PART I [Item 3. Key Information](index=5&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section details significant business and market-related risks, including competition, debt reliance, and ADS volatility [Risks Related to Our Business](index=5&type=section&id=D.%20Risk%20Factors%20-%20Risks%20Related%20to%20Our%20Business) The company faces intense market competition, reliance on short-term debt, supply chain vulnerabilities, and high dependency on the China market - The company operates in highly competitive and fragmented markets in Hong Kong, Japan, China, Thailand, Canada, the U.K., and the U.S., competing with a wide range of retailers from offline and online specialty stores to pharmacies and supermarkets[24](index=24&type=chunk) - The COVID-19 pandemic had a significant adverse impact, causing total revenue to decrease by **27.7%** and net income to fall by **305.1%** (from a profit to a loss) in the fiscal year ended March 31, 2023[33](index=33&type=chunk) Short-Term Borrowings Outstanding | Fiscal Year End | Short-Term Borrowings | | :--- | :--- | | March 31, 2025 | $57.9 million | | March 31, 2024 | $53.2 million | | March 31, 2023 | $60.6 million | Supplier Concentration (FY2023-FY2025) | Fiscal Year Ended | Number of Key Suppliers | % of Total Purchases | | :--- | :--- | :--- | | March 31, 2025 | 2 | 28.2% and 18.5% | | March 31, 2024 | 2 | 22.5% and 21.2% | | March 31, 2023 | 3 | 18.2%, 16.3%, and 12.0% | Revenue Concentration from China Market | Fiscal Year Ended | % of Revenue from China | | :--- | :--- | | March 31, 2025 | 60.7% | | March 31, 2024 | 61.2% | | March 31, 2023 | 51.1% | [Risks Relating to Our Ordinary Shares and the Trading Market](index=21&type=section&id=D.%20Risk%20Factors%20-%20Risks%20Relating%20to%20Our%20Ordinary%20Shares%20and%20the%20Trading%20Market) Key risks include significant ADS price volatility, material weaknesses in internal controls, and potential PFIC classification - The closing price of the ADSs has been **highly volatile**, ranging from **$2.0 to $295.2 per ADS** on an adjusted basis since the IPO on January 13, 2022[104](index=104&type=chunk) - **Material weaknesses in internal control** over financial reporting have been identified, including a lack of internal staff with appropriate U.S. GAAP and SEC reporting knowledge, and deficiencies in IT general controls[107](index=107&type=chunk)[108](index=108&type=chunk) - The company received a notice of non-compliance with Nasdaq's minimum bid price rule in December 2023 but **regained compliance by December 2, 2024**[131](index=131&type=chunk) - The company is a **"controlled company"** as the representative director, Mr. Mei Kanayama, owns a majority of the voting power and it follows Japanese home country governance practices, exempting it from certain Nasdaq requirements[113](index=113&type=chunk)[114](index=114&type=chunk)[130](index=130&type=chunk) - There is a risk the company could be classified as a **Passive Foreign Investment Company (PFIC)** for its 2026 taxable year or later, which would result in adverse U.S. federal income tax consequences for U.S. taxpayers holding its shares[135](index=135&type=chunk)[139](index=139&type=chunk) [Item 4. Information on the Company](index=29&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section provides an overview of the company's history, business model, product offerings, and strategic plans [History and Development of the Company](index=29&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) The company completed its IPO in 2022 and has since expanded through acquisitions, changed its name, and adjusted its ADS ratio - The company closed its initial public offering (IPO) on January 13, 2022, raising net proceeds of approximately **$21.4 million**[143](index=143&type=chunk) - Acquired 100% of Tokyo Lifestyle Limited on July 27, 2022, for approximately **US$2.84 million** to expand into Southeast Asia and advance live streaming e-commerce[144](index=144&type=chunk) - On October 31, 2024, the company's name was changed from Yoshitsu Co., Ltd to **Tokyo Lifestyle Co., Ltd**[149](index=149&type=chunk) - On November 15, 2024, the company changed its ADS to Ordinary Share ratio from 1:1 to **1:10**, effectively conducting a 1-for-10 reverse split on the ADSs[148](index=148&type=chunk) [Business Overview](index=31&type=section&id=B.%20Business%20Overview) The company retails and wholesales Japanese products through a multi-channel network, with a focus on international expansion and private label development - The company offers a wide range of products, including approximately **64,800 SKUs** of beauty products, **39,000 SKUs** of health products, and **73,800 SKUs** of sundry products[156](index=156&type=chunk) - The company's growth strategy includes opening **10 additional directly-operated stores in the U.S.** and adding **20 new franchise stores** across various international markets over the next three years[169](index=169&type=chunk) - The company is developing its own private label products, which currently include items like facial masks, toning lotion, and reusable shopping bags, with plans to expand the range[171](index=171&type=chunk) Revenue by Distribution Channel (FY2023-FY2025) | Distribution Channel | FY2025 % | FY2024 % | FY2023 % | | :--- | :--- | :--- | :--- | | Directly-operated physical stores | 8.1% | 7.6% | 6.8% | | Online stores | 3.6% | 5.5% | 12.2% | | Franchise stores and wholesale customers | 88.3% | 86.9% | 81.0% | Revenue by Product Category (FY2023-FY2025) | Product Category | FY2025 % | FY2024 % | FY2023 % | | :--- | :--- | :--- | :--- | | Beauty products | 38.7% | 25.6% | 75.9% | | Health products | 3.3% | 2.5% | 11.0% | | Sundry products | 9.7% | 3.1% | 6.5% | | Luxury products | 16.8% | 46.1% | 0.0% | | Electronic products | 22.8% | 17.9% | 0.0% | | Collectible cards and trendy toys | 5.4% | 0.0% | 0.0% | | Other products | 3.3% | 4.8% | 6.6% | [Item 5. Operating and Financial Review and Prospects](index=56&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section analyzes financial performance, showing revenue growth but decreased net income in FY2025, alongside the company's liquidity and capital resources [Operating Results](index=58&type=section&id=A.%20Operating%20Results) FY2025 revenue grew 7.4% to $210.1 million, but net income fell 11.2% to $6.6 million due to higher operating expenses - In FY2025, revenue from directly-operated physical stores grew **14.4%**, while online store revenue decreased by **30.0%** due to the closure of underperforming online stores[287](index=287&type=chunk)[288](index=288&type=chunk) - The significant decrease in operating expenses in FY2024 (down **38.5% YoY**) was a key driver of the return to profitability, primarily due to a **$5.5 million decrease** in allowance for credit losses and a **$4.1 million reduction** in shipping expenses[326](index=326&type=chunk)[327](index=327&type=chunk) Financial Performance Summary (FY2025 vs. FY2024) | Metric | FY 2025 | FY 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $210,119,238 | $195,681,315 | 7.4% | | Gross Profit | $23,917,299 | $23,375,007 | 2.3% | | Gross Margin | 11.4% | 11.9% | (0.5 p.p.) | | Income from Operations | $4,719,183 | $5,777,882 | (18.3)% | | Net Income | $6,638,488 | $7,478,936 | (11.2)% | Financial Performance Summary (FY2024 vs. FY2023) | Metric | FY 2024 | FY 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $195,681,315 | $169,724,346 | 15.3% | | Gross Profit | $23,375,007 | $29,430,927 | (20.6)% | | Gross Margin | 11.9% | 17.3% | (5.4 p.p.) | | Income from Operations | $5,777,882 | $823,839 | 601.3% | | Net Income (Loss) | $7,478,936 | $(8,048,822) | 192.9% | [Liquidity and Capital Resources](index=71&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash and receivables but relies heavily on short-term and long-term debt financing - The company's short-term syndicated loans, totaling approximately **$52.2 million** as of March 31, 2025, have been extended to a new maturity date of March 31, 2026[341](index=341&type=chunk)[342](index=342&type=chunk) Key Balance Sheet and Liquidity Metrics (as of March 31, 2025) | Metric | Amount | | :--- | :--- | | Cash | $4.8 million | | Accounts Receivable | $107.3 million | | Working Capital | $35.8 million | | Short-Term Borrowings | $57.9 million | | Long-Term Borrowings | $7.2 million | Cash Flow Summary (FY2023-FY2025) | Cash Flow Activity | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Net cash from (used in) operating activities | $(598,739) | $1,911,955 | $(25,738,414) | | Net cash from (used in) investing activities | $(964,193) | $2,713,914 | $(743,271) | | Net cash from (used in) financing activities | $3,967,618 | $(1,781,306) | $12,745,818 | [Item 6. Directors, Senior Management and Employees](index=80&type=section&id=ITEM%206.%20DIRECTORS,%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the company's leadership, compensation, and board structure, highlighting its status as a "controlled company" - The board of directors consists of four members: Mei Kanayama (Representative Director), Youichiro Haga (Director and Corporate Officer), Yoji Takenaka (Independent Director), and Tetsuya Sato (Independent Director)[378](index=378&type=chunk)[391](index=391&type=chunk) - For the fiscal year ended March 31, 2025, the aggregate compensation paid to all directors and senior management was approximately **$404,868**[388](index=388&type=chunk) - The company operates as a company with a corporate auditor under the Japanese Companies Act, which is an alternative to having board committees like an audit committee[392](index=392&type=chunk) Major Share Ownership | Shareholder | Beneficial Ownership (%) | | :--- | :--- | | Mei Kanayama | 58.05% | | Tokushin G.K. | 32.07% | | Grand Elec-Tech Limited | 6.31% | [Item 7. Major Shareholders and Related Party Transactions](index=85&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) This section outlines major shareholders and significant transactions with related parties, primarily controlled by the director's family - On June 30, 2023, the company sold its 100% interest in subsidiary Kaika International and its 40% interest in equity investment Palpito to DinnerBank, a related party[416](index=416&type=chunk) - Mr. Mei Kanayama, the representative director, provides **personal guarantees** for certain company loans[417](index=417&type=chunk) Sales to Related Parties (FY2023-FY2025) | Fiscal Year Ended | Total Sales to Related Parties | | :--- | :--- | | March 31, 2025 | $7,840,934 | | March 31, 2024 | $6,006,993 | | March 31, 2023 | $847,986 | Purchases from Related Parties (FY2023-FY2025) | Fiscal Year Ended | Total Purchases from Related Parties | | :--- | :--- | | March 31, 2025 | $10,494,954 | | March 31, 2024 | $445,980 | | March 31, 2023 | $202,516 | [Item 8. Financial Information](index=88&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) This section covers the company's dividend policy, noting no dividends have been paid, and outlines the legal framework for future distributions - The company has **not declared or paid any cash dividends** on its Ordinary Shares since its inception[419](index=419&type=chunk) - Under the Japanese Companies Act, dividend distributions are made from the company's surplus and must generally be authorized by a resolution at a general meeting of shareholders[423](index=423&type=chunk) [Item 9. The Offer and Listing](index=91&type=section&id=ITEM%209.%20THE%20OFFER%20AND%20LISTING) This section confirms the company's American Depositary Shares are listed and traded on the Nasdaq Stock Market under the symbol "TKLF" - The company's American Depositary Shares (ADSs) have been listed on the Nasdaq Stock Market under the trading symbol **"TKLF"** since January 18, 2022[430](index=430&type=chunk)[431](index=431&type=chunk) [Item 10. Additional Information](index=92&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) This section provides supplementary details on corporate governance, exchange controls, and key tax implications for shareholders - The company's purpose includes a wide range of activities such as international business consulting, import/export, drugstore operations, logistics, and e-commerce[438](index=438&type=chunk) - Japan's Foreign Exchange and Foreign Trade Act (FEFTA) governs the acquisition and holding of shares by non-residents and foreign investors[443](index=443&type=chunk) - Dividends paid to non-resident holders are generally subject to a Japanese withholding tax rate of **20.42%**, which can be reduced under applicable tax treaties[451](index=451&type=chunk)[453](index=453&type=chunk) - For U.S. federal income tax purposes, U.S. Holders of ADSs are generally treated as owners of the underlying Ordinary Shares[449](index=449&type=chunk)[465](index=465&type=chunk) [Item 11. Quantitative and Qualitative Disclosures About Market Risk](index=100&type=section&id=ITEM%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is primarily exposed to foreign exchange risk, credit risk from receivables, and interest rate risk on its borrowings - The company's primary market risk is **foreign exchange risk** due to its functional currency (JPY) differing from its reporting currency (USD)[488](index=488&type=chunk) - Credit risk exists with cash deposits and accounts receivable, with **$3.3 million in cash** held in Japanese financial institutions as of March 31, 2025[491](index=491&type=chunk) - The company has **not used derivative financial instruments** to hedge against interest rate or foreign currency risks[490](index=490&type=chunk)[493](index=493&type=chunk) [Item 12. Description of Securities Other Than Equity Securities](index=101&type=section&id=ITEM%2012.%20DESCRIPTION%20OF%20SECURITIES%20OTHER%20THAN%20EQUITY%20SECURITIES) This section details the terms of the company's American Depositary Shares (ADSs), including the ADS-to-share ratio and associated fees - Each American Depositary Share (ADS) represents **10 Ordinary Shares** of the company, with The Bank of New York Mellon serving as the depositary[496](index=496&type=chunk) Selected ADS Holder Fees | Fee | For | | :--- | :--- | | Up to $5.00 per 100 ADSs | Issuance or cancellation of ADSs | | Up to $0.05 per ADS | Any cash distribution | | Up to $0.05 per ADS per year | Depositary services | PART II [Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds](index=104&type=section&id=ITEM%2014.%20MATERIAL%20MODIFICATIONS%20TO%20THE%20RIGHTS%20OF%20SECURITY%20HOLDERS%20AND%20USE%20OF%20PROCEEDS) This section confirms that net proceeds of $3.4 million from a 2024 offering have been fully used for expansion and operations - In January 2024, the company completed a registered direct offering, raising net proceeds of **$3,412,000**[507](index=507&type=chunk)[508](index=508&type=chunk) - The net proceeds from the offering were **fully utilized** for expanding overseas markets and for daily operations[508](index=508&type=chunk) [Item 15. Controls and Procedures](index=105&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure and internal controls were not effective as of March 31, 2025, due to material weaknesses - Management concluded that **disclosure controls and procedures were not effective** as of March 31, 2025[512](index=512&type=chunk) - **Material weaknesses in internal control** over financial reporting were identified, including insufficient accounting staff with U.S. GAAP/SEC knowledge and a lack of proper IT controls[512](index=512&type=chunk)[514](index=514&type=chunk) - Remediation plans include hiring more qualified accounting personnel, implementing regular U.S. GAAP training, and improving IT environment and management[513](index=513&type=chunk) [Item 16. Corporate Governance and Other Disclosures](index=105&type=section&id=ITEM%2016.%20CORPORATE%20GOVERNANCE%20AND%20OTHER%20DISCLOSURES) This section covers governance practices, accountant fees, and the company's cybersecurity risk management framework - As a foreign private issuer, the company follows Japanese corporate governance practices, which differ from Nasdaq requirements regarding board independence and audit committees[524](index=524&type=chunk)[525](index=525&type=chunk)[535](index=535&type=chunk) - The company has implemented a cybersecurity risk management framework, with oversight from the board of directors, and **no material cybersecurity incidents** were detected in the year ended March 31, 2025[531](index=531&type=chunk)[532](index=532&type=chunk)[533](index=533&type=chunk) Principal Accountant Fees | Fiscal Year Ended | Audit Fees | | :--- | :--- | | March 31, 2025 | $379,634 | | March 31, 2024 | $627,249 | | March 31, 2023 | $599,150 | PART III [Item 18. Financial Statements](index=109&type=section&id=ITEM%2018.%20FINANCIAL%20STATEMENTS) This section presents the company's audited consolidated financial statements and accompanying notes for the last three fiscal years [Consolidated Financial Statements](index=117&type=section&id=Consolidated%20Financial%20Statements) The financial statements show total assets of $157.8 million and net income of $6.6 million for the fiscal year ended March 31, 2025 Consolidated Balance Sheet Summary | (in USD) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$157,830,185** | **$141,997,159** | | Total Current Assets | $137,218,305 | $122,166,877 | | **Total Liabilities** | **$114,816,155** | **$105,954,375** | | Total Current Liabilities | $101,457,942 | $93,414,733 | | **Total Shareholders' Equity** | **$43,014,030** | **$36,042,784** | Consolidated Statement of Operations Summary | (in USD) | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Total Revenue | $210,119,238 | $195,681,315 | $169,724,346 | | Income from Operations | $4,719,183 | $5,777,882 | $823,839 | | Net Income (Loss) | $6,638,488 | $7,478,936 | $(8,048,822) | | Basic EPS | $0.16 | $0.20 | $(0.22) | | Diluted EPS | $0.19 | $0.20 | $(0.22) | [Notes to Consolidated Financial Statements](index=122&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies, revenue disaggregation, and significant financial events like tax rulings and debt guarantees - The company adopted the **Current Expected Credit Loss (CECL)** methodology under ASU 2016-13 on April 1, 2023, which did not have a material impact on the financial statements[588](index=588&type=chunk) - The company's syndicated loans of approximately **$52.2 million** have a maturity date of March 2026 and are guaranteed by the representative director, Mr. Kanayama[703](index=703&type=chunk)[708](index=708&type=chunk) - A tax examination by the Tokyo Regional Taxation Bureau was annulled by the National Tax Tribunal on February 12, 2025, leading to a **recovery for the company**[677](index=677&type=chunk)[740](index=740&type=chunk) - On November 15, 2024, the company executed a **reverse split of its ADSs** by changing the ratio from one ADS per ordinary share to one ADS per 10 ordinary shares, with all per-ADS data retroactively restated[755](index=755&type=chunk) Revenue Disaggregation by Geography (FY2025) | Geographic Area | Revenue (USD) | % of Total | | :--- | :--- | :--- | | Japan domestic market | $62,190,446 | 29.6% | | Hong Kong market | $104,685,311 | 49.8% | | The United States market | $19,515,109 | 9.3% | | Other overseas markets | $23,728,372 | 11.3% |

Financial Data and Key Metrics Changes - Total revenue increased by 7.4% from $195.7 million to $210.1 million for fiscal year 2025 [10] - Net income decreased to $6.6 million from $7.5 million in fiscal year 2024, primarily due to foreign currency exchange losses [12] - Basic earnings per share were $0.16 for fiscal year 2025 compared to $0.20 for fiscal year 2024 [12] Business Line Data and Key Metrics Changes - Revenue from directly operated stores grew by 14.4%, contributing $17.1 million [10] - Revenue from franchise stores and wholesale customers increased by 9.1% to $185.5 million, accounting for 88.3% of total revenue [6][10] - The total stock keeping unit (SKU) increased significantly to 201,300 from approximately 151,700 in the previous fiscal year [5] Market Data and Key Metrics Changes - The company opened five new directly operated stores in the United States, Canada, and Hong Kong, enhancing brand recognition [6] - Revenue from collectible cards and training toys totaled $11.4 million, representing 5.4% of total revenue [7] Company Strategy and Development Direction - The company is focused on optimizing local operations by converting some directly operated stores into franchise stores to enhance cash flow [5] - Plans to expand into new markets include opening stores in Vietnam and Australia, and entering the Middle East market with a new store in Riyadh, Saudi Arabia [9] - The company aims to strengthen its market footprint while closely monitoring trends and improving operational efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in driving sustainable growth and exploring new opportunities while strengthening customer loyalty [7] - The company remains committed to enhancing financial performance through robust business strategies and disciplined cost management [13] Other Important Information - The company received a Goldsmith Award in the retail medium-sized category at the 21st Annual International Business Awards in September 2024, highlighting market recognition [7] - As of March 31, 2025, the company had cash of $4.8 million and accounts receivable of $107.3 million, with approximately 31.9% collected [12][13] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Data and Key Metrics Changes - Total revenue increased by 7.4% from $195.7 million to $210.1 million for fiscal year 2025 [10] - Net income decreased to $6.6 million from $7.5 million in fiscal year 2024, primarily due to foreign currency exchange losses [12] - Basic earnings per share were $0.16 for fiscal year 2025 compared to $0.20 for fiscal year 2024 [12] Business Line Data and Key Metrics Changes - Revenue from directly operated stores grew by 14.4%, contributing $17.1 million [10] - Revenue from franchise stores and wholesale customers increased by 9.1% to $185.5 million, accounting for 88.3% of total revenue [6][10] - The total stock keeping unit (SKU) increased to 201,300 from approximately 151,700, indicating significant growth in product offerings [5] Market Data and Key Metrics Changes - The company opened five new directly operated stores in the United States, Canada, and Hong Kong, enhancing brand recognition [6] - Revenue from collectible cards and training toys totaled $11.4 million, representing 5.4% of total revenue [7] Company Strategy and Development Direction - The company is focused on optimizing local operations by converting some directly operated stores into franchise stores to enhance cash flow [5] - Plans to enter new markets include opening stores in Vietnam and Australia, and establishing a presence in the Middle East [9] - The company aims to strengthen its market footprint while exploring new partnership opportunities and improving operational efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in driving sustainable growth and exploring new opportunities while enhancing customer loyalty [8] - The company remains committed to enhancing financial performance through robust business strategies and disciplined cost management [13] Other Important Information - The company received a Goldsmith Award in the retail medium-sized category at the 21st Annual International Business Awards, highlighting market recognition [7] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Core Viewpoint - Tokyo Lifestyle Co., Ltd. reported a solid financial performance for fiscal year 2025, with total revenue increasing by 7.4% to $210.1 million, driven by growth in directly operated stores and franchise operations [2][13][16]. Financial Performance - Total revenue for fiscal year 2025 was $210.1 million, up from $195.7 million in fiscal year 2024, marking a 7.4% increase [13][16]. - Gross profit increased by 2.3% to $23.9 million, with a stable gross margin of 11.4% [20][16]. - Net income decreased to $6.6 million from $7.5 million in fiscal year 2024, primarily due to foreign currency exchange losses [27][16]. - Basic earnings per share were $0.16, while diluted earnings per share were $0.19 for fiscal year 2025 [28][16]. Revenue Breakdown - Revenue from directly operated physical stores rose by 14.4% to $17.1 million, attributed to new store openings and promotional activities [14][17]. - Revenue from franchise stores and wholesale customers increased by 9.1% to $185.5 million, supported by an expanded product offering and new customer relationships [18][16]. - Online store revenue decreased by 30.0% to $7.5 million, reflecting strategic adjustments to enhance operational efficiency [14][16]. Expansion Strategy - The company opened five new directly operated stores in the U.S., Canada, and Hong Kong, enhancing its market presence [2][3]. - Three new franchise stores and 54 new wholesale customers were added, contributing to a 9.1% increase in revenue from these channels [3][16]. - A new subsidiary was established in Australia, with planned store openings in Vietnam, Australia, and the Middle East [5][16]. Cost Management - Total cost of revenue increased by 8.1% to $186.2 million, in line with revenue growth [19][16]. - Operating expenses rose by 9.1% to $19.2 million, driven by increased payroll and lease expenses due to expansion efforts [22][16]. - The company implemented cost control measures, resulting in a significant reduction in online sales-related expenses and promotional costs [11][16]. Financial Condition - As of March 31, 2025, the company held $4.8 million in cash, up from $2.5 million the previous year, and had approximately $107.3 million in accounts receivable [9][29]. - The collection of accounts receivable is expected to strengthen the company's financial position, with 31.9% already collected as of the reporting date [30][29].

Core Viewpoint - Tokyo Lifestyle Co., Ltd. is set to release its financial results for the fiscal year ended March 31, 2025, on July 10, 2025, before the U.S. market opens, followed by an earnings conference call at 8:30 am U.S. Eastern Time [1] Company Overview - Tokyo Lifestyle Co., Ltd. is a retailer and wholesaler of various products including Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, and trendy toys, operating in markets such as Hong Kong, Japan, North America, Thailand, and the United Kingdom [5] - The company offers a wide range of beauty products (cosmetics, skincare, fragrance, body care), health products (over-the-counter drugs, nutritional supplements, medical supplies), sundry products (home goods), and other products (food and alcoholic beverages) [5] - Products are sold through directly-operated physical stores, online stores, and to franchise and wholesale customers [5]

Core Insights - Tokyo Lifestyle Co., Ltd. has secured a revolving loan facility of up to HK$100 million to support its business expansion, reflecting strong lender confidence in the company's strategy and execution capabilities [1][2][3] Financial Details - The loan facility has a term of 60 months and an annual interest rate of 4.68%, with potential for size increase based on future business needs [2] Strategic Implications - The company views this financing as a significant milestone that enhances its financial standing, operational efficiency, and ability to implement strategic initiatives, thereby positioning it for sustained growth and increased brand influence [3] Company Overview - Tokyo Lifestyle Co., Ltd. is a retailer and wholesaler of various products including beauty, health, luxury, electronic, and collectible items across multiple regions including Hong Kong, Japan, North America, Thailand, and the United Kingdom [4]

Core Insights - Tokyo Lifestyle Co., Ltd. is expanding its international presence by opening a new store in Sydney, Australia, under its proprietary brand in November 2025 [1][2][3] Group 1: Company Expansion - The new store will be operated by TOKYO LIFESTYLE PTY LTD, a subsidiary that is 51% owned by the company's wholly-owned Hong Kong subsidiary [2] - The store will be located in Sydney's Chinatown, an area known for its cultural heritage and high foot traffic from locals and tourists, which is expected to enhance brand visibility and market penetration in Australia [2][3] Group 2: Strategic Vision - The establishment of the store in Australia is part of the company's global expansion strategy, aiming to celebrate cultural fusion while promoting its Japanese lifestyle and premium products [3] - The company emphasizes its commitment to exceptional service and premium offerings, which are central to its brand identity [3] Group 3: Company Overview - Tokyo Lifestyle Co., Ltd. is headquartered in Tokyo and specializes in a variety of products, including beauty, health, luxury, electronic, and collectible items, across multiple regions including Hong Kong, Japan, North America, Thailand, and the United Kingdom [4] - The company operates through various channels, including directly-operated physical stores, online platforms, and wholesale distribution [4]

Core Insights - Tokyo Lifestyle Co., Ltd. plans to open a new flagship store in Kowloon, Hong Kong, to expand its retail presence and enhance brand visibility in the market [1][3] - The new store is scheduled to open in September 2025 and will feature products inspired by Japanese lifestyle and culture [2] - The location is in AIRSIDE, a significant mixed-use development in the Kai Tak area, which is expected to have substantial commercial potential [2][3] Company Overview - Tokyo Lifestyle Co., Ltd. is a retailer and wholesaler of various products, including beauty, health, luxury, electronic, and trending products across multiple regions, including Hong Kong, Japan, North America, Thailand, and the United Kingdom [4] - The company offers a wide range of beauty products, health products, sundry products, and other items, selling through directly-operated stores, online platforms, and franchise and wholesale channels [4]

Company Overview - Tokyo Lifestyle Co., Ltd. is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, and other products across multiple regions including Hong Kong, Japan, North America, Thailand, and the United Kingdom [4] Expansion Plans - The company plans to open a new directly-operated store in Ho Chi Minh City, Vietnam, in July 2025, marking its entry into the Vietnamese market [1][3] - The store will be located at 374 Nguyen Thi Minh Khai Street, which is expected to benefit from high foot traffic and strong brand visibility [2] Market Strategy - The company aims to appeal to the younger generation of Vietnamese consumers and establish a strong brand image in Vietnam, leveraging its product offerings rooted in Japanese lifestyle and culture [3] - The strategic expansion in Southeast Asia is anticipated to inject fresh growth momentum into the company's global operations [3]

Company Overview - Tokyo Lifestyle Co., Ltd. is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, and other products in Hong Kong, Japan, North America, and the United Kingdom [3] - The company offers a variety of products including cosmetics, skincare, fragrance, body care products, over-the-counter drugs, nutritional supplements, medical supplies, home goods, food, and alcoholic beverages [3] - Products are sold through directly-operated physical stores, online stores, and to franchise stores and wholesale customers [3] Event Participation - Tokyo Lifestyle's management team will participate in one-on-one meetings with investors at the D. Boral Capital Inaugural Global Conference on May 14, 2025, at the Plaza Hotel in New York City [1] - The conference will feature approximately seventy-five presenting companies and hundreds of institutional investors, providing a platform for engagement and interaction in a high-energy environment [2]