Star seeds Co., Ltd.
3083・Standard Market・Retail Trade
Business
Star Seeds Co., Ltd. is an apparel and lifestyle goods chain company operating multiple brands—casual wear "METHOD," Japanese-taste "Ryugi Assaku," and premium menswear "TORNADO MART" and "HIGH STREET"—across shopping centers, department stores, and fashion buildings nationwide. Its consolidated subsidiaries include "Chicacaca" (33 stores), an ethnic casual brand, "MF6," which sells antiques via SNS live commerce, and "Miyama," a building maintenance company. Its primary customers are enthusiasts of casual, ethnic, and menswear fashion, and it covers both suburban shopping centers and urban fashion buildings. As of the end of FY2025 (ended February 2025), the company operated 16 stores in its Select business, 23 stores in its Brand business, and 33 Chicacaca stores. It is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The core model is a vertically integrated approach in which apparel and general merchandise, sourced from trading companies and manufacturers or planned and manufactured in-house, is sold through nationwide directly-operated stores and e-commerce. In addition, subsidiary MF6 operates a digital channel selling antique merchandise via SNS live commerce. The gross profit margin stood at 54.03% in FY2025 (ended February 2025), but selling, general and administrative expenses remain elevated at ¥3,043 million, and operating losses have continued. The building maintenance business (net sales of ¥363 million) serves as a supplementary source of revenue.
Company Strengths
The gross profit margin for FY2025 (ending February 2025) was 54.03% (gross profit of ¥2,761 million). Through thorough implementation of discount-suppression measures and an increase in the proportion of original products, the gross margin has trended upward even amid declining customer traffic. The company maintains a relatively high level compared to the apparel retail industry.
MF6, which became a subsidiary in January 2025, has acquired over 100,000 followers through SNS live commerce for imported European antique merchandise. It has established a passionate fan base in a niche market and is expected to serve as a new revenue source contributing to the strengthening of digital sales channels.
As of the end of FY2025 (ending February 2025), the company operated a nationwide network of over 72 stores in total, comprising 16 stores in the Select business, 23 stores in the Brand business, and 33 Chikacaca stores. While the Kanto region accounts for 48.8% of sales, sales are also distributed across the Chubu (18.2%) and Kinki (14.2%) regions, giving the company a wide-area network that diversifies regional risk.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years peaked at ¥6,306 million in FY2023 (ended February 2023), then declined for two consecutive years to ¥5,110 million in FY2025 (ended February 2025). In FY2026 (ended February 2026), revenue recovered sharply to ¥10,382 million, driven by contributions from new businesses such as grid-connected storage batteries and GPU servers, and operating profit reached ¥185 million, marking the company's first profitable year. In Q1 FY2027 (ending February 2027) (March–May), revenue was ¥5,345 million (up 316.9% year on year from ¥1,282 million), and the company maintained profitability with operating profit of ¥53 million. The GPU server and related business (¥4,483 million) accounted for the majority of revenue, with the global expansion of AI computing demand serving as a powerful external tailwind. The full-year forecast anticipates substantial growth, with revenue of ¥30,000 million, operating profit of ¥1,450 million, and net income of ¥600 million (up 934.4% year on year).
Growth Strategy
Three-pillar growth strategy through expansion of the two new businesses—GPU servers and related operations, and grid-connected storage batteries—combined with profit improvement in the apparel business
The company continues to promote orders and delivery for large-scale AI infrastructure projects while aiming to transform into an E2E solutions provider that offers AI servers, liquid cooling systems, and AI infrastructure as an integrated package. In March 2026, a memorandum of strategic collaboration for liquid-cooled AI data center solutions was concluded, and from May of the same year, full-scale efforts began to build a domestic AI server production system in collaboration with a domestic EMS company.
The company continues its flow-type model of acquiring and selling grid-connected storage battery development projects as real estate for sale. In Q1, delivery of the Kitsuki City, Oita Prefecture storage battery facility was completed, and sale agreements were concluded for the facilities in Soo City, Kagoshima Prefecture and Nagano City, Nagano Prefecture. Projects in Ise City, Mie Prefecture and Chita County, Aichi Prefecture are scheduled to commence operation in January 2027.
The company aims to improve its gross profit margin through raising the proportion of private brand (PB) products, collaboration projects (such as with Chibi Maruko-chan), the rollout of the new label "TØRUNE," and the enhancement of functional material products. In Q1, 6 new stores were opened, bringing the total to 65 stores. A segment loss of ¥47 million continues, and reviewing unprofitable stores and improving inventory efficiency remain challenges.
Under the holding company structure adopted in June 2025, the company has implemented thorough monthly budget-to-actual management and cash flow management. In June 2026, the 8th to 10th series of stock acquisition rights were issued through a third-party allotment (proceeds of ¥29 million), securing an unexercised balance of 120,000 units (12,000,000 shares). Resolving negative operating cash flow remains an ongoing challenge.
Last updated: July 17, 2026