SEIKO GROUP CORPORATION
8050・Prime Market・Precision Instruments
Emotional Value Solutions Business (EVS Business)
Seiko Group's core segment. Develops high-value-added brands domestically and internationally, centered on the Watch and Wako businesses.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (External Customers) | ¥218,009 million | ¥196,193 million | ↑ |
| Segment Profit | ¥28,590 million | ¥22,213 million | ↑ |
| Segment Profit Margin | 12.9% | 11.1% | ↑ |
| Segment Assets | ¥169,301 million | ¥156,075 million | ↑ |
| Impairment Loss | ¥0 million | ¥116 million | ↓ |
Business Details
Domestically, Seiko Watch Corporation handles watch wholesaling, Wako Co., Ltd. handles retail of luxury jewelry, apparel, and general merchandise, Morioka Seiko Instruments Inc. handles watch manufacturing, and Seiko Time Lab Inc. provides repair and after-sales services, among others. Overseas, Grand Seiko Corporation of America, SEIKO Watch Europe S.A.S., and others handle watch wholesaling. Main products are watches, watch movements, clocks, and luxury jewelry, apparel, and general merchandise. As the core segment accounting for approximately 65% of the Group's consolidated net sales, cultivating global brands including Grand Seiko (Watch) and enhancing value-added are positioned as the most critical priorities in the growth strategy.
Recent Overview
All brands achieved higher sales and profit. Domestic inbound demand and the U.S. market drove substantial improvement in both net sales and profit margin.
In FY2026 (ending March 2026), the EVS Business achieved net sales of ¥218,009 million (approximately +10.7% year on year) and segment profit of ¥28,590 million (approximately +28.7% year on year), a significant increase in both sales and profit. Grand Seiko recovered domestically from October onward and performed well in the U.S., Seiko Global Brand grew substantially, mainly in the U.S. market, and the Wako Business also increased significantly, led by watches, against a backdrop of inbound demand. The impairment loss recorded in the prior fiscal year (¥116 million) became zero this fiscal year, also improving the quality of earnings. Note that from the first quarter, the segment composition was partially revised (the clock sales business was transferred to Seiko Watch Corporation, and Seiko Time Creation Inc. was reclassified to the SS Business).
Key Products
Growth Drivers
- Continued expansion of sales of luxury watches, centered on Grand Seiko, both domestically and overseas (particularly in the U.S. market)
- Substantial growth of global brands such as Seiko Prospex, Presage, and Seiko 5 Sports in overseas markets
- Growth of the domestic Watch and Wako businesses supported by solid domestic personal consumption and inbound demand (mainly from tourists from Europe, the U.S., and Southeast Asia)
- Enhanced brand awareness and value through active investment in advertising and promotional expenses (up more than 10% year on year)
- Steady progress in the Watch Movement External Sales Business
- Plans for FY2027 (ending March 2027) call for EVS Business net sales of ¥229,000 million and operating profit of ¥31,000 million, expected to continue driving overall Group growth
Risks
- Risk of weak demand from China due to a slowdown in Chinese domestic demand and deterioration in the real estate market (the number of Chinese tourists also decreased in the current fiscal year)
- Impact of the Trump administration's tariff policies on the global economy and exports (particularly to the U.S.)
- Foreign exchange risk from large fluctuations in the yen (assumed rates for FY2027 (ending March 2027) are USD150.0 yen, EUR170.0 yen)
- Continued cost pressure from increased advertising and promotional expenses (up more than 10% year on year)
- Impact on the supply chain from changes in international circumstances
- Risk of fluctuation in inbound demand (subject to tourist trends, exchange rates, and geopolitical factors)
Last updated: June 24, 2026