Key facts
- Seiko Group is reshaping itself into a luxury brand.
- Seiko's watch division is outperforming major Swiss rivals in growth and margins.
- Strong demand in the U.S. is a key driver for Seiko's watch business.
- Credor, Seiko's ultra-high-end line, will be showcased at Watches and Wonders Geneva in 2026.
- A limited run of 3,400 watches in collaboration with Shohei Ohtani sold out.
Japanese watchmaker Seiko Group is strategically repositioning itself as a global luxury brand, a move that has brought its stock market valuation metric in line with industry giant LVMH Moet Hennessy Louis Vuitton. The company's watch division is demonstrating robust growth and profitability, significantly outpacing many Swiss competitors.
Seiko's financial results for the first half of fiscal year 2025 indicate a total revenue of ¥160 billion, with the watch segment contributing ¥98.2 billion, an increase of 8.8% year-on-year. The watch unit achieved an operating profit of ¥15.4 billion, resulting in a margin of approximately 15%. This performance contrasts with the lower margins reported by Swiss groups like Richemont (around 3%) and Swatch Group (4-5%) for similar periods.
The surge in Seiko's momentum is largely attributed to strong demand in the United States, where its Grand Seiko line is increasingly recognized as a value-driven alternative in the luxury-adjacent market. While luxury goods sales have seen a general slowdown in Europe, Seiko's Prospex and Presage lines have maintained positive performance globally.
A significant strategic development is the confirmation that Credor, Seiko's ultra-high-end collection typically exclusive to the Japanese market, will participate in Watches and Wonders Geneva in 2026. This follows the successful path of Grand Seiko, which was spun off as a standalone global brand in 2010 and now competes alongside established luxury names.
Further underscoring its market appeal, a limited release of 3,400 watches created in collaboration with baseball star Shohei Ohtani quickly sold out at retailers, highlighting strong consumer interest in its premium offerings.