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 ...

Core Insights - Tokyo Lifestyle Co., Ltd. has entered into an investment and operational target agreement to expand its store network in Hong Kong and Australia [1][2][3] Investment Details - The agreement involves an initial investment of HKD 10 million (approximately US$1.28 million) by a private investor to fund the expansion and operations of Tokyo Lifestyle's physical retail stores [3][4] - The investment will be allocated to store leasing, fit-out, inventory procurement, staffing, marketing, and other related operating expenses [3] Operational Targets - The agreement sets a target to open no fewer than 15 directly operated stores across Hong Kong and Australia within two years [5] - If the target cannot be met due to force majeure or major business adjustments, the parties will negotiate an appropriate extension or modification [5] Strategic Vision - The collaboration aims to strengthen Tokyo Lifestyle's presence in core markets and accelerate future expansion, particularly in Europe and the United States [6] - The partnership is expected to enhance market penetration and brand influence while laying a foundation for future revenue growth [6] Company Overview - Tokyo Lifestyle Co., Ltd. is a retailer and wholesaler of various products, including beauty and health products, luxury items, electronic products, and trendy toys, operating in multiple regions including Hong Kong, Japan, North America, Thailand, Vietnam, and the United Kingdom [7]

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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].