TOKYO (Reuters) – SoftBank-backed online style retailer Zozo Inc’s (3092 T) shares closed up 21%on Friday in their biggest single-session gain, a day after reporting a 34%dive in first-quarter operating profit as Japanese consumers accept online shopping.
The results are a bright spot in a fashion business hammered by the coronavirus outbreak as consumers stay at home, benefiting from brands shifting unsold inventory to the site.
The revenue growth is a tailwind for CEO Kotaro Sawada, who took over from flamboyant creator Yusaku Maezawa after the sale to SoftBank Group (9984 T), which applies control via its domestic internet business Z Holdings (4689 T).
Maezawa pressed Zozo into the headings with splashy however not successful endeavors like the Zozosuit body measuring suit however alienated essential service partners. Tenants like Onward Holdings (8016 T) have returned to the site under the brand-new management.
SoftBank is making a major push into ecommerce with Amazon ( AMZN.O) and Rakuten (4755 T) contender PayPay Shopping center. The site likewise includes Zozo, which wishes to bring in new consumers beyond its fashion-loving base.
Zozo sees complete year gross merchandise value, a procedure of transaction volumes, increasing 12%year-on-year to 387 billion yen, with operating profit seen rising 42%to 40 billion yen.
Reporting by Sam Nussey; modifying by Uttaresh.V & Shri Navaratnam