TOKYO, July 10, 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 and the United Kingdom, today announced its financial results for the fiscal year ended March 31, 2025 ("fiscal year 2025").
Mr. Mei Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented: "We are pleased to present a robust performance report for fiscal year 2025. Our total revenue increased by 7.4%, accompanied by a 2.3% increase in gross profit, reflecting the steady and healthy growth of our overall business. Throughout the year, we accelerated our expansion efforts by both strengthening our existing network and venturing into new territories. We successfully opened five new directly operated stores in the United States, Canada, and Hong Kong, reinforcing our business footprint and enhancing brand recognition in these key markets. Notably, revenue from directly operated physical stores increased by 14.4% during fiscal year 2025.
"Simultaneously, we adopted a flexible and targeted approach to support our global expansion by integrating franchise stores and wholesale customers. Specifically, during fiscal year 2025, we added three new franchise stores and 54 new wholesale customers to our sales network. Revenue from franchise stores and wholesale customers increased by 9.1%. As part of this expansion roadmap, we have made selective and targeted adjustments to our online presence, including the closure of certain online stores, in line with our efforts to enhance operational efficiency and focus on higher-performing channels.
"Overall, thanks to our ambitious yet well-planned expansion strategy, we remain confident in our business potential and long-term growth prospects. We believe that our profitability will continue to improve steadily as our global footprint becomes more established with the addition of further distribution outposts.
"To better support this long-term vision, we continue exploring opportunities in new territories and emerging business sectors. Recently, we have established a new subsidiary in Australia, and planned store openings in Vietnam, Australia, and the Middle East, which we believe to be vibrant markets that are integral to a balanced global strategy.
"Concurrently, we have expanded into new product categories, including collectible cards and trendy toys, now offering over 1,300 stock keeping units ("SKUs") within our sales network. Signature products such as Pokémon cards and BE@RBRICK figures not only enrich our product portfolio but also reflect our commitment to stay ahead of evolving consumer trends. We believe these additions will appeal to a broader young consumer base, becoming a promising new revenue stream that injects strong momentum into our growth trajectory.
"We believe that our diligent efforts and operational excellence have earned widespread recognition from both the market and investors. With a robust cash reserve and strong financing capability, we are well-positioned to support our ongoing expansion, an achievement that is particularly noteworthy amid the current macroeconomic environment.
"Looking ahead, we remain committed to our core strategies, focusing on disciplined execution to drive sustainable growth and deliver greater value to our stakeholders, who continue to be our steadfast supporters and partners in success."
Mr. Youichiro Haga, Principal Accounting and Financial Officer of Tokyo Lifestyle, remarked: "We are proud to report the Company's solid financial performance for fiscal year 2025. Despite our continued expansion and globalization efforts, we have maintained a strong financial position to support both current operations and future growth.
"As of March 31, 2025, we held $4.8 million in cash, a significant increase from $2.5 million as of March 31, 2024. Additionally, we had approximately $107.3 million in accounts receivable from third parties. Approximately 31.9% of this balance has already been collected as of today, and the majority of the remaining balance is expected to be collected by December 31, 2025. This continued cash inflow further strengthens our financial capability to support our strategic growth initiatives.
"Our cost of revenue increased by 8.1%, generally in line with revenue growth, primarily reflecting the ongoing expansion and associated increases in payroll and operational costs in new regions. At the same time, we implemented rigorous cost control measures, notably by reducing online sales-related expenses, such as transaction fees to third-party e-commerce platforms, as well as promotion and advertising costs.
"Thanks to these disciplined efforts, we managed to maintain a moderate 9.1% increase in total operating expenses, keeping pace with our expansion. This result highlights the effectiveness of our operational management and prudent cost discipline, supporting our broader strategic blueprint.
"For fiscal year 2025, we reported net income of $6.6 million.
"Looking forward, we will continue adhering to disciplined cost management and sound investment strategies to further enhance our financial foundation and drive sustainable long-term growth."
Fiscal Year 2025 Financial Summary
-- Total revenue was $210.1 million for fiscal year 2025, increased by 7.4% from $195.7 million for the fiscal year ended March 31, 2024 ("fiscal year 2024"). -- Gross profit was $23.9 million for fiscal year 2025, increased by 2.3% from $23.4 million for fiscal year 2024. -- Income from operations was $4.7 million for fiscal year 2025, compared to $5.8 million for fiscal year 2024. -- Net income was $6.6 million for fiscal year 2025. -- Net cash provided by financing activities increased to $4.0 million for fiscal year 2025, from net cash used in financing activities of $1.8 million for fiscal year 2024. -- Basic earnings per share was $0.16 for fiscal year 2025. Diluted earnings per share was $0.19 for fiscal year 2025.
Fiscal Year 2025 Financial Results
Revenue
Revenue increased by 7.4%, to $210.1 million for fiscal year 2025, from $195.7 million for fiscal year 2024. The increase in the Company's revenue consisted of increased revenue from directly-operated physical stores and franchise stores and wholesale customers.
For the Fiscal Years Ended March
31, Variance
--------------------------------- --------------
($ millions) 2025 % 2024 % Amount %
------ ----- ------ ------ ------ ------
Directly-operated
physical stores $ 17.1 8.1% $ 15.0 7.6% $ 2.1 14.4%
Online stores and
services 7.5 3.6% 10.7 5.5% (3.2) (30.0)%
Franchise stores
and wholesale
customers 185.5 88.3% 170.0 86.9% 15.5 9.1%
----- ----- ----- ------ ----- ------
Total Revenue $210.1 100.0% $195.7 100.0% $ 14.4 7.4%
===== ===== ===== ====== ===== ======
Revenue denominated in Japanese Yen increased by 13.3%, to Yen31,952.8 million for fiscal year 2025, from Yen28,208.1 million for fiscal year 2024. The increase was mainly due to increased revenue from franchise stores and wholesale customers by 15.1%, to Yen28,215.6 million for fiscal year 2025, from Yen24,524.6 million for fiscal year 2024, as well as increased revenue from directly-operated physical stores by 21.3%, to Yen2,597.6 million for fiscal year 2025, from Yen2,142.0 million for fiscal year 2024.
For the Fiscal Years Ended March 31, Variance
----------------------------------------------- --------------------
(Yen millions) 2025 % 2024 % Amount %
-------------- ----- ------------- ----- ------------ ------
Directly-operated
physical stores Yen 2,597.6 8.1% Yen 2,142.0 7.6% Yen 455.6 21.3%
Online stores and
services 1,139.6 3.6% 1,541.5 5.5% (401.9) (26.1)%
Franchise stores and
wholesale customers 28,215.6 88.3% 24,524.6 86.9% 3,691.0 15.1%
-------- ----- --- -------- ----- --- ------- ------
Total Revenue Yen 31,952.8 100.0% Yen 28,208.1 100.0% Yen 3,744.7 13.3%
=== ======== ===== === ======== ===== === ======= ======
Revenue from directly-operated physical stores increased by 14.4%, to $17.1 million for fiscal year 2025, from $15.0 million for fiscal year 2024. The increase was mainly due to increased revenue generated from the United States and Canada, which resulted from full year operations of the Company's existing directly-operated physical stores in these countries, as well as three newly-opened physical stores in the United States. Meanwhile, revenue generated from Hong Kong also increased since the Company opened one physical store during fiscal year 2025. In addition, the Company offered promotion activities and price discounts to the Company's customers, which attracted more customers to make purchases at the Company's physical stores, and revenue from the Company's existing physical stores in Hong Kong also increased in fiscal year 2025 as compared to the same period last year. The above-mentioned increase was partially offset by decreased revenue from directly-operated physical stores in Japan.
Revenue from franchise stores and wholesale customers increased by 9.1%, to $185.5 million for fiscal year 2025, from $170.0 million for fiscal year 2024. The increase was mainly due to the Company's continuous effort in extending the Company's products offering as the Company's total SKUs increased from approximately 151,700 SKUs during the fiscal year 2024, to approximately 201,300 SKUs during fiscal year 2025. In addition, there was increased revenue from the new wholesale customers because the Company continued to develop the Company's customer base by entering into business relationships with new wholesale customers during fiscal year 2025.
Cost of Revenue
Total cost of revenue increased by 8.1%, to $186.2 million for fiscal year 2025, from $172.3 million for fiscal year 2024.
Gross Profit and Gross Margin
Gross profit increased by 2.3%, to $23.9 million for fiscal year 2025, from $23.4 million for fiscal year 2024.
Gross margin remained relatively stable at 11.4% for fiscal year 2025.
Operating Expenses
Operating expenses consist of selling and marketing expenses and general and administrative expenses, which primarily include payroll, employee benefit expenses and bonus expenses, shipping expenses, promotion and advertising expenses, and other facility-related costs, such as store rent, utilities, and depreciation.
Operating expenses increased by 9.1%, to $19.2 million for fiscal year 2025, from $17.6 million for fiscal year 2024. The increase in operating expenses was primarily attributable to the following factors:
1. a decrease in net recovery of credit losses by 89.2%, to $(220,368) for
fiscal year 2025, from $(2,043,939) for fiscal year 2024. The decrease in
net recovery of credit losses was mainly due to the collection of
long-term receivables and accounts receivable, causing a large net
recovery of credit losses during fiscal year 2024;
2. an increase in payroll, employee benefit expenses, and bonus expenses by
15.2%, to $6.5 million for fiscal year 2025, from $5.7 million for fiscal
year 2024. The increase was mainly due to increased payroll, employee
benefit expenses, and bonus expenses of $1.3 million in Hong Kong, the
United States and Canada, which was due to the increased headcount caused
by the expansion of the Company's business operation in these regions.
The increase was partially offset by the decreased payroll, employee
benefit expenses, and bonus expenses of $0.4 million in Japan, which was
attributable to the decreased headcount resulting from the implementation
of cost control as well as the transformation of the Company's
directly-operated physical stores in Japan;
3. an increase in lease expenses by 24.0%, to $2.5 million for fiscal year
2025, from $2.0 million for fiscal year 2024. The increase was mainly due
to the full year operations of the Company's existing directly-operated
physical stores in the United States and Canada, as well as the opening
of new physical stores in the United States and Hong Kong in fiscal year
2025;
4. a decrease in transaction commission paid to third-party e-commerce
marketplace operators by 31.9%, to $1.3 million for fiscal year 2025,
from $1.9 million for fiscal year 2024. The Company paid third-party
e-commerce marketplace operators transaction commission ranging from 1.8%
to 3.0% based on the Company's sales amount. The decrease in transaction
commission was in line with the decrease in the Company's online sales;
5. a decrease in promotion and advertising expenses by 77.8%, to $0.2
million for fiscal year 2025, from $0.8 million for fiscal year 2024. The
decrease was mainly due to the Company's effort in cost control as well
as decreased promotion and advertising expenses for the Company's
physical stores as the Company has transformed some of the Company's
physical stores into franchise stores; and
6. a decrease in professional service fees by 8.8%, to $3.2 million for
fiscal year 2025, from $3.5 million for fiscal year 2024. The decrease
was mainly due to the decreased professional fees paid to the Company's
lawyers for services incurred for the consumption tax examination and
issuance of shares.
Interest Expenses, net
Interest expenses, net included interest expenses calculated at interest rate per loan agreements and loan service costs, which were directly incremental to the loan agreements and amortized over the loan periods. Interest expenses, net increased by 7.0%, to $1.7 million for fiscal year 2025, from $1.6 million for fiscal year 2024. The increase was mainly due to an increase in interest expenses of $441,203, which was mainly due to the increased weighted average interest rate for fiscal year 2025, which was partially offset by the decrease in amortized loan service costs in relation to the Company's syndicated loans by $328,525.
Other Income, net
Other income, net primarily includes tax refund, disposal gain or loss from property and equipment, government subsidy, and other immaterial income and expense items. Other income, net decreased by 52.1%, to $364,294 for fiscal year 2025, from $760,435 for fiscal year 2024. The decrease was mainly due to the decreased gain from disposal of property and equipment as compared to the same period of last year.
Gain (loss) from Foreign Currency Exchange
Loss from foreign currency exchange was $440,055 for fiscal year 2025, as compared to a gain from foreign currency exchange of $3,065,971 for fiscal year 2024. The loss from foreign currency exchange was mainly due to the fluctuations of foreign exchange rates on the Company accounts receivable that denominated in foreign currencies such as U.S. dollar during the fiscal year 2025. It was also due to the loss from foreign currency exchange by the Company's Hong Kong subsidiary, which was mainly due to the significant fluctuations of foreign exchange rate on its payables that were denominated in Japanese Yen during the fiscal year 2025.
Provision (Benefit) for Income Taxes
Benefit for income taxes was $1.9 million for fiscal year 2025 as compared to provision for income taxes of $0.5 million for fiscal year 2024. Provision for income taxes decreased by 512.3%. The decrease in provision for income taxes was mainly due to the decreased current income tax expenses resulted from decreased taxable income for fiscal year 2025 and the refund of tax after the ruling from the National Tax Tribunal, dated February 12, 2025.
Net Income
Net income decreased to $6.6 million for fiscal year 2025, compared to $7.5 million for fiscal year 2024, primarily due to loss from foreign currency exchange and change in fair value of warrants.
Basic and Diluted Earnings per Share
Basic earnings per share was $0.16 for fiscal year 2025, compared to $0.20 for fiscal year 2024. Diluted earnings per share was $0.19 for fiscal year 2025, compared to $0.20 for fiscal year 2024.
Financial Condition
As of March 31, 2025, the Company had $4.8 million in cash as compared to $2.5 million as of March 31, 2024. As of March 31, 2025, the Company also had approximately $107.3 million of account receivable balance due from third parties. Approximately 31.9% of the March 31, 2025 balance has subsequently been collected, and the majority of the remaining balance is expected to be collected by December 31, 2025. The collection of such receivables made cash available for use in the Company's operations as working capital, if necessary.
Net cash used in operating activities was $0.6 million for fiscal year 2025, mainly derived from a net income of $6.6 million for the year, and net changes in the Company operating assets and liabilities, which mainly included increased prepaid expenses and other current assets of $10.8 million, and decreased taxes payable of $8.9 million, which was partially offset by the increased deferred revenue of $8.0 million, increased accounts payable of $2.9 million and a decrease in compensation receivable for consumption tax of $0.7 million as the Company has received payments from the debtors according to the collection plan. The Company entered into a sales agreement with a wholesale customer and received advance payment of $6.9 million during fiscal year 2025. In order to fulfill the sales agreement, the Company made advance payments to the Company's suppliers to secure the products. Therefore, the Company's prepaid expenses and other current assets and deferred revenue increased significantly during fiscal year 2025.
Net cash used in investing activities amounted to $964,193 for fiscal year 2025, mainly due to purchases of property and equipment in the aggregate amount of $992,068, partially offset by proceeds from disposal of property and equipment of $39,367.
Net cash provided by financing activities was $4.0 million for fiscal year 2025, which primarily consisted of proceeds from short-term borrowings of $5.8 million, partially offset by repayments of short-term borrowings of $1.4 million, repayments of long-term borrowings of $0.2 million and repayment of obligations under finance leases of $0.2 million.
Conference Call Information
The Company will host an earnings conference call at 8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time) on July 10, 2025. Dial-in details for the conference call are as follows:
Dial-in details for the conference call are as follows: Date: July 10, 2025 Time: 8:30 am U.S. Eastern Time International: 1-412-902-4272 United States Toll Free: 1-888-346-8982 Japan Toll Free: 0066-33-1-33094 Conference ID Tokyo Lifestyle Co., Ltd.
Please dial in at least 15 minutes before the commencement of the call to ensure timely participation.
For those unable to participate, an audio replay of the conference call will be available from approximately one hour after the end of the live call until July 17, 2025. The dial-in for the replay is 1-877-344-7529 within the United States or 1-412-317-0088 internationally. The replay access code is 7762709.
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://www.ystbek.co.jp/irlibrary/.
About Tokyo Lifestyle Co., Ltd.
Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys, and other products in Hong Kong, Japan, North America, Thailand, and the United Kingdom. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), collectible cards and trendy toys (including Pokémon cards, BE@RBRICK and other trendy products) and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company's website at https://www.ystbek.co.jp/irlibrary/.
Forward-Looking Statements
Certain statements in this press release are 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 and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. 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 Company believes that 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 U.S. Securities and Exchange Commission.
For more information, please contact:
Tokyo Lifestyle Co., Ltd.
Investor Relations Department
Email: ir@ystbek.co.jp
Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
TOKYO LIFESTYLE CO., LTD.
CONSOLIDATED BALANCE SHEETS
March 31, March 31,
2025 2024
------------- -------------
ASSETS
CURRENT ASSETS:
Cash $ 4,819,639 $ 2,475,538
Accounts receivable, net 107,305,580 105,359,841
Accounts receivable - related
parties, net 117 25,704
Merchandise inventories, net 4,370,803 4,413,880
Due from related parties 1,208 9,762
Compensation receivable for
consumption tax, current, net 7,178,775 7,133,470
Prepaid expenses and other current
assets, net 13,542,183 2,748,682
------------ ------------
TOTAL CURRENT ASSETS 137,218,305 122,166,877
Property and equipment, net 10,763,020 9,013,827
Operating lease right-of-use assets 6,031,284 3,979,727
Compensation receivable for
consumption tax, non-current, net 2,039,840 2,721,034
Long-term prepaid expenses and other
non-current assets, net 1,777,736 4,115,694
------------ ------------
TOTAL ASSETS $ 157,830,185 $ 141,997,159
============ ============
CURRENT LIABILITIES:
Short-term borrowings $ 57,903,207 $ 53,234,650
Current portion of long-term
borrowings 706,531 1,730,796
Accounts payable 25,057,104 24,392,029
Accounts payable - related parties 2,678,588 299,541
Due to related parties 27,678 42,943
Deferred revenue 8,027,153 55,093
Taxes payable 349,671 9,357,482
Operating lease liabilities, current 2,068,399 1,523,222
Finance lease liabilities, current 138,180 170,553
Warrants liabilities 2,502,718 441,104
Other payables and other current
liabilities 1,998,713 2,167,320
------------ ------------
TOTAL CURRENT LIABILITIES 101,457,942 93,414,733
------------ ------------
Operating lease liabilities,
non-current 4,003,366 2,488,823
Finance lease liabilities,
non-current 119,068 263,571
Long-term borrowings 6,501,772 5,636,960
Other non-current liabilities 1,470,135 1,934,927
Deferred tax liabilities, net 1,263,872 2,215,361
------------ ------------
TOTAL LIABILITIES $ 114,816,155 $ 105,954,375
============ ============
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Ordinary shares, no par
value,100,000,000 shares
authorized; 42,327,806 shares and
42,220,206 shares issued and
outstanding as of March 31, 2025
and 2024, respectively 81,150 16,716,839
Capital reserve 26,946,116 10,262,191
Retained earnings 27,695,268 21,056,780
Accumulated other comprehensive loss (11,708,504) (11,993,026)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 43,014,030 36,042,784
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 157,830,185 $ 141,997,159
============ ============
TOKYO LIFESTYLE CO., LTD. CONSOLIDATED STATEMENTS OF
OPERTAIONS AND COMPREHENSIVE INCOME (LOSS)
For the Years Ended March 31
-----------------------------------------
2025 2024 2023
------------ ------------ -------------
REVENUE
Revenue - third
parties $202,278,304 $189,674,322 $ 168,876,360
Revenue - related
parties 7,840,934 6,006,993 847,986
----------- ----------- ------------
Total revenue 210,119,238 195,681,315 169,724,346
----------- ----------- ------------
COSTS AND
OPERATING
EXPENSES
Merchandise costs 186,201,939 172,306,308 140,293,419
Selling, general
and
administrative
expenses 19,198,116 17,597,125 28,607,088
----------- ----------- ------------
Total costs
and
operating
expenses 205,400,055 189,903,433 168,900,507
----------- ----------- ------------
INCOME FROM
OPERATIONS 4,719,183 5,777,882 823,839
----------- ----------- ------------
OTHER INCOME
(EXPENSE)
Financial
expense
Interest expense,
net (1,723,819) (1,611,141) (2,422,079)
Additional and
delinquent tax
due to
consumption tax
correction 3,905,908 (628,876) (6,622,486)
Gain from
disposal of
equity method
investment - 190,571 -
Gain from
disposal of a
subsidiary - 341,139 -
Other income, net 364,294 760,435 13,145
Gain (loss) from
foreign currency
exchange (440,055) 3,065,971 718,990
Change in fair
value of
warrants
liabilities (2,050,211) 109,173 139,615
Gain (loss) from
equity method
investments (20,049) (69,444) 14,554
----------- ----------- ------------
Total other
income
(expenses),
net 36,068 2,157,828 (8,158,261)
----------- ----------- ------------
INCOME BEFORE
INCOME TAX
PROVISION
(BENEFIT) 4,755,251 7,935,710 (7,334,422)
PROVISION
(BENEFIT) FOR
INCOME TAXES (1,883,237) 456,774 714,400
----------- ----------- ------------
NET INCOME (LOSS) 6,638,488 7,478,936 (8,048,822)
OTHER
COMPREHENSIVE
INCOME (LOSS)
Foreign currency
translation gain
(loss) 284,522 (3,923,683) (4,279,325)
----------- ----------- ------------
TOTAL
COMPREHENSIVE
INCOME (LOSS) $ 6,923,010 $ 3,555,253 (12,328,147)
=========== =========== ============
Earnings (loss)
per ordinary
share
- basic $ 0.16 $ 0.20 $ (0.22)
=========== =========== ============
- diluted $ 0.19 $ 0.20 $ (0.22)
=========== =========== ============
Weighted average
shares
- basic 42,242,610 37,264,162 36,250,054
=========== =========== ============
- diluted 44,878,189 37,264,162 36,250,054
=========== =========== ============
TOKYO LIFESTYLE CO., LTD.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Accumulated
Other Total
Comprehensiv Shareholders
Ordinary Shares Capital Retained e '
--------------------------
Shares Amount Reserve Earnings Loss Equity
----------- ------------- ------------ ------------ ------------- ------------
Balance,
March 31,
2022 36,250,054 $ 14,694,327 $ 11,921,065 $ 21,626,666 $ (3,790,018) $ 44,452,040
Business
combinations
under common
control - - (2,842,173) - - (2,842,173)
Capital
contribution
received by
Malaysia
subsidiary - - 23 - - 23
Net loss for the
year - - - (8,048,822) - (8,048,822)
Foreign
currency
translation
loss - - - - (4,279,325) (4,279,325)
---------- ------------ ----------- ----------- ------------ -----------
Balance,
March 31,
2023 36,250,054 $ 14,694,327 $ 9,078,915 $ 13,577,844 $ (8,069,343) $ 29,281,743
Issuance of
ordinary
shares 5,970,152 2,022,512 1,724,770 - - 3,747,282
Issuance of
investors'
warrants - - (541,494) - - (541,494)
Net income for
the year - - - 7,478,936 - 7,478,936
Foreign
currency
translation
loss - - - - (3,923,683) (3,923,683)
---------- ------------ ----------- ----------- ------------ -----------
Balance,
March 31,
2024 42,220,206 $ 16,716,839 $ 10,262,191 $ 21,056,780 $(11,993,026) $ 36,042,784
Issuance of
ordinary
shares for
warrants
redemption 107,600 14,741 33,495 - - 48,236
Transfer of
capital to
capital
reserve - (16,650,430) 16,650,430 - - -
Net income for
the period - - - 6,638,488 - 6,638,488
Foreign
currency
translation
gain - - - - 284,522 284,522
---------- ------------ ----------- ----------- ------------ -----------
Balance,
March 31,
2025 42,327,806 $ 81,150 $ 26,946,116 $ 27,695,268 $(11,708,504) $ 43,014,030
========== ============ =========== =========== ============ ===========
TOKYO LIFESTYLE CO., LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended March 31
-------------------------------------------
2025 2024 2023
------------- ------------- -------------
Cash flows
from operating
activities:
Net Income
(loss) $ 6,638,488 $ 7,478,936 $ (8,048,822)
Adjustments to
reconcile net
income to net
cash
provided by
(used in)
operating
activities:
Depreciation
and
amortization 952,126 1,232,611 1,226,496
Loss (gain)
from disposal
of property
and equipment (178,152) (712,685) 329,580
Impairment of
property and
equipment 143,621 - -
Loss (gain)
from
unrealized
foreign
currency
translation (13,986) (412,728) 282,131
Provision for
(reversal of)
credit losses (220,368) (2,043,939) 3,471,953
Addition
(reversal) of
merchandise
inventories
written
down 61,935 (68,361) 150,382
Amortization of
operating
lease
right-of-use
assets 2,049,635 1,711,978 1,784,754
Deferred tax
provision
(benefit) (955,082) (1,778,277) 4,849,771
Change in fair
value of
warrants
liabilities 2,050,211 (109,173) (139,615)
Investment loss
(income) from
equity method
investment 20,049 69,444 (14,554)
Gain from
disposal of
equity method
investment - (190,571) -
Accrued
interest
expense 100,416 - -
Changes in
operating
assets and
liabilities:
Accounts
receivable (1,073,737) (24,747,655) (53,824,026)
Accounts
receivable -
related
parties 25,698 277,005 (323,212)
Merchandise
inventories (13,596) 2,355,034 21,285,866
Compensation
receivable for
consumption
tax 696,224 11,284,665 (23,212,327)
Prepaid
expenses and
other current
assets (10,772,468) 949,043 5,597,781
Long term
prepaid
expenses and
other
non-current
assets 501,659 315,809 2,183,108
Accounts
payable 567,502 13,816,414 5,280,797
Accounts
payable -
related
parties 2,372,722 299,591 (119,081)
Deferred
revenue 8,006,135 35,027 49,715
Taxes payable (8,943,973) (6,977,961) 17,268,372
Other payables
and other
current
liabilities (281,729) 1,078,396 (1,590,907)
Operating lease
liabilities (2,040,884) (1,711,398) (1,807,376)
Other
non-current
liabilities (291,185) (239,250) (419,200)
------------ ------------ ------------
Net cash (used
in) provided
by operating
activities (598,739) 1,911,955 (25,738,414)
------------ ------------ ------------
Cash flows
from investing
activities:
Purchase of
property and
equipment (992,068) (929,308) (934,960)
Proceeds from
disposal of
property and
equipment 39,367 3,104,387 2,961
Investment in
an equity
method
investment (20,049) - -
Proceeds from
disposal of
equity method
investment - 276,800 -
Proceeds from
disposal of a
subsidiary - 34,600 -
Disposal of a
subsidiary,
net of cash - (171,788) -
Collection of
amount due
from related
parties 8,557 399,223 188,728
------------ ------------ ------------
Net cash (used
in) provided
by investing
activities (964,193) 2,713,914 (743,271)
------------ ------------ ------------
Cash flows
from financing
activities:
Capital
contribution - - 23
Proceeds from
issuance of
ordinary
shares for
warrants
redemption 29,482 - -
Proceeds from
issuance of
ordinary
shares, net of
issuance
costs - 3,747,282 -
Cash
consideration
paid for
business
combination
under common
control - - (2,842,173)
Proceeds from
short-term
borrowings 5,781,612 1,384,000 78,831,300
Repayments of
short-term
borrowings (1,446,786) (2,076,000) (55,515,000)
Proceeds from
long-term
borrowings - - 2,160,161
Repayments of
long-term
borrowings (204,024) (4,186,712) (9,798,554)
Payments made
to related
parties (15,346) (228,966) 104,482
Repayment of
obligations
under finance
leases (177,320) (420,910) (194,421)
------------ ------------ ------------
Net cash
provided by
(used in)
financing
activities 3,967,618 (1,781,306) 12,745,818
------------ ------------ ------------
Effect of
exchange rate
fluctuation on
cash (60,585) (2,135,466) (2,763,692)
------------ ------------ ------------
Net increase
(decrease) in
cash 2,344,101 709,097 (16,499,559)
Cash at
beginning of
year 2,475,538 1,766,441 18,266,000
------------ ------------ ------------
Cash at end of
year $ 4,819,639 $ 2,475,538 $ 1,766,441
============ ============ ============
Supplemental
cash flow
information
Cash paid for
income taxes $ 4,207,552 $ 880,308 $ 433,899
============ ============ ============
Cash paid for
interest $ 1,072,273 $ 798,353 $ 1,108,863
============ ============ ============
Supplemental
non-cash
operating
activities
Purchase of
property and
financed under
long-term
payment $ - $ - $ 831,746
============ ============ ============
Purchase of
property and
equipment
financed under
finance
leases $ - $ - $ 210,666
============ ============ ============
Right of use
assets
obtained in
exchange for
operating
lease
liabilities $ - $ 3,118,676 $ 542,231
============ ============ ============
View original content:https://www.prnewswire.com/news-releases/tokyo-lifestyle-co-ltd-reports-fiscal-year-2025-financial-results-302502046.html
SOURCE Tokyo Lifestyle Co., Ltd.
(END) Dow Jones Newswires
July 10, 2025 06:00 ET (10:00 GMT)
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