Seiko and Citizen Break the EUR 1 Billion Barrier as Japanese Watchmakers Surge Ahead
Japanese Giants Outpace Swiss Export Decline
The watch industry's financial landscape shifted noticeably in 2025 as both Seiko Group Corporation and Citizen Watch Co. reported annual revenues exceeding EUR 1 billion for their respective watch divisions. The milestone places the two Japanese conglomerates alongside a select group of Swiss brands that typically dominate the upper echelons of global watch sales figures.
According to financial reports released in May 2026, the Seiko Group watch division posted sales of JPY 203 billion for the fiscal year ending March 31, 2026, translating to approximately EUR 1.1 billion at prevailing exchange rates. The figure represents a 27% increase over the previous year, a stark contrast to the 1.7% decline recorded in Swiss watch exports during 2025.
Seiko Group: Grand Seiko and Global Brands Both Grow
The Seiko Group's performance was driven by strength across both its luxury and mid-market segments. Grand Seiko continued its steady climb in the premium category, while Seiko Global Brands—particularly Prospex and Presage—posted significant gains in volume markets.
Domestic demand in Japan benefited from a favorable exchange rate that encouraged tourism-related purchases. The U.S. market also contributed meaningfully to growth, with Seiko citing particular momentum for both Grand Seiko and the broader Seiko brand portfolio.
| Brand Division | Key Markets | FY2025/26 Performance |
|---|---|---|
| Grand Seiko | Japan, USA, Europe | Steady growth in luxury segment |
| Seiko Prospex | Global | Strong volume gains |
| Seiko Presage | Global | Double-digit growth reported |
| Seiko 5 Sports | Asia, Americas | Continued market expansion |
European performance remained mixed, with Grand Seiko holding flat year-over-year against a backdrop of luxury goods market softness, while Seiko's broader portfolio managed growth in key territories.
Citizen Watch Co. Posts 10% Division Growth
Citizen Watch Co. reported consolidated sales of JPY 346 billion, with its watch division accounting for JPY 197 billion—roughly EUR 1.07 billion. Operating profit for the division surged 38%, reflecting improved margins alongside revenue growth of 10%.
The company noted that recovering domestic demand offset a decline in inbound tourist sales in Japan. Bulova, Citizen's North American-focused brand, maintained strength in its core market, while mechanical watches drove steady performance in European markets, particularly Italy and France.
Context: Where They Stand Among Global Players
According to estimates published by Vontobel and Morgan Stanley/LuxeConsult, only a handful of Swiss brands report sales exceeding EUR 1 billion: Rolex, Cartier, Omega, Patek Philippe, Audemars Piguet, Richard Mille, Longines, and Vacheron Constantin. The Japanese giants achieve comparable revenue through volume rather than unit price, operating in the mid-market and accessible luxury segments.
- Swiss watch exports declined 1.7% in 2025 (FH data)
- Seiko Group watch division grew 27% year-over-year
- Citizen watch division grew 10% with 38% operating profit increase
- Both companies benefited from Japan's weak yen and tourism demand
Long-Term Strategic Goals
Seiko Group has stated its mid- to long-term objective of positioning Grand Seiko among the top 10 global luxury watch brands, while Seiko Global Brands aims to achieve a leading share in the global mid-priced segment. Citizen has focused on integrating its manufacturing capabilities across machine tools, devices, and watches to create operational synergies.
The divergent trajectories of Japanese and Swiss watchmakers highlight how different market segments can produce growth even during periods of broader industry contraction. As Swiss brands navigate export headwinds, the Japanese manufacturers continue to find room for expansion through accessible pricing and diversified global distribution.
Frequently Asked Questions
How do Seiko and Citizen's revenues compare to Swiss luxury brands?
Both companies report watch division revenues around EUR 1 billion, comparable to lower-tier Swiss luxury brands. However, they achieve this through higher production volumes at lower average price points rather than the premium pricing strategy of brands like Rolex or Patek Philippe.
What drove the growth in Japan's domestic market?
A weak Japanese yen made purchases attractive to international tourists, boosting domestic sales. Additionally, recovering consumer confidence in Japan contributed to stronger local demand for both brands.
Are Grand Seiko and Citizen's luxury lines growing as fast?
Grand Seiko showed steady performance but faced headwinds in Europe due to luxury market softness. Citizen's premium lines, including Promaster and Series 8, gained traction in specific markets, though the company's growth was more evenly distributed across segments.
Source: According to Monochrome Watches, Seiko Group Corporation FY2025/26 financial report, and Citizen Watch Co. annual results published May 2026.
Related reading: Seiko Mod Complete Guide | Grand Seiko's 2017 Independence and the Boutique Decade That Followed