cazalea[Seiko Moderator]
16932
SEIKO: $1 billion sales / $100 million profit first 9 mo of 2019 / Annual sales forecast 1.27 billion CHF / below Patek and above AP
Mar 13, 2020,12:15 PM
Watches Business
SEIKO HOLDINGS CORPORATION
Consolidated Financial Statements: 3Q FY2019 Page 3/13
Net sales under the Watches Business came to 108.0 billion yen (€890 million, US$1 billion) for the first 9 months of 2019 The company forecast is 1.43 billion yen for 12 months
a year-on-year decrease of 1.7 billion yen, or 1.6%. Efforts were made to accelerate the expansion of sales in Japan, the U.S. and Asia by promoting the Global Brands strategy set out in the basic policies of the 7th Mid-Term Management Plan.
Net sales of watches in Japan remained at the same level as the previous fiscal year, mainly due to the impact of natural disasters and stagnant personal consumption following the consumption-tax hike. While net sales of Grand Seiko and other Global Brands, which had experienced a significant impact from a surge in demand, decreased due to the reaction immediately following the tax hike, net sales increased year on year on a nine-month cumulative basis. The Company will continue to promote initiatives to increase net sales, such as through the new opening in December of the world’s largest Grand Seiko Boutique in Osaka.
On a distribution channel basis, sales at department stores increased year on year, while a drop was seen in sales at mass retailers. Overseas, Global Brands also continued to grow in all regions, and overall net sales of watches overseas increased year on year, excluding the impact of changes in the distribution of some products and foreign currency fluctuations.
Grand Seiko showed continuous growth in the U.S. In Europe, net sales increased year on year in Germany, the Netherlands and France and the other countries on a local currency basis.
Net sales in Hong Kong declined due to the protests, while net sales in China increased mainly in e-commerce on the Singles’ Day, November 11, which drove net sales in Asia.
The watch movements business enjoyed favorable sales of mechanical movements, while demand for analogue quartz movements continued to be stagnant.
Operating profit was 10.6 billion yen, an increase of 0.3 billion yen, or 3.2%, mainly due to the effects of improved efficiency from increased production and continued cost-reduction efforts, while strengthening investment for growth.
Operating profit roughly 10% of sales
Cazalea