TKLF

This article first appeared on GuruFocus. Release Date: July 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tokyo Lifestyle Co Ltd (NASDAQ:TKLF) achieved robust revenue growth across all core operating channels, with double-digit growth in directly operated stores, franchise network, and wholesale operations. The company successfully advanced its asset-light growth strategy, focusing on high-end merchandise segments, which required less capital investment and operating expenses. The luxury goods segment emerged as a significant contributor to growth, reflecting strong customer demand and successful product expansion. Total assets increased by 48% during fiscal year 2026, indicating strong business expansion and market position strengthening. The company plans to open 20 additional directly operated stores and 23 new franchise stores in various strategic markets over the next three years, showcasing a commitment to global expansion. Gross margin declined by 3.9 percentage points to 7.5%, primarily due to a shift in revenue mix towards lower-margin franchise and wholesale businesses. Operating expenses increased by 29.6%, driven by higher shipping and logistic costs, increased credit loss provisions, and higher payroll and employee benefits. Net income decreased significantly from $6.6 million in fiscal year 2025 to $0.7 million in fiscal year 2026, primarily due to tax-related factors. Basic and diluted earnings per share dropped from $0.16 in fiscal year 2025 to $0.02 in fiscal year 2026. Net cash used in operating activities was $10.3 million, indicating challenges in cash flow management despite revenue growth. Warning! GuruFocus has detected 8 Warning Signs with TKLF. Is TKLF fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the factors driving the significant revenue growth in fiscal year 2026? A: Cissy Wang, Investor Relations Manager: The robust revenue growth of 77.6% was driven by double-digit growth across our core operating channels, including directly operated stores, franchise networks, and wholesale operations. The luxury goods segment, in particular, emerged as a significant contributor due to strong customer demand and successful product expansion. Q: How did the shift in revenue mix impact gross margins? A: Cissy Wang, Investor Relations Manager: The shift towards franchise and wholesale operations, which generally have lower gross margins than directly operated stores, led to a decline in gross margin by 3.9 percentage points to 7.5%. This change reflects a strategic optimization of our business model rather than a deterioration in performance. Q: What were the main reasons for the decrease in net income despite revenue growth? A: Cissy Wang, Investor Relations Manager: The decrease in net income to $0.7 million from $6.6 million was primarily due to tax-related factors. Excluding these impacts, our core business continues to deliver solid operating results with strong revenue growth and healthy customer demand. Q: Can you provide more details on the company's asset-light growth strategy? A: Cissy Wang, Investor Relations Manager: We focused on expanding our franchise and wholesale operations, particularly in the high-end merchandise segment. This strategy requires less capital investment and operating expenses, allowing us to scale efficiently and generate attractive long-term returns. Q: What are the future expansion plans for Tokyo Lifestyle? A: Cissy Wang, Investor Relations Manager: Over the next three years, we plan to open 20 additional directly operated stores in the US, Canada, Hong Kong, Australia, Thailand, and Taiwan, and add 23 new franchise stores in Japan, Southeast Asia, Macau, and Europe. We also plan to establish a new distribution center in Australia in 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

TOKYO, July 10, 2026 /PRNewswire/ -- Tokyo Lifestyle Co., Ltd. ("Tokyo Lifestyle" or the "Company") (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys as well as other products in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia, today announced its financial results for the fiscal year ended March 31, 2026 ("fiscal year 2026"). Mr. Mei Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented: "Fiscal year 2026 was a year of strong execution across our business, resulting in robust revenue growth driven by continued expansion of our directly-operated stores, franchise network, and wholesale operations, all of which achieved double-digit growth. We believe that these results demonstrate the effectiveness of our strategy to diversify our product portfolio, broaden our customer base, and accelerate our global market expansion. Tokyo Lifestyle is evolving beyond a traditional retailer into a diversified consumer lifestyle platform with complementary retail, franchise, wholesale, and luxury goods businesses, pursuing multiple drivers for sustainable long-term growth. "As part of this transformation, we continued to advance our asset-light growth strategy by accelerating the expansion of our franchise and wholesale businesses, particularly in the high-end merchandise segment. While these businesses generally carry lower gross margins than our directly-operated retail operations, they require significantly less capital investment and operating expenses, enabling faster, more efficient scaling. Accordingly, the changes in our revenue mix should be viewed as a deliberate optimization of our business model designed to enhance long-term returns, rather than a reflection of weaker operating performance. "A key highlight was the outstanding performance of our luxury goods business, which quickly emerged as a meaningful growth driver. At the same time, continued expansion of our wholesale customer base and broader distribution network strengthened market reach, diversified our revenue streams, and enhanced the resilience of our business. "Our total assets increased by 48% during fiscal year 2026 while we remained profitable for the third consecutive year, reflecting our continued business expansion and growing market presence. "We also continued strengthening our international platform by expanding our international presence. During the year, we opened new stores in Hong Kong and Australia, expanded strategic partnerships, and continued investing in local talent and performance-based incentive programs. These initiatives further strengthen our organizational capabilities to support continued global expansion efficiently. "In addition, we continued optimizing our omnichannel retail network by converting selected underperforming directly-operated stores into franchise locations operated by experienced local partners. "Looking ahead, we remain focused on executing our long-term growth strategy through continued customer acquisition, broader global brand recognition, an increasingly diversified product portfolio, and deeper customer engagement." Mr. Youichiro Haga, Principal Accounting and Financial Officer of Tokyo Lifestyle, remarked: "We are pleased to report a 77.6% year-over-year increase in revenue, and more importantly, this strong growth was achieved along with disciplined cost management. Although we continued investing in marketing, brand development, and global expansion initiatives, operating expenses grew at a significantly slower pace than revenue -- 29.6% versus 77.6% -- reducing operating expenses as a percentage of revenue from 9.1% to 6.7%. This demonstrates the scalability of our operating model and our ability to generate increasing operating leverage as the business expands. "Specifically, during the fiscal year, revenue from our directly-operated physical stores increased by 15.7%, demonstrating the resilience of our core retail business, while franchise and wholesale revenue grew by 86.9%, driven primarily by more than 320% growth in our luxury goods business and the addition of 68 new wholesale customers. This balanced growth across both retail and asset-light channels underscores the increasing diversification and scalability of our business. "Accounts receivable increased by 74.1% year over year, broadly in line with our revenue growth. This primarily reflects the rapid expansion of our wholesale and franchise businesses, together with the continued growth of our international distribution network. Although higher accounts receivable and increased working capital requirements temporarily affected cash balances and operating cash flow, we view these changes as a natural consequence of the continued rapid growth rather than a deterioration in earnings quality or financial fundamentals. "Beyond revenue growth, we delivered meaningful improvements in profitability. Gross profit from directly-operated physical stores and online business each increased by over 20%, supported by improved gross margins resulting from a more optimized product mix and disciplined inventory management. Gross profit from franchise and wholesale business also increased by 15.5%. While this segment carries a comparatively lower gross margin, it requires significantly lower operating costs and capital investment, further enhancing the efficiency, scalability, and returns of our overall business model. As a result of the changes in our business structure, particularly the increased proportion of wholesale and luxury goods, our gross profit increased by 17.5% with a moderate decline in gross margin. Despite a limited short-term impact on operating profit, we believe the existing strategy will improve capital efficiency, accelerate market expansion, strengthen our digital capabilities, and further enhance the flexibility and scalability of our business model over the long term. "Our international expansion also continued to gain momentum, with overseas sales accounting for 47.1% of total revenue. This was supported by increasing contributions from Hong Kong and other overseas markets, along with continued expansion of our global retail footprint. We believe our growing international presence will further strengthen brand recognition, diversify revenue base, and create additional long-term growth opportunities. "Overall, fiscal year 2026 results demonstrate the resilience, scalability, and financial quality of our business model. While reported net income and earnings per share declined year over year, this was primarily attributable to tax-related factors rather than changes in our underlying operating performance. Excluding these items, our core business continued to deliver solid operating performance, supported by strong revenue growth, healthy customer demand, and disciplined execution. "As macroeconomic conditions continue to improve with recovering consumer demand across our key markets, we remain confident in our ability to generate sustainable, profitable growth through disciplined capital allocation, prudent financial management, and continued operational excellence." Fiscal Year 2026 Financial Summary Total revenue was $373.2 million for fiscal year 2026, which increased by 77.6% from $210.1 million for the fiscal year ended March 31, 2025 ("fiscal year 2025"). Gross profit was $28.1 million for fiscal year 2026, which increased by 17.5% from $23.9 million for fiscal year 2025. Income from operations was $3.2 million for fiscal year 2026, compared to $4.7 million for fiscal year 2025. Net income decreased to $0.7 million for fiscal year 2026, compared to $6.6 million for fiscal year 2025. Net cash provided by investing activities increased to $6.1 million for fiscal year 2026, from net cash used in investing activities of $1.0 million for fiscal year 2025. Basic earnings per share was $0.02 for fiscal year 2026. Diluted earnings per share was $0.02 for fiscal year 2026. Fiscal Year 2026 Financial Results Revenue Revenue increased by 77.6%, to $373.2 million for fiscal year 2026, from $210.1 million for fiscal year 2025. The increase in the Company's revenue consisted of increased revenue from directly-operated physical stores and franchise stores and wholesale customers, which was partially offset by the decreased revenue from online stores and services. Revenue generated from companies located in Japan accounted for 52.9% and 70.5% of the Company's total revenue for fiscal years 2026 and 2025, respectively. Revenue generated from companies located in Hong Kong and others accounted for 47.1% and 29.5% of the Company's total revenue for fiscal years 2026 and 2025, respectively. Revenue denominated in Japanese Yen increased by 75.7%, to ¥56,134.8 million for fiscal year 2026, from ¥31,952.8 million for fiscal year 2025. The increase was mainly due to increased revenue from franchise stores and wholesale customers by 84.9%, to ¥52,170.1 million for fiscal year 2026, from ¥28,215.6 million for fiscal year 2025, as well as increased revenue from directly-operated physical stores by 14.2%, to ¥2,965.5 million for fiscal year 2026, from ¥2,597.6 million for fiscal year 2025. The increase was partially offset by the decreased revenue from online stores and services by 12.3%, to ¥999.3 million for fiscal year 2026, from ¥1,139.6 million for fiscal year 2025. Note: Amounts may not sum due to rounding. Revenue from directly-operated physical stores increased by 15.7%, to $19.8 million for fiscal year 2026, from $17.1 million for fiscal year 2025. The increase was mainly due to increased revenue generated from the Company's existing directly-operated physical stores in Hong Kong as a result of their full-year operations, as well as the opening of two new physical stores in Hong Kong during fiscal year 2026. In addition, the Company offered promotion activities and price discounts, which attracted more customers to make purchases at the Company's physical stores, and revenue from the Company's existing physical stores in Hong Kong also increased in fiscal year 2026, compared to the prior year. The above-mentioned increase was partially offset by a decrease in revenue from directly-operated physical stores in Japan, resulting from the closure of one physical store and the transformation of another physical store during fiscal year 2026. The Company proactively optimized its store structure and converted this underperforming physical store in Japan into a franchise store, in order to improve the Company's cash flow and working capital. Following the change, the store began purchasing products from the Company like other franchise stores, and accordingly, the related revenue was recorded under franchise stores and wholesale customers. Revenue from online stores and services decreased by 10.7%, to $6.7 million for fiscal year 2026, from $7.5 million for fiscal year 2025. The decrease was mainly due to a reduction in the number of online stores, as the Company closed certain underperforming online stores to improve the Company's profitability. The decrease was partially offset by an increase in revenue from services, which resulted from new customers that the Company developed. Revenue from franchise stores and wholesale customers increased by 86.9%, to $346.7 million for fiscal year 2026, from $185.5 million for fiscal year 2025. The increase was mainly due to the substantial growth in revenue from sales of luxury products. During fiscal year 2026, the Company successfully achieved a strategic expansion that more than doubled revenue from franchise stores and wholesale customers and meaningfully expanded the Company's market share. This deliberate strategy strengthens the Company's wholesale platform and supplier relationships. In addition, there was increased revenue from the new wholesale customers as the Company continued to expand the Company's customer base by entering into business relationships with new wholesale customers during fiscal year 2026. Cost of Revenue Total cost of revenue increased by 85.3%, to $345.1 million for fiscal year 2026, from $186.2 million for fiscal year 2025. Gross Profit and Gross Margin Gross profit increased by 17.5%, to $28.1 million for fiscal year 2026, from $23.9 million for fiscal year 2025. The increase was mainly attributable to the overall increase in revenue. Gross margin decreased by 3.9 percentage points to 7.5% for fiscal year 2026, from 11.4% for fiscal year 2025. The decrease in overall gross margin was primarily attributable to shifts in the Company's revenue mix, as revenue from franchise stores and wholesale customers, which carry relatively lower gross margins, accounted for a significantly larger proportion of total revenue during fiscal year 2026. Operating Expenses Operating expenses consist of selling and marketing expenses and general and administrative expenses, which primarily include payroll, employee benefit expenses and bonus expenses, shipping expenses, promotion and advertising expenses, and other facility-related costs, such as store rent, utilities, and depreciation. Operating expenses increased by 29.6%, to $24.9 million for fiscal year 2026, from $19.2 million for fiscal year 2025. Operating expenses as a percentage of total revenue improved to 6.7% for fiscal year 2026 from 9.1% for fiscal year 2025. This 2.4 percentage points decline reflects early operating leverage across the Company's business, as the Company's revenue scaled faster than the Company's operating cost base. The increase in operating expenses was primarily attributable to the following factors: an increase in other expenses by 46.4%, to $8.4 million for fiscal year 2026, from $5.7 million for fiscal year 2025. The increase was mainly due to higher shipping expenses and other costs resulting from the growth in the scale of the Company's operations; an increase in provision for credit losses by 515.4%, to a provision for credit losses of $0.9 million for fiscal year 2026, from a net recovery of credit losses of $0.2 million for fiscal year 2025. The increase in the provision for credit losses was mainly due to the significant increase in revenue and accounts receivable from franchise stores and wholesale customers, which resulted in a larger provision for credit losses during fiscal year 2026; an increase in payroll, employee benefit expenses, and bonus expenses by 13.1%, to $7.4 million for fiscal year 2026, from $6.5 million for fiscal year 2025. The increase was mainly due to the increased headcount caused by the expansion of the Company's business operations; an increase in professional service fees by 19.4%, to $3.9 million for fiscal year 2026, from $3.2 million for fiscal year 2025. The increase was mainly due to higher service fees incurred to accelerate the collection of accounts receivable, partially offset by a decrease in professional fees paid for a series of financial investigation services that were required by banks in connection with the Company's borrowings; an increase in promotion and advertising expenses by 361.9%, to $0.8 million for fiscal year 2026, from $0.2 million for fiscal year 2025. The increase was mainly due to the Company's intensified advertising and promotional efforts during fiscal year 2026 to drive sales revenue growth; an increase in lease expenses by 13.3%, to $2.8 million for fiscal year 2026, from $2.5 million for fiscal year 2025. The increase was mainly due to the opening of new physical stores in Hong Kong and Australia in fiscal year 2026; and a decrease in transaction commission paid to third-party e-commerce marketplace operators by 39.4%, to $0.8 million for fiscal year 2026, from $1.3 million for fiscal year 2025. The Company paid third-party e-commerce marketplace operators transaction commission ranging from 1.8% to 3.0% based on the Company's sales amount. The decrease in transaction commission was in line with the decrease in the Company's online sales. Interest Expenses, net Interest expenses, net included interest expenses calculated at interest rate per loan agreements and loan service costs, which were directly incremental to the loan agreements and amortized over the loan periods. Interest expenses, net increased by 15.2%, to $2.0 million for fiscal year 2026, from $1.7 million for fiscal year 2025. The increase was mainly due to an increase in interest expenses of $0.6 million, which was mainly due to the increased weighted average interest rate for fiscal year 2026, which was partially offset by the decrease in amortized loan service costs in relation to the Company's syndicated loans by $0.3 million. Additional and Delinquent Tax Due to Consumption Tax Correction Since January 2022, the Tokyo Regional Taxation Bureau had conducted a tax examination into the Company's consumption tax filing for the period from July 2018 to December 2021. As a result of the examination, the Company was required to return consumption tax refund for export transactions that were determined not to meet the tax exemption requirements due to incomplete submission of relevant export documents. As the failure in submission of relevant export documents was caused by the Company's suppliers and customers, the Company entered into agreements with relevant suppliers and customers to claim compensation for damages from the additional consumption tax payment. On July 31, 2023, the Company received a reassessment notice from the Tokyo Regional Taxation Bureau, for additional consumption tax liability on a period-by-period basis. Based on this reassessment, the Company recognized the additional tax for understatement and delinquent tax of $0.6 million during fiscal year 2024. However, the Company contested this reassessment and filed a request for review with the National Tax Tribunal on February 22, 2024, challenging the legality of the reassessment decision and the imposition of additional tax penalties. On February 13, 2025, the Company received a ruling from the National Tax Tribunal, dated February 12, 2025, which upheld the Company's request and annulled the disposition. Accordingly, the Company recorded a recovery of $3.9 million during fiscal year 2025, representing the reversal of upward consumption tax adjustments and the corresponding understatement surcharges and delinquent taxes imposed under the now-annulled reassessment. As the annulment also invalidated the downward consumption tax adjustments granted by the tax bureau for certain other filing periods, the Company was required to reinstate those tax liabilities to the amounts set forth in its original amended return. Therefore, during fiscal year 2026, the Company recognized $2.2 million in additional consumption tax and related understatement surcharges. Other Income, net Other income, net primarily includes tax refund, disposal gain or loss from property and equipment, government subsidy, and other immaterial income and expense items. Other income, net increased by 700.7%, to $2.9 million for fiscal year 2026, from $0.4 million for fiscal year 2025. The increase was mainly due to the increased gain from disposal of property and equipment as compared to the same period last year. Gain (loss) from Foreign Currency Exchange Gain from foreign currency exchange was $0.4 million for fiscal year 2026, as compared to a loss from foreign currency exchange of $0.4 million for fiscal year 2025. The gain from foreign currency exchange was mainly due to the fluctuations in foreign exchange rates on the Company's accounts receivable that denominated in foreign currencies such as the U.S. dollar during fiscal year 2026. It was also due to the gain from foreign currency exchange by the Company's Hong Kong subsidiaries, which was mainly due to the significant fluctuations of foreign exchange rate on its payables that were denominated in Japanese Yen during fiscal year 2026. Provision (Benefit) for Income Taxes Provision for income taxes was $3.1 million for fiscal year 2026, compared to an income tax benefit of $1.9 million for fiscal year 2025. The provision for income taxes increased by 264.8%. The increase was mainly due to (i) higher current income tax expenses resulting from increased taxable income during fiscal year 2026; (ii) the refund of tax recognized in the prior fiscal year following the ruling from the National Tax Tribunal, dated February 12, 2025, which increased the income tax benefit for fiscal year 2025; and (iii) increased deferred income tax expenses arising from additional deferred tax liabilities resulting from the increase in the change in fair value of warrants liabilities during fiscal year 2026. Net Income Net income decreased to $0.7 million for fiscal year 2026, compared to $6.6 million for fiscal year 2025. Basic and Diluted Earnings per Share Basic earnings per share was $0.02 for fiscal year 2026, compared to $0.16 for fiscal year 2025. Diluted earnings per share was $0.02 for fiscal year 2026, compared to $0.16 for fiscal year 2025. Financial Condition As of March 31, 2026, the Company had $2.1 million in cash as compared to $4.8 million as of March 31, 2025. As of March 31, 2026, the Company also had approximately $186.8 million in account receivable balance due from third parties. Approximately 22.3% of the March 31, 2026 balance has subsequently been collected, and the majority of the remaining balance is expected to be collected by December 31, 2026. The collection of such receivables made cash available for use in the Company's operations as working capital, if necessary. Net cash used in operating activities was $10.3 million for fiscal year 2026, mainly derived from net income of $0.7 million for the year, and net changes in the Company's operating assets and liabilities, which mainly included increased accounts receivable of $87.3 million, increased merchandise inventories of $10.7 million, decreased accounts payable to related parties of $2.7 million and decreased operating lease liabilities of $2.5 million, which was partially offset by the increased accounts payable of $86.3 million, increased deferred revenue of $1.3 million and increased other payables and other current liabilities of $1.2 million. Net cash provided by investing activities amounted to $6.1 million for fiscal year 2026, mainly due to proceeds from disposal of property and equipment in the aggregate amount of $7.0 million, partially offset by an investment in a life insurance policy of $0.6 million, and purchases of property and equipment of $0.3 million. Net cash provided by financing activities was $4.2 million for fiscal year 2026, which primarily consisted of proceeds from short-term borrowings of $19.4 million, proceeds from long-term borrowings of $14.0 million, proceeds from related parties borrowings of $3.4 million, and capital contribution from non-controlling shareholders of $0.2 million, partially offset by repayments of short-term borrowings of $24.2 million, repayments of long-term borrowings of $7.8 million, payment of dividend distribution of $0.5 million, and repayment of obligations under finance leases of $0.2 million. Conference Call Information The Company will host an earnings conference call at 8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time) on July 10, 2026. Dial-in details for the conference call are as follows: Please dial in at least 15 minutes before the commencement of the call to ensure timely participation. For those unable to participate, an audio replay of the conference call will be available from approximately one hour after the end of the live call until July 17, 2026. The dial-in for the replay is 1-855-669-9658 within the United States or 1-412-317-0088 internationally. The replay access code is 5582239. A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://www.ystbek.co.jp/irlibrary/. About Tokyo Lifestyle Co., Ltd. Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys, and other products in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), collectible cards and trendy toys (including Pokémon cards, BE@RBRICK and other trendy products) and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company's website at https://www.ystbek.co.jp/irlibrary/. Forward-Looking Statements Certain statements in this press release are 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 and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. 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 annual report on Form 20-F and in its other filings with the U.S. Securities and Exchange Commission. For more information, please contact: Tokyo Lifestyle Co., Ltd. Investor Relations DepartmentEmail: [email protected] Ascent Investor Relations LLCTina XiaoPresidentPhone: +1-646-932-7242Email: [email protected] View original content:https://www.prnewswire.com/news-releases/tokyo-lifestyle-co-ltd-reports-fiscal-year-2026-financial-results-302822525.html

Earnings Call Scheduled at 8:30 am U.S. Eastern Time on July 10, 2026 Tokyo, Japan, July 08, 2026 (GLOBE NEWSWIRE) -- Tokyo Lifestyle Co., Ltd. (“Tokyo Lifestyle” or the “Company”) (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys as well as other products in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia, today announced that it will release its financial results for the fiscal year ended March 31, 2026 before the U.S. market opens on Friday, July 10, 2026. The Company will host an earnings conference call to discuss its financial results at 8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time) on July 10, 2026. To attend this earnings conference call, please use the information below for dial-in access. Please dial in at least 15 minutes before the commencement of the call to ensure timely participation. For those unable to participate, an audio replay of the conference call will be available from approximately one hour after the end of the live call until July 17, 2026. The dial-in for the replay is 1-855-669-9658 within the United States or 1-412-317-0088 internationally. The replay access code is 5582239. A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://www.ystbek.co.jp/irlibrary/. About Tokyo Lifestyle Co., Ltd. Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys, and other products in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), collectible cards and trendy toys (including Pokémon cards, BE@RBRICK and other trendy products) and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company’s website at https://www.ystbek.co.jp/irlibrary/. Forward-Looking Statements Certain statements in this press release are 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 and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. 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 U.S. Securities and Exchange Commission. For more information, please contact: Tokyo Lifestyle Co., Ltd.Investor Relations DepartmentEmail: [email protected] Ascent Investor Relations LLCTina XiaoPresidentPhone: 1-646-932-7242Email: [email protected]

Tokyo, Japan, Dec. 22, 2025 (GLOBE NEWSWIRE) -- Tokyo Lifestyle Co., Ltd. (“Tokyo Lifestyle” or the “Company”) (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys as well as other products in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia, today announced that the interim dividend of JPY1.890 per share for the fiscal year ending March 31, 2026 previously approved by its board of directors was paid on December 19, 2025 (Japan Standard Time) to shareholders of record as of September 30, 2025 (Japan Standard Time), with an American depositary receipt record date of September 30, 2025 (Eastern Time). Any fractions arising in the payment were rounded down. About Tokyo Lifestyle Co., Ltd. Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys, and other products in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), collectible cards and trendy toys (including Pokémon cards, BE@RBRICK and other trendy products) and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company's website at https://www.ystbek.co.jp/irlibrary/. Forward-Looking Statements Certain statements in this press release are 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 and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. 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 filings with the U.S. Securities and Exchange Commission. For more information, please contact: Tokyo Lifestyle Co., Ltd. Investor Relations Department Email: [email protected] Ascent Investor Relations LLC Tina Xiao President Phone: 1-646-932-7242 Email: [email protected]

Revenue Increased by 94.3% YoY; Gross Profit Increased by 29.8% YoY TOKYO, Dec. 19, 2025 /PRNewswire/ -- Tokyo Lifestyle Co., Ltd. ("Tokyo Lifestyle" or the "Company") (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys as well as other products in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia, today announced its unaudited financial results for the first six months of the fiscal year 2026 ended September 30, 2025. Mr. Mei Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented: "The first half of fiscal year 2026 delivered broad-based, double-digit growth across our core business lines, with revenue from (i) franchise stores and wholesale customers and (ii) directly operated physical stores increasing by 102.5% and 47.1%, respectively. This growth was driven by our continuous efforts to expand our product offerings, acquire new retail and wholesale customers, and grow our global network of directly operated stores. "During the period, we continued to enrich our product portfolio with a clear strategic focus on core categories such as beauty, luxury, and electronic products. Supported by our deliberate global expansion strategy and disciplined execution, sales to wholesale and retail customers in key regions accelerated, reflected in a 59.4% increase in total stock keeping units ("SKUs"), as well as revenue growth from additional physical stores and expanded operations in Hong Kong, the United States, and Canada. "As commercial and retail environments continued to recover across our core markets, we amplified this momentum through targeted promotional initiatives and proactive pricing strategies built upon our mature membership system. Onsite promotions, including mall events, gifts with purchase above certain thresholds, and foot-traffic-driven activities, effectively boosted sales in our physical stores, particularly in the beauty product category. "These combined efforts led to a 94.3% year-over-year increase in total revenue and a 29.8% increase in gross profit. We also sustained a stable and healthy overall gross margin of 8.3% across our business lines, underscoring our ability to balance scale with profitability. "Despite the impact of prior-period tax adjustments and foreign exchange fluctuations, we remain optimistic and confident in our strategy and execution capabilities. To optimize resource allocation, we are placing greater emphasis on preparations for future expansion and making necessary investments in site evaluation, talent and customer retention and acquisition. At the same time, we are adopting more flexible collaboration models to strengthen our multi-channel sales network to stay aligned with evolving consumer behavior and industry trends. "While steadily expanding our global physical store network, we are also actively exploring and piloting new technologies and partnership models to accelerate our online sales capabilities, which we believe will be an integral driver of our future growth. Looking ahead, we remain confident in our strategic direction and growth trajectory and expect to deliver sustained, profitable growth and long-term value for our shareholders." Mr. Youichiro Haga, Principal Accounting and Financial Officer of Tokyo Lifestyle, commented: "We are pleased that the Company maintained robust and healthy growth during the first half of fiscal year 2026, supported by solid financial performance metrics. Alongside revenue growth that nearly doubled, our accounts receivable increased by 42.4% while the receivables turnover ratio declined only moderately, reflecting the effectiveness of our disciplined controls and balanced growth strategy. The period's net loss, primarily attributable to tax and foreign exchange impacts, does not reflect our operational performance. In fact, operating profit grew, highlighting ongoing enhancements in our core business fundamentals. We believe that stronger revenue and gross margin performance will lay a solid foundation for a sustained recovery in overall profitability. "At the same time, merchandise inventories decreased by 27.6% despite the 59.4% increase in total SKUs offered, raising our inventory turnover ratio from 13 to 35. This demonstrates a healthy and orderly growth trajectory, too. "We also optimized our liability structure by adjusting the mix of short- and long-term borrowings. The addition of new long-term borrowing not only reduced our financing costs and strengthened cash flow stability, but also signaled increased confidence from lenders and investors in our track record and long-term growth prospects. "Looking ahead, we will continue to enhance our financial strength through disciplined cost management to support our global expansion strategy and deliver increasing long-term value for our shareholders." First Six Months of Fiscal Year 2026 Financial Highlights Revenue was $190.4 million for the six months ended September 30, 2025, increased by 94.3% from $98.0 million for the same period of last year. Gross profit was $15.8 million for the six months ended September 30, 2025, increased by 29.8% from $12.1 million for the same period of last year. Income from operations was $3.6 million for six months ended September 30, 2025, increased by 13.0% from $3.2 million for the same period of last year. Income before provision (benefit) for income tax was $0.7 million for the six months ended September 30, 2025, compared to $0.8 million for the same period of last year. Net loss was $0.9 million for the six months ended September 30, 2025, compared to net income of $1.3 million for the same period of last year. Basic and diluted loss per share was $0.02 for the six months ended September 30, 2025, compared to basic and diluted earnings per share $0.03 for the same period of last year. First Six Months of Fiscal Year 2026 Financial Results Revenue Total revenue was $190.4 million for the six months ended September 30, 2025, increased by 94.3% from $98.0 million for the same period of last year. Revenue from franchise stores and wholesale customers increased by 102.5%, to $176.1 million for the six months ended September 30, 2025, from $86.9 million for the same period of last year. The increase was mainly due to the Company's continuous effort in extending its products offering as its total SKUs increased from approximately 165,200 SKUs during the six months ended September 30, 2024, to approximately 263,400 SKUs during the six months ended September 30, 2025. Especially, revenue from beauty products, luxury products and electronic products increased significantly during the six months ended September 30, 2025 as compared to the same period last year. In addition, the increase was also due to revenue from new wholesale customers because the Company continued to develop its customer base by entering into business relationships with new wholesale customers during the six months ended September 30, 2025. Revenue from directly-operated physical stores increased by 47.1%, to $10.2 million for the six months ended September 30, 2025, from $6.9 million for the same period of last year. The increase was primarily due to the increase revenue generated by the Company's directly-operated physical stores in Hong Kong due to the increased customer visits, which resulted from 1) rebounded number of tourists from mainland China and overseas countries; 2) greater effort spent by its sales team to carry out face-to-face promotion of its products; 3) optimized promotion and price discounts strategies, together with increased SKUs which attracted more customers; and 4) addition of one new physical store. The increase was also attributable to revenue generated from directly-operated physical stores in the United States and Canada due to its continuous business expansion in those countries. The Company currently operates five directly-operated physical stores in the United States and two directly-operated physical stores in Canada during the six months ended September 30, 2025, as compared to four directly-operated physical stores in the United States and one directly-operated physical store in Canada during the six months ended September 30, 2024. Revenue from online stores and services remained relatively stable, and was $4.1 million for the six months ended September 30, 2025 and 2024. Cost of Revenue Cost of revenue increased by 103.4%, to $174.7 million for the six months ended September 30, 2025, from $85.9 million for the same period of last year. Gross Profit and Gross Margin Gross profit increased by 29.8%, to $15.8 million for the six months ended September 30, 2025, from $12.1 million for the same period of last year. Gross margin decreased to 8.3% for the six months ended September 30, 2025, from 12.4% for the same period of last year. The decrease was primarily due to promotional activities at directly-operated stores, as well as a higher proportion of lower-margin luxury and electronic product sales at franchise stores and wholesale customers. Operating Expenses Operating expenses increased by 35.8%, to $12.1 million for the six months ended September 30, 2025, from $8.9 million for the same period of last year. The increase was primarily driven by higher shipping expenses in line with the significant growth in sales from franchise stores and wholesale customers; increased travel expenses related to site inspections for new physical stores; higher payroll, employee benefits, and bonus expenses for talent incentivization; as well as rental and other expenses associated with business expansion. Additional and Delinquent Tax due to Consumption Tax Correction During the six months ended September 30, 2025, the Company recorded approximately $1.8 million in additional consumption tax in accordance with the latest assessment issued by the Tokyo Regional Taxation Bureau. The amount has been fully reflected in the Company's financial statements for the period. Loss from Foreign Currency Exchange Loss from foreign currency exchange decreased to approximately $0.1 million for the six months ended September 30, 2025, compared with $0.8 million for the same period last year. Change in Fair Value of Warrants Liabilities Change in fair value of the warrants liabilities was $(508,128) for the six months ended September 30, 2025, compared to $(1,121,968) for the same period last year. Provision (Benefit) for Income Taxes Provision for income taxes was $1.6 million for the six months ended September 30, 2025, compared to an income tax benefit of $0.6 million for the same period of last year. The increase was mainly due to higher current income tax expenses resulting from increased taxable income generated by the Company's Hong Kong subsidiary. Net Income (Loss) As a result of the foregoing, net loss was $0.9 million for the six months ended September 30, 2025, compared to net income of $1.3 million for the same period of last year. Basic and Diluted Earnings (Loss) per Share Basic and diluted loss per share was $0.02 for the six months ended September 30, 2025, compared to basic and diluted earnings per share of $0.03 for the same period of last year. Financial Condition As of September 30, 2025, the Company had cash of $2.2 million as compared to $4.8 million as of March 31, 2025. As of September 30, 2025, the Company also had approximately $148.6 million of account receivable balance due from third parties. Approximately 26.4% of the September 30, 2025 balance has been subsequently collected, and the majority of the remaining balance is expected to be collected by June 30, 2026. The collection of such receivables made cash available for use in the Company's operations as working capital, if necessary. Net cash used in operating activities was $8.1 million for the six months ended September 30, 2025, mainly derived from the net loss of $0.9 million for the period, and net changes in the Company's operating assets and liabilities, which mainly included the increased accounts receivable of $40.5 million resulted from the increased revenue during the period, partially offset by increased accounts payable of $33.3 million which was due to increased purchases to fulfill the Company's customer orders. Net cash used in investing activities was $0.7 million for the six months ended September 30, 2025, mainly due to investment in life insurance policy of $0.6 million. Net cash provided by financing activities was $6.0 million for the six months ended September 30, 2025, which primarily consisted of proceeds from short-term borrowings of $8.2 million, proceeds from long-term borrowings of $4.8 million, and advances received from related parties of $1.5 million, partially offset by repayments of short-term borrowings of $8.2 million. About Tokyo Lifestyle Co., Ltd. Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys, and other products in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), collectible cards and trendy toys (including Pok￩mon cards, BE@RBRICK and other trendy products) and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company's website at https://www.ystbek.co.jp/irlibrary/. Forward-Looking Statements Certain statements in this press release are 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 and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. 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. In addition, there is uncertainty about the demand for the Company's products, global supply chains, and economic activity in general. 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 U.S. Securities and Exchange Commission. For more information, please contact: Tokyo Lifestyle Co., Ltd. Investor Relations Department Email: [email protected] Ascent Investor Relations LLC Tina Xiao President Phone: +1-646-932-7242 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/tokyo-lifestyle-co-ltd-reports-first-six-months-of-fiscal-year-2026-financial-results-302646968.html

Release Date: July 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tokyo Lifestyle Co Ltd (NASDAQ:TKLF) reported a robust revenue growth of 7.4% for fiscal year 2025, driven by strong performance in directly operated physical stores, franchise stores, and wholesale customers. The company successfully expanded its global market presence by opening five new directly operated stores in the United States, Canada, and Hong Kong. Revenue from directly operated physical stores increased by 14.4%, indicating strong consumer demand and effective store management. Tokyo Lifestyle Co Ltd (NASDAQ:TKLF) expanded its product offerings significantly, increasing total stock keeping units to 201,300 SKUs from 151,700 SKUs in the previous year. The company received a Gold Stevie Award in the Company of the Year - Retail Medium-size category, highlighting its market recognition and innovation efforts. Net income decreased to $6.6 million from $7.5 million in the previous fiscal year, primarily due to losses from foreign currency exchange and changes in the fair value of warrants. Operating expenses increased by 9.1% to $19.2 million, driven by higher payroll, employee benefits, and lease expenses. Income from operations declined to $4.7 million from $5.8 million in the previous year, indicating challenges in maintaining operational profitability. Basic earnings per share decreased to $0.16 from $0.20, reflecting a decline in shareholder returns. The company experienced a net cash outflow from operating activities of $0.6 million, indicating potential liquidity challenges. Warning! GuruFocus has detected 7 Warning Signs with TKLF. Q: Can you elaborate on the factors driving the 7.4% revenue growth for fiscal year 2025? A: The company's representative, Cissy Wang, explained that the revenue growth was primarily driven by the strong performance of directly operated physical stores, franchise stores, and wholesale customers. Additionally, the expansion into key markets like Hong Kong and North America contributed significantly to this growth. Q: How did the company manage to increase its product offerings significantly? A: Cissy Wang noted that the company increased its total stock keeping units (SKUs) from approximately 151,700 to 201,300 during fiscal year 2025. This was achieved by refining product offerings and expanding into new categories such as collectible cards and trendy toys, which have become popular among younger generations. Q: What strategic changes were made in response to market trends and competition in Japan? A: The company optimized local operations by converting some directly operated physical stores into franchise stores. This move was aimed at enhancing cash flow and working capital while also refining product offerings to better align with market demands. Q: Can you provide details on the company's global expansion efforts? A: Tokyo Lifestyle successfully opened five new directly operated stores in the United States, Canada, and Hong Kong. The company is also planning to enter new markets, including Australia, Vietnam, and the Middle East, with a new store in Riyadh, Saudi Arabia, to strengthen its global strategic layout. Q: What were the financial highlights for fiscal year 2025? A: The company reported a total revenue increase of 7.4% to $210.1 million. Revenue from directly operated stores grew by 14.4%, while franchise stores and wholesale customers saw a 9.1% increase. However, net income decreased to $6.6 million from $7.5 million in the previous year, mainly due to foreign currency exchange losses and changes in the fair value of warrants. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.

TOKYO, July 10, 2025 /PRNewswire/ -- Tokyo Lifestyle Co., Ltd. ("Tokyo Lifestyle" or the "Company") (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys as well as other products in Hong Kong, Japan, North America, Thailand and the United Kingdom, today announced its financial results for the fiscal year ended March 31, 2025 ("fiscal year 2025"). Mr. Mei Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented: "We are pleased to present a robust performance report for fiscal year 2025. Our total revenue increased by 7.4%, accompanied by a 2.3% increase in gross profit, reflecting the steady and healthy growth of our overall business. Throughout the year, we accelerated our expansion efforts by both strengthening our existing network and venturing into new territories. We successfully opened five new directly operated stores in the United States, Canada, and Hong Kong, reinforcing our business footprint and enhancing brand recognition in these key markets. Notably, revenue from directly operated physical stores increased by 14.4% during fiscal year 2025. "Simultaneously, we adopted a flexible and targeted approach to support our global expansion by integrating franchise stores and wholesale customers. Specifically, during fiscal year 2025, we added three new franchise stores and 54 new wholesale customers to our sales network. Revenue from franchise stores and wholesale customers increased by 9.1%. As part of this expansion roadmap, we have made selective and targeted adjustments to our online presence, including the closure of certain online stores, in line with our efforts to enhance operational efficiency and focus on higher-performing channels. "Overall, thanks to our ambitious yet well-planned expansion strategy, we remain confident in our business potential and long-term growth prospects. We believe that our profitability will continue to improve steadily as our global footprint becomes more established with the addition of further distribution outposts. "To better support this long-term vision, we continue exploring opportunities in new territories and emerging business sectors. Recently, we have established a new subsidiary in Australia, and planned store openings in Vietnam, Australia, and the Middle East, which we believe to be vibrant markets that are integral to a balanced global strategy. "Concurrently, we have expanded into new product categories, including collectible cards and trendy toys, now offering over 1,300 stock keeping units ("SKUs") within our sales network. Signature products such as Pokémon cards and BE@RBRICK figures not only enrich our product portfolio but also reflect our commitment to stay ahead of evolving consumer trends. We believe these additions will appeal to a broader young consumer base, becoming a promising new revenue stream that injects strong momentum into our growth trajectory. "We believe that our diligent efforts and operational excellence have earned widespread recognition from both the market and investors. With a robust cash reserve and strong financing capability, we are well-positioned to support our ongoing expansion, an achievement that is particularly noteworthy amid the current macroeconomic environment. "Looking ahead, we remain committed to our core strategies, focusing on disciplined execution to drive sustainable growth and deliver greater value to our stakeholders, who continue to be our steadfast supporters and partners in success." Mr. Youichiro Haga, Principal Accounting and Financial Officer of Tokyo Lifestyle, remarked: "We are proud to report the Company's solid financial performance for fiscal year 2025. Despite our continued expansion and globalization efforts, we have maintained a strong financial position to support both current operations and future growth. "As of March 31, 2025, we held $4.8 million in cash, a significant increase from $2.5 million as of March 31, 2024. Additionally, we had approximately $107.3 million in accounts receivable from third parties. Approximately 31.9% of this balance has already been collected as of today, and the majority of the remaining balance is expected to be collected by December 31, 2025. This continued cash inflow further strengthens our financial capability to support our strategic growth initiatives. "Our cost of revenue increased by 8.1%, generally in line with revenue growth, primarily reflecting the ongoing expansion and associated increases in payroll and operational costs in new regions. At the same time, we implemented rigorous cost control measures, notably by reducing online sales-related expenses, such as transaction fees to third-party e-commerce platforms, as well as promotion and advertising costs. "Thanks to these disciplined efforts, we managed to maintain a moderate 9.1% increase in total operating expenses, keeping pace with our expansion. This result highlights the effectiveness of our operational management and prudent cost discipline, supporting our broader strategic blueprint. "For fiscal year 2025, we reported net income of $6.6 million. "Looking forward, we will continue adhering to disciplined cost management and sound investment strategies to further enhance our financial foundation and drive sustainable long-term growth." Fiscal Year 2025 Financial Summary Total revenue was $210.1 million for fiscal year 2025, increased by 7.4% from $195.7 million for the fiscal year ended March 31, 2024 ("fiscal year 2024"). Gross profit was $23.9 million for fiscal year 2025, increased by 2.3% from $23.4 million for fiscal year 2024. Income from operations was $4.7 million for fiscal year 2025, compared to $5.8 million for fiscal year 2024. Net income was $6.6 million for fiscal year 2025. Net cash provided by financing activities increased to $4.0 million for fiscal year 2025, from net cash used in financing activities of $1.8 million for fiscal year 2024. Basic earnings per share was $0.16 for fiscal year 2025. Diluted earnings per share was $0.19 for fiscal year 2025. Fiscal Year 2025 Financial Results Revenue Revenue increased by 7.4%, to $210.1 million for fiscal year 2025, from $195.7 million for fiscal year 2024. The increase in the Company's revenue consisted of increased revenue from directly-operated physical stores and franchise stores and wholesale customers. Revenue denominated in Japanese Yen increased by 13.3%, to ¥31,952.8 million for fiscal year 2025, from ¥28,208.1 million for fiscal year 2024. The increase was mainly due to increased revenue from franchise stores and wholesale customers by 15.1%, to ¥28,215.6 million for fiscal year 2025, from ¥24,524.6 million for fiscal year 2024, as well as increased revenue from directly-operated physical stores by 21.3%, to ¥2,597.6 million for fiscal year 2025, from ¥2,142.0 million for fiscal year 2024. Revenue from directly-operated physical stores increased by 14.4%, to $17.1 million for fiscal year 2025, from $15.0 million for fiscal year 2024. The increase was mainly due to increased revenue generated from the United States and Canada, which resulted from full year operations of the Company's existing directly-operated physical stores in these countries, as well as three newly-opened physical stores in the United States. Meanwhile, revenue generated from Hong Kong also increased since the Company opened one physical store during fiscal year 2025. In addition, the Company offered promotion activities and price discounts to the Company's customers, which attracted more customers to make purchases at the Company's physical stores, and revenue from the Company's existing physical stores in Hong Kong also increased in fiscal year 2025 as compared to the same period last year. The above-mentioned increase was partially offset by decreased revenue from directly-operated physical stores in Japan. Revenue from franchise stores and wholesale customers increased by 9.1%, to $185.5 million for fiscal year 2025, from $170.0 million for fiscal year 2024. The increase was mainly due to the Company's continuous effort in extending the Company's products offering as the Company's total SKUs increased from approximately 151,700 SKUs during the fiscal year 2024, to approximately 201,300 SKUs during fiscal year 2025. In addition, there was increased revenue from the new wholesale customers because the Company continued to develop the Company's customer base by entering into business relationships with new wholesale customers during fiscal year 2025. Cost of Revenue Total cost of revenue increased by 8.1%, to $186.2 million for fiscal year 2025, from $172.3 million for fiscal year 2024. Gross Profit and Gross Margin Gross profit increased by 2.3%, to $23.9 million for fiscal year 2025, from $23.4 million for fiscal year 2024. Gross margin remained relatively stable at 11.4% for fiscal year 2025. Operating Expenses Operating expenses consist of selling and marketing expenses and general and administrative expenses, which primarily include payroll, employee benefit expenses and bonus expenses, shipping expenses, promotion and advertising expenses, and other facility-related costs, such as store rent, utilities, and depreciation. Operating expenses increased by 9.1%, to $19.2 million for fiscal year 2025, from $17.6 million for fiscal year 2024. The increase in operating expenses was primarily attributable to the following factors: Interest Expenses, net Interest expenses, net included interest expenses calculated at interest rate per loan agreements and loan service costs, which were directly incremental to the loan agreements and amortized over the loan periods. Interest expenses, net increased by 7.0%, to $1.7 million for fiscal year 2025, from $1.6 million for fiscal year 2024. The increase was mainly due to an increase in interest expenses of $441,203, which was mainly due to the increased weighted average interest rate for fiscal year 2025, which was partially offset by the decrease in amortized loan service costs in relation to the Company's syndicated loans by $328,525. Other Income, net Other income, net primarily includes tax refund, disposal gain or loss from property and equipment, government subsidy, and other immaterial income and expense items. Other income, net decreased by 52.1%, to $364,294 for fiscal year 2025, from $760,435 for fiscal year 2024. The decrease was mainly due to the decreased gain from disposal of property and equipment as compared to the same period of last year. Gain (loss) from Foreign Currency Exchange Loss from foreign currency exchange was $440,055 for fiscal year 2025, as compared to a gain from foreign currency exchange of $3,065,971 for fiscal year 2024. The loss from foreign currency exchange was mainly due to the fluctuations of foreign exchange rates on the Company accounts receivable that denominated in foreign currencies such as U.S. dollar during the fiscal year 2025. It was also due to the loss from foreign currency exchange by the Company's Hong Kong subsidiary, which was mainly due to the significant fluctuations of foreign exchange rate on its payables that were denominated in Japanese Yen during the fiscal year 2025. Provision (Benefit) for Income Taxes Benefit for income taxes was $1.9 million for fiscal year 2025 as compared to provision for income taxes of $0.5 million for fiscal year 2024. Provision for income taxes decreased by 512.3%. The decrease in provision for income taxes was mainly due to the decreased current income tax expenses resulted from decreased taxable income for fiscal year 2025 and the refund of tax after the ruling from the National Tax Tribunal, dated February 12, 2025. Net Income Net income decreased to $6.6 million for fiscal year 2025, compared to $7.5 million for fiscal year 2024, primarily due to loss from foreign currency exchange and change in fair value of warrants. Basic and Diluted Earnings per Share 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. Financial Condition As of March 31, 2025, the Company had $4.8 million in cash as compared to $2.5 million as of March 31, 2024. As of March 31, 2025, the Company also had approximately $107.3 million of account receivable balance due from third parties. Approximately 31.9% of the March 31, 2025 balance has subsequently been collected, and the majority of the remaining balance is expected to be collected by December 31, 2025. The collection of such receivables made cash available for use in the Company's operations as working capital, if necessary. Net cash used in operating activities was $0.6 million for fiscal year 2025, mainly derived from a net income of $6.6 million for the year, and net changes in the Company operating assets and liabilities, which mainly included increased prepaid expenses and other current assets of $10.8 million, and decreased taxes payable of $8.9 million, which was partially offset by the increased deferred revenue of $8.0 million, increased accounts payable of $2.9 million and a decrease in compensation receivable for consumption tax of $0.7 million as the Company has received payments from the debtors according to the collection plan. The Company entered into a sales agreement with a wholesale customer and received advance payment of $6.9 million during fiscal year 2025. In order to fulfill the sales agreement, the Company made advance payments to the Company's suppliers to secure the products. Therefore, the Company's prepaid expenses and other current assets and deferred revenue increased significantly during fiscal year 2025. Net cash used in investing activities amounted to $964,193 for fiscal year 2025, mainly due to purchases of property and equipment in the aggregate amount of $992,068, partially offset by proceeds from disposal of property and equipment of $39,367. Net cash provided by financing activities was $4.0 million for fiscal year 2025, which primarily consisted of proceeds from short-term borrowings of $5.8 million, partially offset by repayments of short-term borrowings of $1.4 million, repayments of long-term borrowings of $0.2 million and repayment of obligations under finance leases of $0.2 million. Conference Call Information The Company will host an earnings conference call at 8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time) on July 10, 2025. Dial-in details for the conference call are as follows: Please dial in at least 15 minutes before the commencement of the call to ensure timely participation. For those unable to participate, an audio replay of the conference call will be available from approximately one hour after the end of the live call until July 17, 2025. The dial-in for the replay is 1-877-344-7529 within the United States or 1-412-317-0088 internationally. The replay access code is 7762709. A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://www.ystbek.co.jp/irlibrary/. About Tokyo Lifestyle Co., Ltd. Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys, and other products in Hong Kong, Japan, North America, Thailand, and the United Kingdom. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), collectible cards and trendy toys (including Pokémon cards, BE@RBRICK and other trendy products) and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company's website at https://www.ystbek.co.jp/irlibrary/. Forward-Looking Statements Certain statements in this press release are 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 and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. 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 U.S. Securities and Exchange Commission. For more information, please contact: Tokyo Lifestyle Co., Ltd. Investor Relations Department Email: [email protected] Ascent Investor Relations LLC Tina Xiao President Phone: +1-646-932-7242 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/tokyo-lifestyle-co-ltd-reports-fiscal-year-2025-financial-results-302502046.html SOURCE Tokyo Lifestyle Co., Ltd.

Earnings Call Scheduled at 8:30 am U.S. Eastern Time on July 10, 2025 Tokyo, Japan, July 02, 2025 (GLOBE NEWSWIRE) -- Tokyo Lifestyle Co., Ltd. (“Tokyo Lifestyle” or the “Company”) (Nasdaq: TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys as well as other products in Hong Kong, Japan, North America, Thailand and the United Kingdom, today announced that it will release its financial results for the fiscal year ended March 31, 2025 before the U.S. market opens on Thursday, July 10, 2025. The Company will host an earnings conference call to discuss its financial results at 8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time) on July 10, 2025. To attend this earnings conference call, please use the information below for dial-in access. Please dial in at least 15 minutes before the commencement of the call to ensure timely participation. For those unable to participate, an audio replay of the conference call will be available from approximately one hour after the end of the live call until July 17, 2025. The dial-in for the replay is +1-877-344-7529 within the United States or +1-412-317-0088 internationally. The replay access code is 7762709. A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://www.ystbek.co.jp/irlibrary/. About Tokyo Lifestyle Co., Ltd. Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys, and other products in Hong Kong, Japan, North America, Thailand, and the United Kingdom. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company's website at https://www.ystbek.co.jp/irlibrary/. Forward-Looking Statements Certain statements in this press release are 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 and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. 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 U.S. Securities and Exchange Commission. For more information, please contact: Tokyo Lifestyle Co., Ltd. Investor Relations Department Email: [email protected] Ascent Investor Relations LLC Tina Xiao President Phone: 1-646-932-7242 Email: [email protected]