Tokyo Lifestyle (TKLF) Registration Filing summary

Company overview and business model

• Headquartered in Tokyo, operates as a retailer and wholesaler of Japanese beauty, health, sundry, electronic, luxury, and food products, offering over 151,000 SKUs across categories.

• Sells through directly-operated stores, online platforms, franchise stores, and wholesale channels, with recent expansion into the U.S., Canada, and Hong Kong.

• Maintains long-term relationships with over 173 suppliers, including major Japanese brands.

Financial performance and metrics

• Revenue grew from $224.8M (FY2021) to $234.8M (FY2022), then declined to $169.7M (FY2023) due to COVID-19, before rebounding to $195.7M (FY2024).

• Net income fell from $4.95M (FY2021) to $3.92M (FY2022), turned to a net loss of $8.05M (FY2023), then recovered to $6.44M (FY2024).

• As of the prospectus date, holds $53.2M in short-term and $7.2M in long-term borrowings.

• Sales to China accounted for 61.2% of FY2024 revenue, with plans to diversify geographically.

Use of proceeds and capital allocation

• May receive up to $4M from the exercise of January 2024 Warrants, to be used for working capital and franchise store purchasing.

• Will not receive proceeds from the resale of ADSs by selling shareholders.