Zozo Expects 1st Net Profit Decline since 2007 Listing
Tokyo, Jan. 31 (Jiji Press)--Zozo Inc. <3092>, the operator of online fashion marketplace Zozotown, said Thursday that its group net profit for the year ending in March is expected to decline 11.7 pct from the previous year to 17.8 billion yen.
It will be the company's first consolidated net profit fall since its listing in 2007. The new projection is about 40 pct below the previous forecast of 28 billion yen.
The company distributed a large number of Zozosuit for three-dimensional body measurements free of charge. But the move failed to generate any significant sales promotion effects.
Consolidated sales are estimated at 118 billion yen, down 20 pct from the previous projection. Operating profit is forecast at 26.5 billion yen, down 30 pct.
The company distributed Zozosuit in hopes of boosting its private-brand business. But the segment remains sluggish.
[Copyright The Jiji Press, Ltd.]