Seiko Group, Citizen and Casio have announced strong earnings, driving their share prices higher. Casio in particular posted substantial profit growth through its two-pronged strategy centered on G-SHOCK and Casio watches, and raised its full-year forecast. Demand for analog watches is also being reassessed in the smartwatch era.
Casio Computer posted revenue of ¥74.5 billion and operating profit of ¥12.8 billion for the first quarter of the fiscal year ending March 2027, representing substantial increases in both revenue and profit. Its watch business expanded on a local-currency basis by 17% in Japan, 22% in North America, 24% in Europe and 6% in China. Its strategy of concentrating resources on the G-SHOCK and Casio watch brands has paid off, while the MRG 30th-anniversary model has also performed strongly, supporting efforts to strengthen the brand.
The full-year forecast was raised to revenue of ¥300 billion and operating profit of ¥34 billion. Casio expects US tariff refunds to lift full-year results by ¥3 billion, of which ¥2.1 billion was already recognized in the first quarter. The share price has remained near its highs since the day after the earnings announcement.
The AI pet robot known as Moflin is expanding overseas. In addition to existing sales in the United States and United Kingdom, sales have begun in China, and a new color is scheduled to be launched in September. Investors will be watching for references to the product in future earnings announcements as a growth area outside the watch business.
Citizen Watch posted revenue of ¥98.1 billion and operating profit of ¥9.91 billion for the first quarter, delivering substantial profit growth, and raised its full-year forecast from ¥34.5 billion to ¥40.5 billion. Bulova and movement sales performed strongly, and the annual dividend is expected to be raised to ¥53 per share.
Seiko Group achieved substantial profit growth in the first quarter, posting revenue of ¥99 billion and operating profit of ¥15.4 billion. It will continue investing in premium models centered on Grand Seiko, while raising its full-year forecast and planning to increase its dividend. The share price has remained near its highs.
Although growth in the smartwatch market is said to be slowing, there are indications that demand for analog watches is returning. Smartwatches cannot be said to be mainstream even among younger consumers, and the value of watches designed for long-term use is being reassessed.