Fashion SoftBank-backed Zozo shares untraded after Q1 earnings dive

Fashion SoftBank-backed Zozo shares untraded after Q1 earnings dive

Fashion

TOKYO, July 31 (Reuters) – SoftBank-backed online style merchant Zozo Inc’s shares were untraded with an excess of buy orders on Friday, a day after reporting after a 34%jump in first-quarter operating revenue as Japanese consumers accept online shopping.

Shares look set to close up 21%at their everyday limitation high of 2,860 yen. The outcomes are a bright area in a fashion business hammered by the coronavirus outbreak as customers stay home, gaining from brand names moving unsold stock to the website.

The earnings development is a tailwind for CEO Kotaro Sawada, who took over from flamboyant creator Yusaku Maezawa after the sale to SoftBank Group, which exerts control via its domestic web business Z Holdings.

Maezawa pushed Zozo into the headlines with splashy but not successful endeavors like the Zozosuit body determining suit however alienated essential company partners. Occupants like Onward Holdings have gone back to the website under the new management.

SoftBank is making a significant push into ecommerce with Amazon and Rakuten competitor PayPay Shopping center. The website likewise features Zozo, which wants to bring in brand-new clients beyond its fashion-loving base.

Reporting by Sam Nussey; editing by Uttaresh.V

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