Citizen Watch Co. (7762) Q1 2025 earnings summary

Executive summary

• Net sales rose 4.4% year-over-year to ¥75.8–75.9 billion, driven by strong watch sales and gains in electronic products.

• Operating profit declined 15.4% year-over-year to ¥4.6–4.7 billion, with margin falling to 6.2%.

• Profit attributable to owners of parent increased 36.0% year-over-year to ¥8.5 billion, aided by a ¥4.8 billion gain on sale of investment securities.

• The watches segment saw robust sales growth, especially in premium and global brands, but operating profit dropped due to increased marketing spend.

Financial highlights

• Net sales: ¥75.8–75.9 billion (+4.4% YoY); Operating profit: ¥4.6–4.7 billion (−15.4% YoY); Ordinary profit: ¥7.3 billion (−8.2% YoY).

• Gross profit increased to ¥32.2 billion from ¥30.6 billion YoY; gross margin improved.

• Basic EPS rose to ¥35.04 from ¥25.16 YoY.

• Total assets reached ¥432.3 billion, up ¥16.8 billion from the previous fiscal year-end.

• Net assets increased to ¥266.7 billion, with an equity-to-asset ratio of 59.7%.

Outlook and guidance

• FY2024 full-year net sales forecast at ¥310.0 billion (−0.9% YoY); operating profit forecast at ¥23.0 billion (−8.2% to −8.3% YoY).

• Net income forecast at ¥22.0 billion (−4.2% YoY).

• Dividend forecast raised to ¥45 per share, up ¥5 from previous year.

• No changes to previously announced earnings or dividend forecasts.

• Watches segment expected to grow 3.2% in sales; Machine Tools projected to decline 10.6%.