 | ||
Total property, plant and equipment | 10,493 | 12,019 | ||
Intangible assets | ||||
Goodwill | 2,148 | 2,190 | ||
Software | 386 | 345 | ||
Others | 434 | 378 | ||
Total intangible assets | 2,968 | 2,915 | ||
Investments and other assets | ||||
Investment securities | 519 | 685 | ||
Deferred tax assets | 6,969 | 7,273 | ||
Others | 3,009 | 3,201 | ||
Allowance for doubtful accounts | -204 | -235 | ||
Total investments and other assets | 10,295 | 10,925 | ||
Total non-current assets | 23,756 | 25,860 | ||
Total assets | 94,186 | 125,656 | ||
16
(Unit: million yen) | |||
Previous consolidated fiscal year | Current consolidated fiscal year | ||
(As of March 31, 2020) | (As of March 31, 2021) | ||
Liabilities | |||
Current liabilities | |||
Accounts payable- trade | 60 | 147 | |
Deposits received for consignment sales | 18,998 | 21,535 | |
Accounts payable- other | 5,296 | 6,958 | |
Short-term borrowings | 22,000 | 20,000 | |
Income taxes payable | 3,812 | 9,980 | |
Provision for bonuses | 459 | 1,622 | |
Provision for bonuses for directors | - | 81 | |
Provision for point certificates | 1,387 | 361 | |
Provision for sales returns | 107 | 139 | |
Others | 4,003 | 4,354 | |
Total current liabilities | 56,126 | 65,180 | |
Non-current liabilities | |||
Deferred tax Liabilities | 10 | 12 | |
Retirement benefit liability | 2,007 | 2,686 | |
Asset retirement obligations | 1,497 | 2,237 | |
Others | 9 | 31 | |
Total non-current liabilities | 3,525 | 4,968 | |
Total liabilities | 59,651 | 70,149 | |
Net assets | |||
Shareholders' equity | |||
Capital Stock | 1,359 | 1,359 | |
Capital surplus | 1,328 | 1,328 | |
Retained earnings | 56,340 | 77,109 | |
Treasury shares | -24,412 | -24,146 | |
Total shareholders' equity | 34,616 | 55,651 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 0 | 4 | |
Foreign currency translation adjustment | -11 | -9 | |
Remeasurements of defined benefit plans | -71 | -213 | |
Total accumulated other comprehensive income | -83 | -217 | |
Share acquisition rights | 1 | 3 | |
Non-controlling interests | - | 70 | |
Total net assets | 34,534 | 55,507 | |
Total liabilities and net assets | 94,186 | 125,656 | |
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(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income
(Unit: million yen) | |||
Previous consolidated fiscal year | Current consolidated fiscal year | ||
(April 1, 2019 to March 31, 2020) | (April 1, 2020 to March 31, 2021) | ||
Net sales | 125,517 | 147,402 | |
Cost of sales | 11,780 | 7,338 | |
Gross profit | 113,737 | 140,064 | |
Reversal of provision for sales returns | 92 | 107 | |
Provision for sales returns | 107 | 139 | |
Gross profit- net | 113,721 | 140,033 | |
Selling, general and administrative expenses | |||
Point promotion expenses | 4,531 | 2,167 | |
Outsourcing expenses | 8,947 | 7,461 | |
Packing and transportation expenses | 21,993 | 27,578 | |
Payment collection commission | 9,526 | 10,840 | |
Advertising expenses | 4,812 | 5,934 | |
Payroll and allowances | 11,800 | 15,239 | |
Provision for bonuses | 459 | 1,161 | |
Provision for bonuses for directors | - | 81 | |
Retirement benefit expenses | 358 | 515 | |
Share-based compensation expenses | -109 | 47 | |
Depreciation | 2,045 | 2,051 | |
Amortization of goodwill | 444 | 375 | |
Others | 21,021 | 22,434 | |
Total selling, general and administrative expenses | 85,832 | 95,889 | |
Operating profit | 27,888 | 44,144 | |
Non-operating income | |||
Interest income | 2 | 6 | |
Received rent | - | 263 | |
Foreign exchange gain | - | 23 | |
Operations support fee | 45 | 9 | |
Income from recycling | 40 | 36 | |
Subsidy income | 44 | 215 | |
Gain on unused points | 43 | 52 | |
Others | 33 | 25 | |
Total non-operating income | 208 | 632 | |
Non-operating expenses | |||
Interest expenses | 92 | 71 | |
Provision for allowance for doubtful accounts | 204 | 33 | |
Rent expense | - | 251 | |
Commission expenses | 59 | 10 | |
Foreign exchange losses | 68 | - | |
Loss on investments in partnerships | 28 | 22 | |
Total non-operating expenses | 453 | 390 | |
Ordinary profit | 27,644 | 44,386 | |
18
(Unit: million yen) | |
Previous consolidated fiscal year | Current consolidated fiscal year |
(April 1, 2018 to March 31, 2020) | (April 1, 2019 to March 31, 2021) |
Extraordinary income
Reversal of Provision for loss on business liquidation
Reversal of Provision for foreign currency translation adjustment
Gain on sales of non-current assets
Gain on sales of Investment securities
Total extraordinary income
Extraordinary losses
130 | - |
- | 22 |
15 | 0 |
50 | 10 |
196 | 33 |
Loss on sales and retirement of non-current assets | 29 | 554 | |
Loss on valuation of investment securities | 1,697 | - | |
Office transfer expenses | - | 198 | |
Total extraordinary losses | 1,726 | 753 | |
Profit before income taxes | 26,113 | 43,665 | |
Income taxes - current | 7,828 | 12,963 | |
Income taxes - deferred | -519 | -239 | |
Total income taxes | 7,308 | 12,724 | |
Net Profit | 18,804 | 30,941 | |
Profit attributable to non-controlling interests | - | 9 | |
Profit attributable to owners of parent | 18,804 | 30,932 | |
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Consolidated statements of comprehensive income
(Unit: million yen) | ||
Previous consolidated fiscal year | Current consolidated fiscal year | |
(April 1, 2019 to March 31, 2020) | (April 1, 2020 to March 31, 2021) | |
Net Profit | 18,804 | 30,941 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | -76 | 4 |
Foreign currency translation adjustment | -27 | 2 |
Remeasurements of defined benefit plans, net of tax | 6 | -141 |
Total other comprehensive income | -98 | -134 |
Comprehensive income | 18,706 | 30,806 |
(Breakdown) | ||
Comprehensive income attributable to owners of parent | 18,706 | 30,797 |
Comprehensive income attributable to non-controlling interests | - | 9 |
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(3) Consolidated statements of change in net assets
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)
(Unit: million yen) | ||||||||
Shareholders' equity | ||||||||
Retained | Total | |||||||
Capital Stock | Capital surplus | Treasury stock | shareholders' | |||||
earnings | ||||||||
equity | ||||||||
Balance as of March 31, | 1,359 | 1,328 | 44,252 | -24,412 | 22,528 | |||
2019 | ||||||||
Changes of items during | ||||||||
the current fiscal year | ||||||||
Cash dividends | -6,716 | -6,716 | ||||||
Profit attributable to | 18,804 | 18,804 | ||||||
owners of parent | ||||||||
Transfer from retained | ||||||||
earnings to capital | - | |||||||
surplus | ||||||||
Changes in retained | ||||||||
earnings from newly | -0 | -0 | ||||||
consolidated subsidiary | ||||||||
Disposal of treasury | - | |||||||
stock | ||||||||
Net changes of items | ||||||||
other than | ||||||||
Shareholders' equity, | ||||||||
net | ||||||||
Total changes of items | ||||||||
during the current fiscal | - | - | 12,087 | - | 12,087 | |||
year | ||||||||
Balance as of March 31, | 1,359 | 1,328 | 56,340 | -24,412 | 34,616 | |||
2020 | ||||||||
Accumulated other comprehensive income | ||||||||
Valuation | Total | Share acquisition | Non-controlling | |||||
Foreign currency | Remeasurement | accumulated | Total net assets | |||||
difference on | ||||||||
rights | interests | |||||||
translation | s of defined | other | ||||||
available-for-sale | ||||||||
adjustment | benefit plans | comprehensive | ||||||
securities | ||||||||
income | ||||||||
Balance as of March 31, | 77 | 18 | -77 | 17 | 110 | - | 22,656 | |
2019 | ||||||||
Changes of items during | ||||||||
the current fiscal year | ||||||||
Cash dividends | -6,716 | |||||||
Profit attributable to | 18,804 | |||||||
owners of parent | ||||||||
Transfer from retained | ||||||||
earnings to capital | - | |||||||
surplus | ||||||||
Changes in retained | ||||||||
earnings from newly | -0 | |||||||
consolidated subsidiary | ||||||||
Disposal ofTreasury | - | |||||||
stock | ||||||||
Net changes of items | - | |||||||
other than | -76 | -30 | 6 | -101 | -109 | -210 | ||
Shareholders' equity, | ||||||||
net | ||||||||
Total changes of items | - | |||||||
during the current fiscal | -76 | -30 | 6 | -101 | -109 | 11,877 | ||
year | ||||||||
Balance as of March 31, | 0 | -11 | -71 | -83 | 1 | - | 34,534 | |
2020 | ||||||||
21
Current consolidated fiscal year (From April 1, 2020 to March 31, 2021)
(Unit: million yen) | ||||||||
Shareholders' equity | ||||||||
Retained | Total | |||||||
Capital Stock | Capital surplus | Treasury stock | shareholders' | |||||
earnings | ||||||||
equity | ||||||||
Balance as of March 31, | 1,359 | 1,328 | 56,340 | -24,412 | 34,616 | |||
2020 | ||||||||
Changes of items during | ||||||||
the current fiscal year | ||||||||
Cash dividends | -10,075 | -10,075 | ||||||
Profit attributable to | 30,932 | 30,932 | ||||||
owners of parent | ||||||||
Transfer from retained | ||||||||
earnings to capital | 87 | -87 | - | |||||
surplus | ||||||||
Changes in retained | ||||||||
earnings from newly | - | |||||||
consolidated subsidiary | ||||||||
Disposal ofTreasury | -87 | 266 | 178 | |||||
stock | ||||||||
Net changes of | ||||||||
items other than | ||||||||
Shareholders' equity, | ||||||||
net | ||||||||
Total changes of items | ||||||||
during the current fiscal | - | - | 20,768 | 266- | 21,034 | |||
year | ||||||||
Balance as of March 31, | 1,359 | 1,328 | 77,109 | -24,146 | 55,651 | |||
2021 | ||||||||
Accumulated other comprehensive income | ||||||||
Valuation | Total | Share acquisition | Non-controlling | |||||
Foreign currency | Remeasurement | accumulated | Total net assets | |||||
difference on | ||||||||
rights | interests | |||||||
translation | s of defined | other | ||||||
available-for-sale | ||||||||
adjustment | benefit plans | comprehensive | ||||||
securities | ||||||||
income | ||||||||
Balance as of March 31, | 0 | -11 | -71 | -83 | 1 | - | 34,534 | |
2020 | ||||||||
Changes of items during | ||||||||
the current fiscal year | ||||||||
Cash dividends | -10,075 | |||||||
Profit attributable to | 30,932 | |||||||
owners of parent | ||||||||
Transfer from retained | ||||||||
earnings to capital | - | |||||||
surplus | ||||||||
Changes in retained | ||||||||
earnings from newly | - | |||||||
consolidated subsidiary | ||||||||
Disposal ofTreasury | 178 | |||||||
stock | ||||||||
Net changes of items | ||||||||
other than | 4 | 2 | -141 | -134 | 2 | 70 | -61 | |
Shareholders' equity, | ||||||||
net | ||||||||
Total changes of items | ||||||||
during the current fiscal | 4 | 2 | -141 | -134 | 2 | 70 | 20,973 | |
year | ||||||||
Balance as of March 31, | 4 | -9 | -213 | -217 | 3 | 70 | 55,507 | |
2021 | ||||||||
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(4) Consolidated statements of cash flows
(Unit: million yen) | |||
Previous consolidated fiscal year | Current consolidated fiscal year | ||
(April 1, 2019 to March 31, 2020) | (April 1, 2020 to March 31, 2021) | ||
Cash flows from operating activities | |||
Profit before income taxes | 26,113 | 43,665 | |
Depreciation | 2,045 | 2,051 | |
Amortization of goodwill | 444 | 375 | |
Share-based compensation expenses | -109 | 47 | |
Reversal of Provision for foreign currency translation | - | -22 | |
adjustment | |||
Loss on valuation of investment securities | 1,697 | - | |
Office transfer expenses | - | 198 | |
Provision for allowance for doubtful accounts | 204 | 33 | |
Loss (gain) on investments in partnership | 28 | 22 | |
Loss (gain) on sales of Investment securities (- is gain) | -50 | -10 | |
Loss (gain) on asset retirement obligation | 13 | 554 | |
Increase (decrease) in provision for bonuses | 63 | 1,161 | |
Increase (decrease) in provision for bonuses for directors | - | 81 | |
Increase (decrease) in provision for point certificates | 44 | -1,025 | |
Increase (decrease) in provision for sales returns | 15 | 31 | |
Increase (decrease) in retirement benefit liability | 285 | 477 | |
Interest and dividend income | -2 | -6 | |
Interest expenses | 92 | 71 | |
Commission expenses | 59 | 10 | |
Foreign exchange losses (gains) | 26 | -35 | |
Decrease (increase) in accounts receivable- trade | -4,143 | -1,223 | |
Decrease (increase) in inventories | 4,083 | -38 | |
Decrease (increase) in prepaid expenses | -260 | -62 | |
Increase (decrease) in notes and accounts payable - trade | -1,628 | 75 | |
Increase (decrease) in deposits received for consignment sales | 2,688 | 2,536 | |
Increase (decrease) in accounts payable- other | 812 | 1,425 | |
Increase (decrease) in accrued expenses | 316 | 248 | |
Increase (decrease) in accrued consumption taxes | 1,830 | 737 | |
Others | -2,061 | 455 | |
Subtotal | 32,611 | 51,838 | |
Interest and dividend income received | 1 | 5 | |
Interest expenses paid | -95 | -66 | |
Income taxes paid | -7,727 | -6,986 | |
Net cash provided by (used in) operating activities | 24,789 | 44,790 | |
23
(Unit: million yen) | |||
Previous consolidated fiscal year | Current consolidated fiscal year | ||
(April 1, 2019 to March 31, 2020) | (April 1, 2020 to March 31, 2021) | ||
Cash flows from investing activities | |||
Purchase of property, plant and equipment | -4,976 | -3,224 | |
Purchase of intangible assets | -194 | -128 | |
Proceeds from sales of property, plant and equipment | 18 | 1 | |
Payments for leasehold and guarantee deposits | -798 | -648 | |
Proceeds from collection of lease and guarantee deposits | 124 | 618 | |
Purchase of investment securities | -83 | -159 | |
Proceeds from sales of Investment securities | 7 | 10 | |
Payments for investments in capital of subsidiaries and | -76 | -22 | |
associates | |||
Payment for establishment of subsidiary | - | -639 | |
Payments of loans receivable | -4 | -2 | |
Collection of loans receivable | 1 | 4 | |
Others | -5 | -458 | |
Net cash provided by (used in) investing activities | -5,987 | -4,648 | |
Cash flows from financing activities | |||
Increase in short-term loans payable | 600 | 17,500 | |
Decrease in short-term loans payable | -600 | -19,530 | |
Repayments of long-term loans payable | - | -2 | |
Commission expenses paid | -59 | -10 | |
Purchase of treasury stocks | - | -0 | |
Cash dividends paid | -6,711 | -10,073 | |
Net cash provided by (used in) financing activities | -6,771 | -12,117 | |
Effect of exchange rate change on cash and cash equivalents | -10 | 20 | |
Net increase (decrease) in cash and cash equivalents | 12,019 | 28,045 | |
Cash and cash equivalents at beginning of period | 21,560 | 33,602 | |
Increase in cash and cash equivalents from newly consolidated | 22 | - | |
subsidiary | |||
Cash and cash equivalents at end of period | 33,602 | 61,648 | |
24
(5) Notes on consolidated financial statements
(Notes on going concern assumptions) None
(Segment information and other) [Segment information]
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)
The company group operates in a single segment of e-commerce business, descriptions are omitted.
Current consolidated fiscal year (From April 1, 2020 to March 31, 2021)
The company group operates in a single segment of e-commerce business, descriptions are omitted.
25
(Per share information)
Item | Previous consolidated fiscal year | Current consolidated fiscal year | |
(April 1, 2019 to March 31, 2020) | (April 1, 2020 to March 31, 2021) | ||
Net assets per share | 113.11 yen | 181.53 yen | |
Net income per share | 61.60 yen | 101.30 yen | |
(NOTE) 1. Net profit per share after adjusting dilutive shares are not filled in since there are no dilutive shares in the fiscal year ended March 2020.
2.The basis for computation of net assets per share is as follows.
Previous consolidated fiscal year | Current consolidated fiscal year | ||
Item | (April 1, 2019 | (April 1, 2020 | |
To March 31, 2020) | To March 31, 2021) | ||
Profit attributable to owners of parent (million yen) | 18,804 | 30,932 | |
Amount not allocated to common stock (million yen) | - | - | |
Profit attributable to owners of parent (million yen) | 18,804 | 30,932 | |
related to Ordinary stock | |||
Average number of shares of common stock | 305,295,182 | 305,343,395 | |
outstanding during the fiscal year (shares) | |||
Stock acquisition rights by resolution of the | Stock acquisition rights by resolution of the | ||
Board of Directors on June 26, 2018 | Board of Directors on June 26, 2018 | ||
1st stock acquisition | 5,847 units | On July 20, 2020, the rights were | |
right | extinguished due to the waiver of rights by | ||
(Ordinary stock 584,700) | the persons eligible for allocation. | ||
2nd stock acquisition | 3,510 units | ||
right | |||
(Ordinary stock 351,000) | |||
3rd stock acquisition | 2,340 units | ||
right | |||
(Ordinary stock 234,000) | |||
The number of the first, second and third | |||
stock acquisition rights decreased due to | |||
the retirement of the persons eligible for | |||
allocation. | |||
Stock acquisition rights by resolution of the | |||
Summary of potential shares not included in the | Board of Directors on June 25, 2019 | ||
calculation of fully diluted net income per share due to | 4th stock acquisition | ||
lack of dilutive potential with significant changes from | 995 units | ||
rights | |||
previous fiscal year end | |||
(Ordinary stock 99,500) | |||
5th stock acquisition | 597 units | ||
rights | |||
(Ordinary stock 59,700) | |||
6th stock acquisition | 398 units | ||
rights | |||
(Ordinary stock 39,800) | |||
Stock acquisition rights by resolution of the | |||
Board of Directors on October 18, 2019 | |||
7th stock acquisition | 2,500 units | ||
rights | |||
(Ordinary stock 250,000) | |||
8th stock acquisition | 1,500 units | ||
rights | |||
(Ordinary stock 150,000) | |||
26
9th stock acquisition | 1,000 units | ||
rights | |||
(Ordinary stock 100,000) |
27
(Significant subsequent events)
ZOZO made a resolution at the Board of Directors held on April 19, 2021, to conclude a fixed-term building lease agreement between Iwaki Special Purpose Company.
-
Reason for entering into the agreement
We believe that investment in logistic base is essential for the continued growth of ZOZO's business and to maintain its service level. Therefore, we decided to enter into this agreement after deliberating gross merchandise volume growth in medium to long term. - Name of the lessor
Iwaki Special Purpose Company - Date of conclusion of the agreement May 13, 2021 (Scheduled)
- Description of the agreement
1. | Name of the facility | Prologis ParkTsukuba 3 | ||
2. Address | 34 Miyukigaoka,Tsukuba City, Ibaraki | |||
3. | Description | Structure | Steel-Framed /5-Storied | |
Site area | 68,500m2 | |||
Total floor area | 156,500m2 | |||
5. Effect on business performance
As the commencement date of the lease will be February 1, 2023 (Scheduled), it will have no impact on ZOZO's consolidated business results for the fiscal period ending March 31, 2022.
DISCLAIMER:
This document is summary translation of Japanese version. All readers are recommended to refer the original Japanese version for complete information. In the event of any discrepancy, errors and/or omissions, the Japanese version shall prevail.
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Start Today Co. Ltd. published this content on 27 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2021 06:02:01 UTC.