TKLF

Good day, ladies and gentlemen. Thank you for standing by, and welcome to Tokyo Lifestyle's fiscal year 2026 earnings conference call. During today's presentation, all parties will be in a listen-only mode. This conference is being recorded today, Friday, July 10th, 2026. If you have any objections, you may disconnect at this time. Joining us today from Tokyo Lifestyle is the company's representative, Cissy Wang. Before we continue, I would like to remind you that some information discussed on this call will contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties.

The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct. The company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the company's annual report on Form 20-F and in its other filings with the SEC. With that, I will now turn the call over to Ms. Cissy Wang, the company's representative. Please go ahead.

Thank you, operator, and thank you all for joining Tokyo Lifestyle's fiscal year 2026 earnings conference call today. On today's call, I will provide an overview of our performance for the fiscal year ended March 31st, 2026, followed by a detailed review of our financial results. Fiscal year 2026 was a year of strong execution across our business, delivering robust revenue growth in all of our core operating channels. Our directly operated stores, franchise network, and wholesale operations each achieved a double-digit growth, demonstrating the effectiveness of our strategy to diversify our portfolio value, broaden our customer base, and accelerate global market expansion. This result further validates our transformation from a traditional retailer into a diversified consumer lifestyle platform, integrating retail, franchise, wholesale, and luxury goods businesses to create sustainable long-term value.

During the year, we continued advancing our asset-light growth strategy by expanding our franchise and wholesale operations with a particular focus on the high-end merchandise segment, while these channels generally generate lower gross margin than our directly operated store. They required significantly less capital investment and operating expense, allowing us to scale more efficiently and generate attractive long-term returns. As a result, the change in our revenue mix reflects a deliberate optimization of our business model rather than the deterioration in operating performance. Another standout achievement of the year was the outstanding performance of our luxury goods business. In particular, our luxury goods segment quickly emerged as a meaningful contributor to growth, reflecting strong customer demand and the successful execution of our product expansion strategy.

At the same time, continued expansion of our wholesale customer base and distribution network further strengthened our market reach, diversify our revenue stream, and enhance the resilience of our business. Supporting this growth, our total assets increased by 48% during fiscal year 2026, while we remained profitable for the third consecutive year. These achievements reflect both the continued expansion of our business and increasing strengthening of our market position. We continued strengthening our international platform by opening four new physical stores and adding 68 new wholesale customers. At the same time, we expanded strategic partnerships and continued investing in local talents and performance-based incentive programs, further enhance our organizational capabilities to support efficient and sustainable global growth. In addition, we continue optimizing our omni-channel retail network by converting selected underperforming directly operated store into franchise locations managed by experienced local partners.

This initiative have improved overall efficiency of our store network while supporting our asset-light operating model. Looking ahead, we remain committed to executing our long-term growth strategy through continued customer acquisition, stronger global brand recognition, further diversification of our product portfolio And deeper customer engagement across all sales channels. We plan to establish a new distribution center in Australia in 2026 to support inventory replenishment for our Australia retail operations, while additional distribution centers are being planned in other strategic markets. Over the next three years, we intend to open 20 additional directly operated store across the U.S., Canada, Hong Kong, Australia, Thailand and Taiwan, while adding 23 new franchise stores in Japan, Southeast Asia, Macau and Europe. As we continue executing our strategy, we remain confident in our ability to generate sustainable long-term growth and create greater value for our shareholders through disciplined execution and continued operational excellency.

Now, I would like to highlight our financial results for fiscal year 2026. Total revenue increased by 77.6%, rising from $210.1 million to $373.2 million. Revenue from our directly operated store increased by 15.7% year-over-year to $19.8 million. Revenue from our franchise stores and wholesale operations grew by 86.9% to $346.7 million. This growth was primarily driven by the significant increase luxury product sales. In addition, the expansion of our wholesale customer base further strengthened our wholesale platform, deepened supplier relationships and contributed to continued revenue growth. Gross profit increased by 17.5% to $28.1 million, compared with $23.9 million in fiscal year 2025.

Gross margin declined by 3.9 percentage points to 7.5%, primarily due to a shift in our revenue mix as our rapid growth franchise and wholesale businesses, which generally carry lower gross margin than directly operated stores, accounted for a large proportion of total revenue. Operating expenses increased by 29.6% to $24.9 million, primarily reflecting higher shipping and logistic costs associated with business growth, increased credit losses, provisions, higher payroll, employee benefits, and performance bonuses resulting from our expanding operations. Increased professional service fees and higher promotion, advertising, and lease expenses related to our directly operated store. As a result, income from operations was $3.2 million, compared with $4.7 million in fiscal year 2025. Net income was $0.7 million, compared with $6.6 million in fiscal year 2025.

The decrease was primarily attributed to tax-related factors rather than the change in our underlying operating performance. Excluding these tax impacts, our core business continued to deliver solid operating results, supported by strong revenue growth, healthy customer demand and disciplined execution. Basic earnings per share were $0.02 for fiscal year 2026, compared with $0.16 for fiscal year 2025. Diluted earnings per share were $0.02, compared with $0.16 for fiscal year 2025. As of March 31st, 2026, the company had cash and cash equivalents of $2.1 million and accounts receivable of $186.8 million due from third parties. Approximately 22.3% of this receivable has been collected subsequent to fiscal year-end, providing additional liquidity to support our working capital needs. As of March 31st, 2026, merchandise inventory totaled approximately $14.4 million.

Based on current demand trends, we believe these inventories are well-positioned to be sold within a relevant short period. For fiscal year 2026, net cash used in operating activities was $10.3 million, while net cash provided by investing activities and financing activities was $6.1 million and $4.2 million, respectively. Overall, our fiscal year 2026 results demonstrate the resilience, scalability and efficiency of our business model. Although our reported profitability was affected by tax-related items during the year, our underlying business continued to generate strong revenue growth and healthy operation performance. As the macroeconomic condition continue to improve and the consumer demand generally recovers across our key markets, we remain confident in our ability to deliver sustainable, profitable growth through disciplined execution, prudent capital allocation and continued operational excellency.

Looking ahead, we remain focused on further strengthening our financial performance through disciplined execution, effective cost management and strategic investment. At the same time, we will continue identifying new growth opportunities and expanding our revenue streams as we work to create sustainable long-term value for our shareholders. Thank you so much for joining this conference call. If you have any questions, please contact us through email at [email protected] or reach our IR counsel Ascent Investor Relations at [email protected]. Management will respond to your question as soon as possible. We appreciate your interest and support in Tokyo Lifestyle and look forward to speak with you again next time.

Thank you again for attending Tokyo Lifestyle's Fiscal Year 2026 earnings conference call. This concludes our call today, and we thank you all for listening in. Goodbye

Good day, ladies and gentlemen. Thank you for standing by, and welcome to Tokyo Lifestyle's Fiscal Year 2025 Earnings Conference Call. [Operator Instructions] This conference is being recorded today, Thursday, July 10, 2025. If you have any objections, you may disconnect at this time. Joining us today from Tokyo Lifestyle is the company's representative, Cissy Wang. Before we continue, I would like to remind you that some information discussed on this call will contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the company's registration statements and in its other filings with the SEC. With that, I would now turn the call over to Ms. Cissy Wang, the company's representative. Please go ahead.

Thank you, operator, and everyone, for joining Tokyo Lifestyle's Fiscal Year 2025 Earnings Conference Call today. On our call today, I will give an overall of our performance for the fiscal year ended March 31, 2025, followed by a detailed financial review of the company's results. In fiscal year 2025, we are pleased to report steady progress in our business growth and expansion in key markets like Hong Kong and North America. Our total revenue saw a robust growth of 7.4% for fiscal year 2025, mainly driven by the strong performance of our directly operated physical stores, franchise stores and wholesale customers. During fiscal year 2025, we continued to adjust our business layout to enhance resource allocation, improve operational efficiency and drive profitability. In response to market trends and increased competition in Japan, we optimized local operation by converting some directly operated physical stores into franchise stores to enhance cash flow and working capital, while also refining our product offerings. Consequently, our total stock keeping units increased to 201,300 SKUs during fiscal year 2025 from approximately 151,700 SKUs during fiscal year 2024, underscoring a significant growth in our product offering. In addition, revenue from new wholesale customers increased as the company continues to expand its customer base by establishing business relationships with new wholesale customers during fiscal year 2025. Meanwhile, our global market expansion progressed steadily. Notably, we successfully opened 5 new directly operated stores in the United States, Canada and Hong Kong, reinforcing our business footprint and enhancing brand recognition in these key markets. Overall, our revenue from directly operated physical stores increased by 14.4%. The expansion of our franchise and wholesale business lines also demonstrated steadily growth. We added 3 franchise stores and 54 new wholesale customers with revenue increasing by 9.1%, accounting for 88.3% of our total revenue during this period. We also remain steadfast in exploring new opportunities in emerging sectors such as collectable cards and trendy toys featuring products like Pokémon cards and BE@RBRICK, which attracts the latest fashion and the consumption trends among younger generations. Our offering in these new categories have grown to over 1,300 SKUs. And for the fiscal year 2025, our revenue from collectible cards and trendy toys totaled $11.4 million, representing 5.4% of our total revenue. During the past year, we were honored to receive a Gold Stevie Award in the Company of the Year - Retail Medium-size category at the 21st Annual International Business Awards in September 2024, underscoring market recognition of our long-term efforts and innovations. Looking ahead, we remain committed to driving sustainable growth and exploring new opportunities, while strengthening loyalty among our existing customers. In Asia and Oceanian markets, we are deepening collaboration with existing franchisees and actively seeking new partnerships to driving further development. Recently, we established new subsidiaries in Australia and plan to open new stores in Vietnam and Australia, laying strong foundation for our business expansions in these new territories. We also plan to enter the Middle East market by preparing a new store in Riyadh, Saudi Arabia. We believe these efforts will strengthen our global strategic layout and establish a more balanced market presence. We remain focused on our strategic priorities, strengthening our current market footprint, closely monitoring market trends and customer preferences, improving operational efficiency and profitability, optimizing our distribution network and commercial outlets and exploring new partnership opportunities. We are confident that these efforts will contribute to a brighter future and deliver greater value for our company and shareholders. Now I would like to share our financial results highlights of fiscal year 2025. Our total revenue increased by 7.4% from $195.7 million to $210.1 million for fiscal year 2025. During the period, our directly operated store contributed $17.1 million in revenue, representing a year-over-year growth of 14.4%. Revenue from franchise stores and wholesale customers grew by 9.1% to $185.5 million. This increase was mainly driven by our continued efforts in expanding product offerings. In addition, revenue from new wholesale customers increased as we continued to develop our customer base by establishing business relationships with new wholesale clients during fiscal year 2025. Income from operations was $4.7 million for fiscal year 2025 compared to $5.8 million for fiscal year 2024. Gross profit was $23.9 million for fiscal year 2025, representing an increase of 2.3% from $23.4 million in the previous year. Gross margin remains relatively stable at 11.4%. Operating expenses increased by 9.1% to $19.2 million, primarily attributed to increase in payroll, employee benefits and bonus expenses associated with business expansion as well as higher lease expenses for directly operated physical stores. Net income was $6.6 million compared to $7.5 million for fiscal year 2024, primarily due to loss from foreign currency exchange and a change in fair value of warrants. Basic earnings per share was $0.16 for fiscal year 2025 compared to $0.20 for fiscal year 2024. Diluted earnings per share was $0.19 for fiscal year 2025 compared to $0.20 for fiscal year 2024. As of March 31, 2025, the company had cash of $4.8 million and accounts receivable balance of $107.3 million due from third parties. Approximately 31.9% of this balance has been subsequently collected. The collection of such receivable has made cash available for use in our operational as working capital, if necessary. As of March 31, 2025, the company merchandise inventory balance amounted to approximately $4.4 million, which the company believes can be sold quickly based on analysis of the current trends in demand for our products. For fiscal year 2025, net cash used in operating activities was $0.6 million, net cash used in investing activities was $1 million and net cash provided by financing activities was $4 million. Looking ahead, we remain committed to enhancing financial performance through robust business strategies, disciplined cost management and strategic investments. We will remain focused on identifying new revenue streams and are confident that these efforts will drive sustainable long-term value for our shareholders. Thank you so much for joining this conference call. If you have any questions, please contact us through e-mail at [email protected] or reach our IR counsel, Ascent Investor Relations at [email protected]. Management will respond to your questions as soon as possible. We appreciate your interest and support in Tokyo Lifestyle and look forward to speaking with you again next time.

Thank you, again, for attending Tokyo Lifestyle's Fiscal Year 2025 Earnings Conference Call. This concludes our call today, and we thank you all for listening in. Goodbye.

Good day, ladies and gentlemen. Thank you for standing by, and welcome to Tokyo Lifestyle's First-Six Months of Fiscal Year 2025 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. This conference is being recorded today, Wednesday, December 18, 2024. If you have any objections, you may disconnect at this time. Joining us today from Tokyo Lifestyle is the company's representative, Sissi Huang. Before we begin -- before we continue, I would like to remind you that some information discussed on this call will contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations, except as may be required by law. Although, the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the company's registration statement and in its other filings with the SEC. With that, I will now turn the call over to Sissi Huang, the company's representative. Please go ahead.

Thank you, operator, and everyone for joining Tokyo Lifestyle's first-six months of fiscal year 2025 earnings conference call today. On our call today, I will give an overall of our performance of the first-six months of fiscal year 2025, followed by a detailed financial review of the company's results. In the first-six months of fiscal year 2025, we are pleased to report significant success in our business transformation and expansion in key markets, like, Hong Kong, South Asia, Europe and North America. Our total revenue saw a significant growth of 22.1% to $98 million for the six months ended September 30, 2024. As a result of the robust performance of our extensive customer base, particularly the expanding franchise network and dedicated wholesale customer base. As of September 30, 2024, we have adjusted our business strategies to optimize resource allocation, enhance operational efficiency and drive profitability. In response to market trends and increased competitive in Japan and Hong Kong, we have continued to transition underperforming directly operated physical store into franchise stores, close underperforming online stores and refine our product offering. Meanwhile, our global market expansion has progressively -- that's basically notably renewing from our five directly operated store in the United States and Canada has partially offset (ph) and revenue decline in Japan and Hong Kong. On the other hand, our franchise and wholesale business line have demonstrated significant growth with the revenue increasing by 53.8% accounting for 88.7% of our total revenue during this period. We believe that our continued focus on exploring new opportunities, while strengthening loyalty among existing customers through high-quality products and services has contributed to a steadily expanding customer base and strong financial performance. Our growth strategy and operational (ph) achievements have been recognized by both the market and industry. Notably, we are honored to have received a Gold Stevie Award in a Company of the Year Retail Medium Size category at 21st Annual International Business Award in September 2024. Behind the milestone achievement lies – lies yet ablation's (ph) growth strategy and the solid financial performance, we are grateful that our efforts and innovation over the years had garnered recognition both domestically and internationally. Looking ahead, we remain committed to driving sustainable growth and exploring new opportunities, while strengthening loyalty among our existing customers. In Asian markets, we are strengthening collaboration with existing franchises and actively seeking new partnership to drive further development. We have supported our partners in opening new franchise stores and establish strategic cooperation aimed at building a robust franchise distribution network. We believe these efforts will enhance our profitability and brand recognition alongside continued expansion. At the same time, we are actively exploring opportunities in global markets and new business sectors. Recently, we opened a new Reiwatakiya Store at Fashion Show Mall in Las Vegas, launched online platform for the Reiwatakiya brand in the U.K. and Canada, and formed a joint venture to develop the trending car (ph) retail business. This strategy initiative reflects our efforts to further strengthen our global business presence and in-house brand recognition worldwide. We remain focused on strategic priorities, strengthening our current market footprint, closely monitoring market trends and customer preferences; improving operational efficiency and profitability; optimizing our distribution network and commercial outlets; and exploring new partnership opportunities. We are confident that these efforts will contribute to a bright future and deliver greater value for our company and shareholders. Now I'd like to share our financial result highlights for the first-six months of fiscal year 2025. Our total revenue is increased by 32.1% from $74.2 million to $98 million for the six months ended September 30, 2024. During the period, our directly operated store and online sales channels contributed $11 million in revenue, despite challenging market conditions. Notably, revenue from franchised stores and wholesale customers grew by 53.8% to $86.9 million. Meanwhile, the member of wholesale customers and franchises increased by 30, from 171 as of March 31, 2024 to 201 as of September 30, 2024. This growth results from our continuous efforts to expand product offering with the total stock-keeping units rising from approximately 141,500 to 165,200 during the period. In addition, the increase was also due to the increased revenue generated from franchised stores, which previously was recognized on their physical stores as mentioned above. As well as the increased revenue from the new wholesale customers because we continue to develop our customer base by entering into business relationship with new wholesale customers during the six months ended September 30, 2024. Thanks to our robust and flexible strategies, income from operations significantly by 867.8% to $3.2 million during the six months ended September 30, 2024. Gross profit was $12.1 million for the six months ended September 30, 2024 increased by 28.4% from $9.5 million for the same period of last year. Operating expenses down by 2.2% to $8.9 million reflecting our cost control measures even as we increased the headcount to support rapid expansion. Net income decreased by 31.6% to $1.3 million, mainly due to increased loss from foreign currency exchange as well as change in fair value of warrant liabilities. Basic and diluted earnings per share was $0.03 compared to $0.05 for the same period of last year. As of September 30, 2024, the company had cash of $3.1 million and $104.3 million accounts receivable balance due from third-parties. Approximately 28.3% of balance has been subsequently collected. The collection of such receivable made cash available for use in our operational as working capital if necessary. As of September 30, 2024, the company's merchandise inventories balance amounted to approximately $7.4 million, which the company believes can be sold quickly based on the analysis of the current trend in demand for our products. For the six months ended September 30, 2024, net cash used in operating activities was $2 million; net cash used in investing activities was $0.6 million; net cash provided by financing activities was $2.5 million. Looking ahead, we remain committed to enhancing financial performance through robust business strategies, disciplined cost management and strategic investments. We will remain focused on identifying new revenue streams and are confident that these efforts will drive sustainable long-term values for our shareholders. Thank you so much for joining this conference call today. If you have any questions, please contact us through e-mails at [email protected] or reach our IR counsel, Ascent Investor Relations at [email protected]. Management will respond to your questions as soon as possible. We appreciate your interest and support in Tokyo Lifestyle and look forward to speaking with you again next time. Thank you.

Thank you again for attending Tokyo Lifestyle's first-six months of fiscal year 2025 earnings conference call. This concludes our call today and we thank you all for listening in. Good-bye and have a wonderful day.

Good day, ladies and gentlemen. Thank you for standing by and welcome to Yoshitsu's Fiscal Year 2024 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. This conference is being recorded today, July 16, 2024. If you have any objections, you may disconnect at this time. Joining us from Yoshitsu are the company's Principal Executive Officer, Mr. Mei Kanayam; the company's Principal Accounting and Financial Officer, Mr. Youichiro Haga; and the company's representative, Ms. Sissi Huang. Ms. Sissi Huang will deliver the remarks of the company's Principal Executive Officer and company's Principal Accounting and Financial Officer in English. Before we continue, I would like to remind you that some information discussed on this call will contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward looking statements involve known and unknown risks and uncertainties. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct. The company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the company's registration statement and in its other filings with the SEC. With that, I will now turn the call over to Sissi Huang, the company's representative. Ms. Huang, please go ahead.

Thank you, operator and everyone for joining Yoshitsu's fiscal year 2024 earnings conference call today. On our call today, I will give an overall of our performance for fiscal year 2024 and then share the details of the company's financial review. In fiscal year 2024, we are pleased that we have achieved remarkable success in our newly-launched luxury products as well as our expansion in key markets like Japan and Hong Kong, the United States and Canada. Our total revenue surged by 50.3% to $195.7 million in fiscal year 2024. Our strategic expansion into North America incorporating several new subsidiaries and opening new stores in the U.S. and Canada, which has made significant contribution to our revenue growth. We also introduced luxury products, significant boost in sales in our directly operated physical stores, franchise store and among wholesale customers. Furthermore, we decided to concentrate our management resources on core businesses and improve operation efficiency. To mitigate online sales volatility, we have strengthened our wholesale and franchise store network. These measures have enhanced our adaptability and resilience, enable us to withstand economic headwinds in the current market environment. Looking ahead, we are dedicated to driving sustainable growth and creating long-term value for our shareholders. We believe in our revolving strategy and constant endeavors to execute dedication of our employees and unwavering support and trust from our partners and shareholders. We are continuing our efforts to explore sales opportunities. We also continue exploring new markets, while enhancing our current presence by analyzing customer trends in different regions, focusing on improving customer install experience, further expanding our distribution network and exploring new partnership opportunities. In particular, during the next three years, we intend to open 10 additional directly operated physical stores in Hong Kong and 50 new franchise stores in the U.S., Canada, Australia, New Zealand, the UK, Singapore, Malaysia, Thailand and Taiwan. Furthermore, we strive to improve our profitability by saving operating expenditure and transforming some of the directly operated physical store into franchise stores. In addition, we continue expanding our product offering by cooperating with beauty products and other product suppliers to develop our new private label products. We believe, this can help us attract new customers and encourage repeat visits, which will eventually support our revenue growth. Next, I will turn to a closer review of our financials of fiscal year 2024 on behalf of the management team. Our total revenue increased by 50.3% to $195.7 million for fiscal year 2024. Our revenue from directly operated physical stores was up by a double-digit growth of 28.8% to $15 million for fiscal year 2024. During fiscal year 2024, we started to offer luxury products, which contributed a significant portion of increased directly operated store sales in fiscal year 2024. The increase in directly operated store sales was also due to revenue contributed from our newly opened physical stores in the United States and Canada, which was partially offset of the decreased revenue as a result of the transformation of four physical stores in Japan during fiscal year 2024. The transformation of the physical store in Japan was because this store has been underperformant and we transformed this store into franchise stores to improve our cash flow and working capital. After the change, these physical stores purchased products from us, like other franchise store and hence, this portion of revenue was recorded under franchise stores and wholesale customers. Revenue from franchise stores and wholesale customers was up by 23.7% to $117 million for fiscal year 2024. The increase was mainly due to expansion of product offering, as we started to offer luxury products and electronic products that have higher unit selling price. Meanwhile, the increase was also due to increase the revenue generated from franchise stores, when previously was recognized on their physical stores, as mentioned above, as well as increased revenue from some new wholesale customers, whom we entered into business relationship during fiscal year 2024. The increase was partially offset by the decreased sales of beauty products to wholesale customers as the demand of Japanese beauty products declined in China market. Gross profit was $23.4 million for fiscal year 2024. Gross margin was 11.9% for fiscal year 2024. Operating expenses down by 38.4% to $17.6 million for fiscal year 2024. The decrease in operating expenses was primarily attributable to decrease in allowance for credit loans, shipping expenses, promotion and advertising expenses, payroll employee benefits expenses and bonus expenses and transaction commission, which was partially offset by an increase in professional service fees. Net income increased to $7.5 million for fiscal year 2024 from a net loss of $8 million for fiscal year 2023. Basic and diluted earnings per share was $0.2 for fiscal year 2024, compared to a loss per share of $0.22 for fiscal year 2023. As of March 31, 2024 the company had cash of $2.5 million. As of March 31, 2024 the company had $105.4 million accounts receivable balance due from third parties. Approximately 35.4% of the March 31, 2024 balance has subsequently been collected and the majority of the remaining balance is expected to be collected by December 31, 2024. The collection of such receivable made cash available for use in operation as working capital if necessary. As of March 31, 2024 the company had merchandise inventory of $4.4 million, which we believe can be sold quickly based on its analysis of current trend in demand for its products. For fiscal year 2024, net cash provided by operating activities was $1.9 million. Net cash provided by investing activities amounted to $2.7 million. Net cash used in financing activities was $1.7 million. We are pleased to see substantial improvement in our financial performance for fiscal year 2024. This positive outcome is a result of our focused efforts on cost management, strategic investment and revenue growth. We also achieved a notable reduction in interest expenses. Thanks to our strategic debt management and favorable loan conditions and we saw a significant increase in other income, mainly from the disposal of property and equipment. Looking forward, we will continue to focus on enhancing our financial performance through disciplined cost management, strategy investment and exploring new revenue streams. We are confident that these efforts will drive long-term value for our shareholders and stakeholders. Thank you so much for joining this conference call. If you have any questions, please contact us through e-mail at [email protected] or reach our IR counsel Ascent Investor Relations at [email protected]. Management will respond to your questions as soon as possible. We appreciate your interest and support in Yoshitsu and look forward to speaking with you again next time.

Thank you again for attending the Yoshitsu’s fiscal year 2024 earnings conference call. This concludes our call today, and we thank you all for listening in. Goodbye.