Yamaha cuts profit outlook as piano sales slump, tariffs bite

Published 01/08/2025, 13:52
Yamaha cuts profit outlook as piano sales slump, tariffs bite

Investing.com -- Yamaha has lowered its full-year business profit forecast due to weaker-than-expected musical instrument sales and tariff impacts.

The company reported first-quarter business profit below plan, primarily due to underperformance in its piano segment and tariff effects. While the decline in Chinese piano demand showed signs of stabilizing, global demand remained weak.

Piano sales fell 21% year-over-year in real terms, while electronic musical instruments decreased 1%. Wind, string, and brass instruments saw a modest 2% increase, with guitars performing better at 8% growth.

Regional musical instrument sales declined across all major markets, with Japan down 2%, North America falling 3%, Europe decreasing 2%, and China experiencing a steep 16% drop.

The revised full-year guidance reflects both tariff challenges and reduced expectations for musical instrument sales. Yamaha projects a net negative tariff impact of ¥5 billion year-over-year, comprising ¥11.2 billion in higher costs partially offset by ¥6.2 billion in countermeasures.

The company specifically lowered estimates for its piano product category and European regional performance.

Morgan Stanley (NYSE:MS) analysts expect a negative market reaction to the news, noting that while tariff effects may already be priced into the stock, the ongoing deterioration in musical instrument earnings and guidance below consensus raises concerns. The analysts added that reduced confidence in market recovery increases the perceived risk of prolonged earnings weakness.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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