ZOZO, Inc. Just Missed Earnings - But Analysts Have Updated Their Models

ZOZO, Inc. (TSE:3092) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of JP¥213b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.3% to hit JP¥50.90 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ZOZO after the latest results.

Our free stock report includes 1 warning sign investors should be aware of before investing in ZOZO. Read for free now.

After the latest results, the 17 analysts covering ZOZO are now predicting revenues of JP¥228.5b in 2026. If met, this would reflect a reasonable 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to JP¥57.08. Before this earnings report, the analysts had been forecasting revenues of JP¥229.2b and earnings per share (EPS) of JP¥57.42 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for ZOZO

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,505. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic ZOZO analyst has a price target of JP¥2,100 per share, while the most pessimistic values it at JP¥1,167. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that ZOZO's revenue growth is expected to slow, with the forecast 7.2% annualised growth rate until the end of 2026 being well below the historical 10% p.a. growth over the last five years. Compare this to the 154 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.6% per year. Factoring in the forecast slowdown in growth, it looks like ZOZO is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥1,505, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on ZOZO. Long-term earnings power is much more important than next year's profits. We have forecasts for ZOZO going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for ZOZO that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.