Tokyo Lifestyle (TKLF) investor relations material

Executive summary

• Revenue grew 94.3% year-over-year to $190.4 million for the six months ended September 30, 2025, driven by strong expansion in franchise/wholesale and directly operated stores.

• Gross profit increased 29.8% year-over-year to $15.8 million, with gross margin at 8.3% due to higher sales of lower-margin luxury/electronic products and promotional activities.

• Net loss was $0.9 million, compared to net income of $1.3 million in the prior year, mainly due to tax adjustments and foreign exchange impacts.

• Operating profit improved, reflecting ongoing enhancements in core business fundamentals.

Financial highlights

• Revenue: $190.4 million (+94.3% YoY); gross profit: $15.8 million (+29.8% YoY); gross margin: 8.3% (down from 12.4%).

• Income from operations: $3.6 million (+13.0% YoY).

• Net loss: $0.9 million (vs. net income of $1.3 million prior year).

• Basic and diluted loss per share: $0.02 (vs. EPS of $0.03 prior year).

• Cash at period end: $2.2 million (down from $4.8 million at March 31, 2025).

• Accounts receivable: $148.6 million (+42.4% from March 31, 2025); 26.4% collected post-period.

• Merchandise inventories: $5.3 million (down 27.6% YoY), with inventory turnover ratio rising from 13 to 35.

Outlook and guidance

• Management expects continued profitable growth, with a focus on global expansion, new technologies, and multi-channel sales.

• Emphasis on disciplined cost management and resource allocation to support long-term value creation.