Seria released solid FY3/26 results on 5/8/28: operating profit rose 24.5% YoY, and the OP margin improved to 8.2% from 7.12% a year earlier. The company raised guidance three times during the fiscal year, and FY3/26 OP ultimately exceeded the most recent upward revision on 1/30/26 by 8%.

Even so, the stock gained only about 6% the following day, which felt muted relative to the strength of the results. I raised this with CEO Mr. Kawai. His view is that investors are still assessing whether Seria can deliver sustained growth as a survivor in the 100‑yen store segment. He added that the current ~20x PE is reasonable because the market is still waiting for proof that Seria will ultimately emerge as the last one standing.

One immediate concern is whether growth has already peaked, helped by the recent boom in high‑margin seal products.

Seria’s real‑time sales and inventory system shows that seal sales actually peaked several months ago, but seals account for only about 2% of total sales. With 28,000 SKUs and 500–600 refreshed each month, the business is not dependent on this category. Seria continues to enjoy above‑peer operating margins, supported by its data‑driven merchandising and inventory model.

Because competitors could theoretically replicate parts of this approach, the sustainability of Seria’s model (i.e., can it enjoy the survivor benefits in the 100 yen store) was the central theme of my discussion with Mr. Kawai, who originally designed the company’s POS system.

As an aside, when I asked why Seria’s shares are so popular among foreign investors, he suggested that foreign investors might value the company’s transparency — including his own candid style.

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