Cheap Watches, Big Profits: Casio’s Unexpected Lifeline
Casio’s fiscal 2026 earnings just landed—and net profit more than doubled to ¥18.2 billion (about $115 million). That’s not a typo. Revenue climbed 5.5% to ¥276.3 billion (~$1.74 billion), and operating profit surged 62% to ¥23.1 billion (~$146 million). For a company that was barely treading water two years ago, this is a sharp course correction.
Gen Z’s Vintage Obsession Is Casio’s Secret Sauce
Surprisingly, the hero of this comeback isn’t the G-Shock, Casio’s marquee tough-guy watch. It’s the low-cost, retro “Casio Watch” line: slim, lightweight models like the A159 and MTP-1302 that sell for $50-$70. These were never supposed to be cool again. Yet, Gen Z has revived them as vintage staples. Casio’s savvy Korea-focused social media push ignited a trend that’s spreading across Asia—and beyond.
Demand Outpaced Supply: A Good Problem to Have
The watch division hauled in ¥185 billion (~$1.17 billion) at a solid 14.7% operating margin. However, Q3 demand was so hot that many popular G-Shock models ran out of stock in Q4. Production ramped up, but could only partially fill the gap. It’s a rare hiccup that signals strong market appetite rather than weakness.
Looking Forward: Modest Growth, High Stakes
Casio projects revenue to hit ¥295 billion (~$1.86 billion) this year, with an operating margin target of 11.1% by 2029. The company’s betting that its blend of nostalgic, affordable watches plus the perennial G-Shock will keep the momentum alive. But can it sustain this growth in a fickle market?
GizmoIndo’s Take
Casio’s resurgence is a textbook example of how legacy brands can capitalize on overlooked assets. The cheap retro watches were dismissed for years, yet they proved irresistible to a younger crowd craving authenticity—and thrift. This isn’t some flashy tech innovation; it’s low-price nostalgia meeting social media savvy. The catch? The surge feels regionally concentrated for now, and supply chain glitches show Casio still isn’t fully prepared for a boom.
More importantly, Casio’s story exposes a blunt truth: high-end gadget hype isn’t the only path to profit. Sometimes, selling cheap and simple—if the timing and marketing align—can turn a sinking ship. The question is whether Casio can keep these vintage models fresh or if Gen Z’s attention will drift elsewhere. For now, the company is riding a wave few expected, but don’t hold your breath for a permanent return to glory just yet.
(Via)
