2021 High Conviction: ZOZO – Good Times Are Zo Far Away

ZOZO – Getting Gamestopped on This 2021 Conviction Call

Zozo – Nice Results but It’s Just a COVID Bump

Zozo – 6% Revenue Growth Does Not Justify 15x EV/OP

Zozo – Growth Cancellation Follows Dear Moon Cancellation

Equity Analyst, LightStream Research

Supun Walpola

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<p>In our previous note, <a href="https://www.smartkarma.com/insights/zozo-nice-results-but-it-s-just-a-covid-bump" target="_blank" data-smartkarma-citation="insights:41718" rel="noopener">Zozo – Nice Results but It’s Just a COVID Bump</a>, we suggested that <a href="https://www.smartkarma.com/entities/zozo-inc" target="_blank" data-smartkarma-citation="entities:18379:1" rel="noopener">ZOZO Inc (3092 JP)</a>'s strong 1Q results could be a temporary bump due to the stay-at-home demand, and the company could quickly return to its decelerating growth post-lockdowns. ZOZO's 2Q results show early signs of this happening and we expect a correction over the next few quarters as the impact of the stay-at-home demand further subsides and potentially weak winter sales are booked.</p>

In our previous note, Zozo – Nice Results but It’s Just a COVID Bump, we suggested that ZOZO Inc (3092 JP)'s strong 1Q results could be a temporary bump due to the stay-at-home demand, and the company could quickly return to its decelerating growth post-lockdowns. ZOZO's 2Q results show early signs of this happening and we expect a correction over the next few quarters as the impact of the stay-at-home demand further subsides and potentially weak winter sales are booked.

ZOZO Inc

ZOZO: Return to Collapsing Growth