Tokyo Lifestyle Co., Ltd.’s Hong Kong Subsidiary Terminates Revolving Financing Facility Forward of Schedule

Strong Operating Performance and Improved Liquidity Support Debt Reduction and Lower Financing Costs

Tokyo, Japan, Sept. 17, 2026 (GLOBE NEWSWIRE) — Tokyo Lifestyle Co., Ltd. (“Tokyo Lifestyle” or the “Company”) (Nasdaq: TKLF), a retailer and wholesaler of Japanese health and beauty merchandise, sundry merchandise, luxurious merchandise, digital merchandise, collectible playing cards, stylish toys in addition to different merchandise in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia, as we speak introduced that its wholly-owned Hong Kong subsidiary, Tokyo Lifestyle Limited, had agreed to completely prepay all excellent quantities underneath an present revolving financing facility beforehand introduced by the Company on June 30, 2025 (the “Facility”) by September 30, 2026. The Facility, which supplied for a most credit score quantity of HK$100 million (roughly US$12.8 million) and had not been totally utilized, was terminated on June 24, 2026.

Pursuant to a mortgage termination settlement (the “Agreement”) entered into with the creditor on June 24, 2026, Tokyo Lifestyle Limited agreed to repay in full, by September 30, 2026, all excellent principal, accrued curiosity, charges, and different quantities payable underneath the unique revolving mortgage facility letter dated June 27, 2025. Upon the effectiveness of the Agreement on June 24, 2026, the Facility, which has a five-year time period, was terminated instantly, whereas the Company’s obligation to repay the excellent quantities remained due by September 30, 2026.

Prior to this choice, Tokyo Lifestyle Limited had not totally utilized the out there credit score facility. After evaluating its total working wants, money stream place, and year-to-date accounts receivable collections, Tokyo Lifestyle Limited decided that it doesn’t count on to require additional funding underneath the Facility. Tokyo Lifestyle Limited believes that it now has a stronger liquidity place and improved money stream era and has elected to proactively repay all excellent quantities underneath the Facility, with the target of decreasing debt, reducing financing prices, bettering capital effectivity, and additional optimizing its capital construction. Despite the voluntary termination, Tokyo Lifestyle Limited retains the flexibleness to use for brand new financing services or renew or modify related preparations sooner or later primarily based on its precise financing wants.

The Company believes that the choice displays the Company’s bettering working efficiency and liquidity place. According to its monetary statements launched on July 10, 2026, for the fiscal yr ended March 31, 2026, Tokyo Lifestyle reported income of US$373.2 million, representing a 77.6% year-over-year improve, whereas gross revenue elevated 17.5% year-over-year to US$28.1 million.

The Company believes that for the reason that starting of the fiscal yr ending March 31, 2027, its Hong Kong subsidiary, Tokyo Lifestyle Limited, has maintained steady working efficiency and money stream era, supported by the continued restoration of the native retail market. In addition, improved timing of sure accounts receivable collections has additional strengthened the Company’s liquidity place and supplied better monetary flexibility. Against this backdrop, the Company believes that terminating the Facility and decreasing its excellent financing obligations generally will permit it to function with a extra environment friendly capital construction whereas retaining better flexibility to allocate sources towards its core enterprise and strategic development initiatives.

Mr. Mei Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented: “We have maintained strong business momentum since the beginning of this year, with key operating indicators continuing to improve. At the same time, our liquidity position has strengthened, providing us with greater financial flexibility to support our ongoing operations and planned business expansion.

“Therefore, we have decided to fully repay the outstanding obligations under the Facility and terminate the existing financing arrangement. This decision reflects our confidence in our operating performance and financial position, as well as our commitment to proactively managing our capital structure. By reducing our financing obligations and associated interest and financing costs, we expect to improve capital efficiency and create greater flexibility to allocate resources toward product development, operational optimization, and market expansion. We believe these efforts will further strengthen our financial foundation and support sustainable growth and long-term value creation for our shareholders.”

About Tokyo Lifestyle Co., Ltd.

Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (previously often known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese health and beauty merchandise, sundry merchandise, luxurious merchandise, digital merchandise, collectible playing cards, stylish toys, and different merchandise in Hong Kong, Japan, North America, Thailand, Vietnam, the United Kingdom and Australia. The Company presents varied magnificence merchandise (together with cosmetics, skincare, perfume, and physique care merchandise), well being merchandise (together with over-the-counter medicine, dietary dietary supplements, and medical provides and units), sundry merchandise (together with residence items), collectible playing cards and classy toys (together with Pokémon playing cards, BE@RBRICK and different stylish merchandise) and different merchandise (together with meals and alcoholic drinks). The Company at present sells its merchandise via directly-operated bodily shops, via on-line shops, and to franchise shops and wholesale prospects. For extra info, please go to the Company’s web site at https://www.ystbek.co.jp/irlibrary/.

Forward-Looking Statements

Certain statements on this press launch are forward-looking statements, throughout the which means of Section 21E of the Securities Exchange Act of 1934, as amended, and as outlined within the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements contain identified and unknown dangers and uncertainties and are primarily based on present expectations and projections about future occasions and monetary traits that the Company believes might have an effect on its monetary situation, outcomes of operations, enterprise technique, and monetary wants. Investors can establish these forward-looking statements by phrases or phrases reminiscent of “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or different related expressions. The Company undertakes no obligation to replace forward-looking statements to replicate subsequent occurring occasions or circumstances, or modifications in its expectations, besides as could also be required by regulation. Although the Company believes that the expectations expressed in these forward-looking statements are cheap, it can not guarantee you that such expectations will develop into right, and the Company cautions buyers that precise outcomes might differ materially from the anticipated outcomes and encourages buyers to evaluate different elements that will have an effect on its future leads to the Company’s registration assertion and in its different filings with the U.S. Securities and Exchange Commission.

For extra info, 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