Tokyo Lifestyle (TKLF) H2 2025 earnings summary

Executive summary

• Achieved 7.4% revenue growth to $210.1 million for fiscal year 2025, driven by strong performance in physical stores, franchises, and wholesale channels.

• Net income was $6.6 million, down from $7.5 million, mainly due to foreign exchange losses and changes in warrant values.

• Opened five new directly operated stores in the US, Canada, and Hong Kong; added three franchise stores and 54 new wholesale customers.

• Expanded product offerings, increasing SKUs from 151,700 to over 201,300 year-over-year, including collectible cards and trendy toys.

• Established a new subsidiary in Australia and planned store openings in Vietnam, Australia, and the Middle East.

Financial highlights

• Total revenue rose to $210.1 million from $195.7 million, a 7.4% increase year-over-year.

• Gross profit increased 2.3% to $23.9 million; gross margin stable at 11.4%.

• Net income was $6.6 million, down from $7.5 million, mainly due to FX losses and warrant fair value changes.

• Basic EPS was $0.16, diluted EPS $0.19, both down from prior year.

• Cash balance at year-end was $4.8 million; accounts receivable $107.3 million, with 31.9% collected post-period.

Outlook and guidance

• Plans to expand in Asia, Oceania, and the Middle East, including new stores in Vietnam, Australia, and Riyadh.

• Focus on sustainable growth, operational efficiency, and new revenue streams.

• Continued investment in new product categories and emerging business sectors.