Mercari reports profit beat but Japan EC growth slows

Published 05/08/2025, 10:24
Mercari reports profit beat but Japan EC growth slows

Investing.com - Mercari (TYO:4385) reported mixed results for the June quarter, with consolidated core operating profit increasing 39% year-over-year, exceeding both market expectations and company guidance despite slowing growth in its core Japan e-commerce business.

The company’s Japan EC gross merchandise value (GMV) grew just 2% in the quarter, confirming market concerns about decelerating growth in its primary market. Despite the slowdown, Mercari maintained high margins in Japan with an operating profit margin of 39%, though this represented a 400 basis point decline as the company continued growth investments.

Mercari’s profit growth was driven by reduced losses in its financial segment and its US business moving into profitability. The US operation maintained a positive adjusted operating profit margin, with no announcements regarding potential business divestitures in that market.

For the fiscal year ending June 2026, Mercari issued guidance for operating profit of ¥28-32 billion, representing approximately 9% growth at the median point. This outlook aligns with market expectations and factors in continued modest Japan EC GMV growth of 3-5%.

The company’s profit plan balances increased earnings from Japan EC operations against reduced losses in the financial segment, presenting what analysts consider a realistic outlook given the confirmed slowdown in its core business growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.