Nikon Cuts Camera and Lens Sales Projections Amid Slow Start to the Fiscal Year

Nikon has adjusted its sales forecasts for interchangeable-lens cameras and lenses for the fiscal year 2027, mainly due to weaker demand in China and rising memory costs. In the first quarter, Nikon's operating profit dropped to 8.1 billion yen from 11.1 billion yen last year, even with a small revenue uptick. The Imaging Products segment saw a revenue decline of 7.1 billion yen, nearly $44.8 million, attributed to fewer digital ILC sales. The ILC market projection for FY2027 is now 6.7 million units, a 300,000 unit decrease, with expectations of selling 850,000 cameras. Lens sales estimates fell from 1.3 million to 1.25 million out of a total market of 10 million. In Q1, Nikon sold 210,000 cameras and 310,000 lenses, down from 270,000 and 370,000 last year. They also received 4.0 billion yen in U.S. tariff refunds, helping to mitigate losses, but faced 4.1 billion yen in inventory write-downs in Precision Equipment. Nikon has lowered its first-half revenue expectations for Imaging Products by 13 billion yen and profit estimates by 3 billion yen, though it anticipates a slight increase in overall annual profit. Its last new camera, the video-focused ZR, debuted in September last year. Despite these challenges, Nikon is hopeful about the long-term future of the ILC market.