Listen and subscribe to The Big Idea with Elizabeth Gore on Apple Podcasts, Spotify, or wherever you find your favorite podcast. Can your favorite pastime become a thriving business? This CEO made it happen. This week on The Big Idea with Elizabeth Gore, DripShop CEO and co-founder Javaughn Lawrence joins the show to answer the question: How do I monetize my hobbies? Lawrence turned his childhood hobby—collecting and trading Pokémon and other collectible cards—into a live-shopping e-commerce platform. He an ...

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].