Citizen Watch reported operating profit of ¥9.9 billion for the first quarter of the fiscal year ending March 2026, up approximately 111% year on year, driven by strong performance in its watch and machine tools businesses. The company also announced that it would raise its full-year dividend to ¥53.
Citizen Watch reported revenue of ¥98.1 billion for the first quarter of the fiscal year ending March 2026, up 30.3% year on year, and operating profit of ¥9.9 billion, up 110.9%, with all segments achieving higher revenue and profit. Net income was ¥8.9 billion, reflecting the reversal of an extraordinary gain recorded in the same period of the previous fiscal year, while ordinary profit was ¥11.7 billion.
By segment, the watch business generated revenue of ¥54.8 billion, operating profit of ¥7.1 billion and an operating margin of 13.0%, supported by strong sales of movements and finished watches. The machine tools business reported revenue of ¥25.6 billion, operating profit of ¥3.2 billion and an operating margin of 12.5%, while the devices business reported revenue of ¥17.6 billion, operating profit of ¥1.3 billion and an operating margin of 7.7%.
In North America, the share of direct-to-consumer e-commerce increased, contributing to revenue growth alongside department stores and travel retail. In Asia, led by China, demand for capital investment related to AI and semiconductors increased, contributing to higher revenue across overseas markets. Sales of high-value-added models also contributed in Japan.
The full-year forecast was revised upward, with revenue raised to ¥395 billion, operating profit to ¥40.5 billion, ordinary profit to ¥43.5 billion and net income attributable to owners of the parent to ¥32 billion. The company plans to increase its annual dividend to ¥53. Its foreign-exchange assumptions were revised to ¥156 to the dollar and ¥181 to the euro, while actual exchange rates during the period were ¥160 to the dollar and ¥185 to the euro, leaving both yen-appreciation risk and potential for upside.
In terms of branding, the company is running a campaign in North America to mark the 50th anniversary of Eco-Drive, and said the global rollout of CITIZEN L, its jewelry-like watch brand, was also progressing smoothly.