Key facts
- Casio Computer's net profit more than doubled in fiscal year 2026, reaching ¥18.2 billion ($115 million).
- Revenue increased by 5.5% to ¥276.3 billion ($1.74 billion), with operating profit up 62% to ¥23.1 billion ($146 million).
- The company's affordable retro watch series, including models like the A159 and MTP-1302, is the primary driver of this growth.
- This success comes despite slumping sales of the G-Shock line in China.
- Casio's watch business generated ¥185 billion ($1.17 billion) with a healthy 14.7% operating margin.
- Casio forecasts ¥295 billion ($1.86 billion) in revenue for the current year and aims for an 11.1% operating margin by 2029.
Casio Computer's share price is experiencing a significant uplift, fueled by the unexpected resurgence of its inexpensive Casio Watch series, particularly among younger consumers. This trend has led to a more than doubling of net profit in fiscal year 2026, reaching ¥18.2 billion ($115 million), with revenue climbing 5.5% to ¥276.3 billion ($1.74 billion) and operating profit surging 62% to ¥23.1 billion ($146 million).
The success is largely attributed to the popularity of vintage, retro designs like the A159 and MTP-1302 models, which are appealing to Gen Z's interest in nostalgia and minimalist fashion. These watches, often priced between $50 and $70, offer a stark contrast to expensive smartwatches and luxury alternatives.
While the iconic G-Shock line continues to perform, its sales in China have been declining, making the retro series' performance even more critical. Demand for popular G-Shock models was so strong in Q3 that it led to stockouts in Q4, prompting emergency production increases.
The broader watch business generated ¥185 billion ($1.17 billion) in revenue with a healthy 14.7% operating margin. Casio has projected revenue of ¥295 billion ($1.86 billion) for the current year and aims for an 11.1% operating margin by 2029, signaling confidence in its strategy.