Citizen Watch Co. (7762) Q3 2025 earnings summary

Executive summary

• Net sales increased 1.2% year-over-year to ¥241.7 billion for the nine months ended December 31, 2024, while operating profit declined 18.7% to ¥19.0 billion.

• Profit attributable to owners of parent rose 7.3% year-over-year to ¥22.2 billion.

• Ordinary profit fell 20.0% to ¥22.0 billion; comprehensive income dropped 27.8% to ¥23.6 billion.

• In the third quarter (Oct–Dec), both sales and profit decreased, with net sales down 0.9% and operating profit down 32.1% year-over-year.

• The business environment was mixed: strong North American and European demand, but weak Japanese and Asian markets, especially China.

Financial highlights

• Gross profit increased to ¥104.3 billion from ¥103.1 billion year-over-year.

• Basic earnings per share rose to ¥91.07 from ¥84.19 year-over-year.

• 3Q (Apr–Dec) operating margin fell from 9.8% to 7.9% year-over-year.

• Total assets increased to ¥431.1 billion, and net assets to ¥269.3 billion as of December 31, 2024.

• Exchange rates for 3Q averaged ¥152/USD and ¥165/EUR, reflecting a weaker yen.

Outlook and guidance

• Full-year net sales forecast remains unchanged at ¥313.5 billion; operating profit forecast revised down to ¥21.5 billion.

• Net income forecast for the year ending March 31, 2025, is ¥22.5 billion, with EPS projected at ¥92.28.

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

• Segment forecasts for Watches, Machine Tools, Devices and Components, and Electronic and Other Products remain unchanged.

• Assumptions include FX rates of 145 yen/USD and 155 yen/EUR for Q4.