Citizen Watch Co. (7762) Q2 2025 earnings summary

Executive summary

• Net sales for the first half (Apr–Sep 2024) rose 2.3% year-over-year to ¥156.5 billion, driven by strong watch sales, especially in premium and global brands.

• Operating profit declined 9.0% year-over-year to ¥12.3 billion, impacted by higher advertising expenses and weaker performance in machine tools and devices.

• Ordinary profit dropped 29.6% year-over-year to ¥12.2 billion, and profit attributable to owners of parent decreased 8.3% to ¥12.2 billion.

• Second quarter (Jul–Sep 2024) saw a 0.5% increase in net sales to ¥80.6 billion, with operating profit down 4.5% to ¥7.6 billion.

• Comprehensive income fell sharply to ¥3.1 billion from ¥29.6 billion a year earlier, mainly due to negative foreign currency translation and valuation differences.

Financial highlights

• Gross profit increased to ¥67.7 billion from ¥64.6 billion year-over-year.

• Operating margin for the first half decreased from 8.9% to 7.9% year-over-year.

• Ordinary profit and profit attributable to owners of parent both declined by nearly 48% year-over-year in the second quarter.

• Basic earnings per share was ¥50.36, down from ¥54.26 in the prior year period.

• Cash and cash equivalents at period end were ¥83.3 billion, up from ¥76.9 billion a year earlier.

Outlook and guidance

• Full-year net sales forecast raised to ¥313.5 billion (+1.1% year-over-year); operating profit guidance unchanged at ¥23.0 billion.

• Ordinary profit forecast lowered to ¥24.5 billion; profit attributable to owners of parent maintained at ¥22.0 billion.

• Earnings per share for the year projected at ¥90.23.

• Dividend forecast raised to ¥45.00 per share for the year.

• Exchange rate assumptions revised to ¥149/USD and ¥161/EUR for the second half.