Tokyo Lifestyle H2 2025 Earnings Report

Tokyo Lifestyle EPS Results

• Actual EPS: $0.19
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Tokyo Lifestyle Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Tokyo Lifestyle Announcement Details

• Quarter: H2 2025
• Date: 7/10/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, July 10, 2025
• Conference Call Time: 8:30AM ET

Tokyo Lifestyle (NASDAQ:TKLF), Inc. (NASDAQ: TKLF) is a global e-commerce company specializing in the distribution of authentic Japanese lifestyle products. The company operates a portfolio of online retail platforms that offer a diverse range of goods including electronics, beauty and skincare items, gourmet foods, collectible merchandise, and home décor. By forging partnerships with established manufacturers and artisans in Japan, Tokyo Lifestyle delivers curated selections that cater to both niche enthusiasts and mainstream consumers seeking high-quality Japanese imports.

At the core of Tokyo Lifestyle’s business model is its proprietary e-commerce infrastructure, which includes real-time inventory management, localized customer support, and a streamlined checkout process. The company leverages strategic warehousing and fulfillment centers in North America, Europe, and Asia to minimize delivery times and optimize logistics costs. In addition to one-time purchases, Tokyo Lifestyle offers subscription-based “Japan Experience” boxes that provide customers with a rotating assortment of seasonal products and exclusive items sourced directly from regional suppliers in Japan.

Founded in the early 2010s, Tokyo Lifestyle has expanded from a small New York–based importer to a publicly traded international retailer. The company has grown its footprint through targeted marketing campaigns, social media engagement, and collaborations with Japanese cultural organizations. Over the years, Tokyo Lifestyle has broadened its catalog to include limited-edition releases, event tie-ins with anime and gaming conventions, and bespoke merchandise drops, establishing itself as a trusted bridge between Japanese creators and global audiences.

Leadership at Tokyo Lifestyle is headed by CEO Kodai Kanazawa, whose background in digital retail and cross-border trade has driven the company’s emphasis on technological innovation and customer experience. Under his direction, Tokyo Lifestyle continues to invest in data analytics, mobile app enhancements, and virtual showroom experiences designed to deepen consumer engagement. The company’s management team maintains offices in Tokyo, New York, and London, reflecting its commitment to serving diverse markets and capitalizing on evolving consumer trends worldwide.

Tokyo Lifestyle H2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: The company achieved a 7.4% increase in total revenue to $210.1 million, with directly operated store sales up 14.4% year-over-year.
• Positive Sentiment: Global expansion accelerated with five new directly operated stores opened in the US, Canada, and Hong Kong, and plans underway for new outlets in Vietnam, Australia, and Riyadh.
• Negative Sentiment: Net income fell to $6.6 million from $7.5 million and basic EPS declined to $0.16 due to foreign currency exchange losses and changes in warrant fair value.
• Negative Sentiment: Operating income dropped to $4.7 million from $5.8 million, while operating expenses rose 9.1% driven by higher payroll, benefits, and lease costs.
• Neutral Sentiment: Gross margin held steady at 11.4% as the company expanded its product range by 32% to over 201,300 SKUs, with the collectible card and trading toy segment generating $11.4 million.

Presentation

[Operator]

Good day, ladies and gentlemen. Thank you for standing by, and welcome to Tokyo Lifestyle's fiscal year twenty twenty five earnings conference call. During today's presentation, all parties will be in a listen only mode. This conference is being recorded today, Thursday, 07/10/2025. If you have any objections, you may disconnect at this time.

[Operator]

Joining us today from Tokyo Lifestyle is the company's representative, Lucy Wong. Before we continue, I would like to remind you that some information discussed on this call will contain forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended and as defined in The U. S. Private Securities Litigation Reform Act of 1995. These forward looking statements involve known and unknown risks and uncertainties.

[Operator]

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 expectations expressed in these forward looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the company's registration statement and in its other filings with the SEC. With that, I would now turn the call over to Ms. Christie Wong, the company's representative. Please go ahead.

[Sissy Wong, Company Representative at Tokyo Lifestyle]

Thank you, operator, and everyone for joining Tokyo Lifestyle's fiscal year twenty twenty five earnings conference call today. On our call today, I will give an overall of our performance for the fiscal year ended 03/31/2025, followed by a detailed financial review of the company's results. In fiscal year twenty twenty five, we are pleased to report steady progress in our business growth and expansion in key markets like Hong Kong and North America. Our total revenue saw a robust growth of 7.4% for fiscal year twenty twenty five, mainly driven by the strong performance of our directly operated physical stores, franchise stores and wholesale customers. During fiscal year twenty twenty five, we continue to adjust our business layout to enhance resource allocation, improve operational efficiency and drive profitability.

[Sissy Wong, Company Representative at Tokyo Lifestyle]

In response to market trends and increase the competition in Japan, we optimized local operation by converting some directly operated physical stores into franchise store to enhance cash flow and working capital. We're also refining our product offerings. Consequently, our total stock keeping unit increased to 201,300 SKUs during fiscal year twenty twenty five. From approximately 151,700 SKUs during fiscal year twenty twenty four, underscoring a significant growth in our product offering. In addition, revenue from new wholesale customers increased as the company continues to expand its customer base by establishing business relationships with new wholesale customers during fiscal year twenty twenty five.

[Sissy Wong, Company Representative at Tokyo Lifestyle]

Meanwhile, our global market expansion progressed steadily. Notably, we successfully opened five new directly operated store in The United States, Canada, and Hong Kong, reinforcing our business footprint and enhancing brand recognition in these key markets. Overall, our revenue from directly operated physical stores increased by 14.4%. The expansion of our franchise and wholesale business lines also demonstrated a steadily growth. We added three franchise stores and 54 new wholesale customers, with revenue increasing by 9.1%, accounting for 88.3% of our total revenue during this period.

[Sissy Wong, Company Representative at Tokyo Lifestyle]

We also remain steadfast in exploring new opportunities in emerging sectors such as collectible card and the training toys, shipping products like Pokemon cards and Bear Break, which lack the latest fashion and consumption trends among younger generations. Our offering in these new categories have grown to over 1,300 SKUs. And for the fiscal year 2025, our revenue from collectible cars and training toys totaled $11,400,000, representing 5.4% of our total revenue. During the past year, we were honored to receive a Goldsmith Award in a company of the year retail medium sized category at the twenty first Annual International Business Awards in September 2024, underscoring market recognition of our long term efforts and innovations. Looking ahead, we remain committed to driving sustainable growth and exploring new opportunities while strengthening loyalty among our existing customers.

[Sissy Wong, Company Representative at Tokyo Lifestyle]

In the Asia and Ocean markets, we are deepening collaboration with existing franchises and actively seeking new partnerships to drive in further development. Recently, we established new subsidiaries in Australia and plan to open new stores in Vietnam and Australia, laying strong foundation for our business expansions in this new territory. We also plan to enter the Middle East market by preparing a new store in Riyadh, Saudi Arabia. We believe these efforts will strengthen our global strategic layout and establish a more balanced market presence. We remain focused on our strategic priorities, strengthening our current market footprint, closely monitoring market trends and customer preferences, improving operational efficiency and profitability, optimizing our distribution network and commercial outlets, and exploring new partnership opportunities.

[Sissy Wong, Company Representative at Tokyo Lifestyle]

We are confident that these efforts will contribute to a brighter future and deliver greater value for our company and shareholders. Now I'd like to share our financial results highlights of fiscal year twenty twenty five. Our total revenue increased by 7.4% from $195,700,000 to $210,100,000 for fiscal year twenty twenty five. During the period, our directly operated store contributed $17,100,000 in revenue, representing a year over year growth of 14.4%. Revenue from franchise stores and wholesale customers grew by 9.1% to $185,500,000 This increase was mainly driven by our continued efforts in expanding product offerings.

[Sissy Wong, Company Representative at Tokyo Lifestyle]

In addition, revenue from new wholesale customers increased as we continued to develop our customer base by establishing business relationships with new wholesale clients during fiscal year twenty twenty five. Income from operations was $4,700,000 for fiscal year twenty twenty five compared to $5,800,000 for fiscal year twenty twenty four. Gross profit was $23,900,000 for fiscal year twenty twenty five, representing an increase of 2.3% from $23,400,000 in the period year. Gross margin remains relatively stable at 11.4%. Operating expenses increased by 9.1% to $19,200,000, primarily a trade attribute to increase in payroll, employee benefits, and bonus expenses associated with business expansion as well as higher lease expenses for directly operated physical stores.

[Sissy Wong, Company Representative at Tokyo Lifestyle]

Net income was $6,600,000 compared to $7,500,000 for fiscal year twenty twenty four, primarily due to lose from foreign currency exchange and the change in fair value of warrants. Basic earnings per share were $0.16 for fiscal year twenty twenty five compared to $0.2 for fiscal year 2024. Diluted earnings per share was $0.19 for fiscal year 2025 compared to $0.2 for fiscal year 2024. As of 03/31/2025, the company had cash of $4,800,000 and accounts receivable balance of $107,300,000 due from third parties. Approximately 31.9% of this balance has been subsequently collected.

[Sissy Wong, Company Representative at Tokyo Lifestyle]

The collection of such receivable has made cash available for use in our operational and working capital if necessary. As of 03/31/2025, the company merchandise inventory balance amounted to approximately $4,400,000, which the company believes can be filled quickly based on analysis of the current trends in demand for our products. For fiscal year twenty twenty five, net cash used in operating activities was $600,000. Net cash used in investing activities was $1,000,000, and net cash provided by finance financing activities was $41,000,000. Looking ahead, we remain committed to enhancing financial performance through robust business strategies, disciplined cost management, and strategic investments.

[Sissy Wong, Company Representative at Tokyo Lifestyle]

We will remain focused on identifying new revenue streams and are confident that this effort will drive sustainable long term value for our shareholders. Thank you so much for joining this conference call. If you have any questions, please contact us through email at ir y s t b k dot co dot j p or reach our IR counsel, Ascent Investor Relations at investors@ascentir.com. Management will respond to your questions as soon as possible. We appreciate your interest and support in Tokyo Lifestyle and look forward to speaking with you again next time.

[Operator]

Thank you again for attending Tokyo Lifestyle's fiscal year twenty twenty five earnings conference call. This concludes our call today, and we thank you all for listening in. Goodbye.

Participants

Executives

• Sissy Wong, Company Representative