Tokyo Lifestyle posts 78% income progress however weaker revenue | TKLF SEC Submitting

Exhibit 99.1

 

Tokyo
Lifestyle Co., Ltd. Reports Fiscal Year 2026 Financial Results

 

Tokyo,
Japan, July 10, 2026 /PRNewswire/ — 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, fashionable toys in addition to different merchandise in Hong Kong, Japan, North America, Thailand,
Vietnam, the United Kingdom and Australia, in the present day introduced its monetary outcomes for the fiscal yr ended March 31, 2026 (“fiscal
yr 2026”).

 

Mr. Mei
Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented: “Fiscal yr 2026 was a yr of sturdy execution throughout our
enterprise, leading to strong income progress pushed by continued enlargement of our directly-operated shops, franchise community, and wholesale
operations, all of which achieved double-digit progress. We consider that these outcomes show the effectiveness of our technique to
diversify our product portfolio, broaden our buyer base, and speed up our international market enlargement. Tokyo Lifestyle is evolving past
a conventional retailer right into a diversified client way of life platform with complementary retail, franchise, wholesale, and luxurious items
companies, pursuing a number of drivers for sustainable long-term progress.

 

“As
a part of this transformation, we continued to advance our asset-light progress technique by accelerating the enlargement of our franchise and
wholesale companies, significantly within the high-end merchandise phase. While these companies typically carry decrease gross margins than
our directly-operated retail operations, they require considerably much less capital funding and working bills, enabling quicker,
extra environment friendly scaling. Accordingly, the adjustments in our income combine ought to be seen as a deliberate optimization of our enterprise mannequin
designed to boost long-term returns, somewhat than a mirrored image of weaker working efficiency.

 

“A
key spotlight was the excellent efficiency of our luxurious items enterprise, which shortly emerged as a significant progress driver. At the
identical time, continued enlargement of our wholesale buyer base and broader distribution community strengthened market attain, diversified
our income streams, and enhanced the resilience of our enterprise.

 

“Our
complete property elevated by 48% throughout fiscal yr 2026 whereas we remained worthwhile for the third consecutive yr, reflecting our continued
enterprise enlargement and rising market presence.

 

“We
additionally continued strengthening our worldwide platform by increasing our worldwide presence. During the yr, we opened new shops
in Hong Kong and Australia, expanded strategic partnerships, and continued investing in native expertise and performance-based incentive
packages. These initiatives additional strengthen our organizational capabilities to assist continued international enlargement effectively.

 

“In
addition, we continued optimizing our omnichannel retail community by changing chosen underperforming directly-operated shops into
franchise areas operated by skilled native companions.

 

“Looking
forward, we stay centered on executing our long-term progress technique by means of continued buyer acquisition, broader international model recognition,
an more and more diversified product portfolio, and deeper buyer engagement.”

 

Mr.
Youichiro Haga, Principal Accounting and Financial Officer of Tokyo Lifestyle, remarked: “We are happy to report a 77.6% year-over-year
enhance in income, and extra importantly, this sturdy progress was achieved together with disciplined value administration. Although we continued
investing in advertising and marketing, model improvement, and international enlargement initiatives, working bills grew at a considerably slower tempo than
income — 29.6% versus 77.6% — decreasing working bills as a proportion of income from 9.1% to six.7%. This demonstrates the scalability
of our working mannequin and our skill to generate rising working leverage because the enterprise expands.

 

 

“Specifically,
through the fiscal yr, income from our directly-operated bodily shops elevated by 15.7%, demonstrating the resilience of our core
retail enterprise, whereas franchise and wholesale income grew by 86.9%, pushed primarily by greater than 320% progress in our luxurious items enterprise
and the addition of 68 new wholesale clients. This balanced progress throughout each retail and asset-light channels underscores the rising
diversification and scalability of our enterprise.

 

“Accounts
receivable elevated by 74.1% yr over yr, broadly consistent with our income progress. This primarily displays the fast enlargement of
our wholesale and franchise companies, along with the continued progress of our worldwide distribution community. Although greater
accounts receivable and elevated working capital necessities briefly affected money balances and working money movement, we view these
adjustments as a pure consequence of the continued fast progress somewhat than a deterioration in earnings high quality or monetary fundamentals.

 

“Beyond
income progress, we delivered significant enhancements in profitability. Gross revenue from directly-operated bodily shops and on-line
enterprise every elevated by over 20%, supported by improved gross margins ensuing from a extra optimized product combine and disciplined
stock administration. Gross revenue from franchise and wholesale enterprise additionally elevated by 15.5%. While this phase carries a relatively
decrease gross margin, it requires considerably decrease working prices and capital funding, additional enhancing the effectivity, scalability,
and returns of our general enterprise mannequin. As a results of the adjustments in our enterprise construction, significantly the elevated proportion
of wholesale and luxurious items, our gross revenue elevated by 17.5% with a reasonable decline in gross margin. Despite a restricted short-term
affect on working revenue, we consider the present technique will enhance capital effectivity, speed up market enlargement, strengthen
our digital capabilities, and additional improve the flexibleness and scalability of our enterprise mannequin over the long run.

 

“Our
worldwide enlargement additionally continued to realize momentum, with abroad gross sales accounting for 47.1% of complete income. This was supported
by rising contributions from Hong Kong and different abroad markets, together with continued enlargement of our international retail footprint.
We consider our rising worldwide presence will additional strengthen model recognition, diversify income base, and create further
long-term progress alternatives.

 

“Overall,
fiscal yr 2026 outcomes show the resilience, scalability, and monetary high quality of our enterprise mannequin. While reported web earnings
and earnings per share declined yr over yr, this was primarily attributable to tax-related components somewhat than adjustments in our underlying
working efficiency. Excluding this stuff, our core enterprise continued to ship stable working efficiency, supported by sturdy
income progress, wholesome buyer demand, and disciplined execution.

 

“As
macroeconomic circumstances proceed to enhance with recovering client demand throughout our key markets, we stay assured in our skill
to generate sustainable, worthwhile progress by means of disciplined capital allocation, prudent monetary administration, and continued operational
excellence.”

 

Fiscal
Year 2026 Financial Summary

 

●

Total income was $373.2 million for fiscal yr 2026, which elevated by 77.6% from $210.1 million for the fiscal yr ended March 31, 2025 (“fiscal year 2025”).

 

●

Gross revenue was $28.1 million for fiscal yr 2026, which elevated by 17.5% from $23.9 million for fiscal yr 2025.

 

●

Income from operations was $3.2 million for fiscal yr 2026, in contrast to $4.7 million for fiscal yr 2025.

 

●

Net earnings decreased to $0.7 million for fiscal yr 2026, in comparison with $6.6 million for fiscal yr 2025.

 

●

Net money offered by investing actions elevated to $6.1 million for fiscal yr 2026, from web money utilized in investing actions of $1.0 million for fiscal yr 2025.

 

●

Basic earnings per share was $0.02 for fiscal yr 2026. Diluted earnings per share was $0.02 for fiscal yr 2026.

 

 

Fiscal
Year 2026 Financial Results

 

Revenue

 

Revenue elevated
by 77.6%, to $373.2 million for fiscal yr 2026, from $210.1 million for fiscal yr 2025. The enhance within the Company’s
income consisted of elevated income from directly-operated bodily shops and franchise shops and wholesale clients, which was
partially offset by the decreased income from on-line shops and providers. Revenue generated from firms positioned in Japan accounted
for 52.9% and 70.5% of the Company’s complete income for fiscal years 2026 and 2025, respectively. Revenue generated from firms
positioned in Hong Kong and others accounted for 47.1% and 29.5% of the Company’s complete income for fiscal years 2026 and 2025, respectively.

 

		For the Fiscal Years Ended March 31,																Variance
(in tens of millions)		2026				%				2025				%				Amount				%
Directly-operated bodily shops		$	19.8				5.3	%		$	17.1				8.1	%		$	2.7				15.7	%
Online shops and providers			6.7				1.8	%			7.5				3.6	%			(0.8	)			(10.7	)%
Franchise shops and wholesale clients			346.7				92.9	%			185.5				88.3	%			161.2				86.9	%
Total Revenue		$	373.2				100.0	%		$	210.1				100.0	%		$	163.1				77.6	%

 

Revenue
denominated in Japanese Yen elevated by 75.7%, to ¥56,134.8 million for fiscal yr 2026, from ¥31,952.8 million for fiscal
yr 2025. The enhance was primarily on account of elevated income from franchise shops and wholesale clients by 84.9%, to ¥52,170.1
million for fiscal yr 2026, from ¥28,215.6 million for fiscal yr 2025, in addition to elevated income from directly-operated bodily
shops by 14.2%, to ¥2,965.5 million for fiscal yr 2026, from ¥2,597.6 million for fiscal yr 2025. The enhance was partially
offset by the decreased income from on-line shops and providers by 12.3%, to ¥999.3 million for fiscal yr 2026, from ¥1,139.6
million for fiscal yr 2025.

 

		For the Fiscal Years Ended March 31,																Variance
(in tens of millions)		2026				%				2025				%				Amount				%
Directly-operated bodily shops		¥	2,965.5				5.3	%		¥	2,597.6				8.1	%		¥	367.9				14.2	%
Online shops and providers			999.3				1.8	%			1,139.6				3.6	%			(140.3	)			(12.3	)%
Franchise shops and wholesale clients			52,170.1				92.9	%			28,215.6				88.3	%			23,954.5				84.9	%
Total Revenue		¥	56,134.8				100.0	%		¥	31,952.8				100.0	%		¥	24,182.0				75.7	%

 

Note:
Amounts might not sum on account of rounding.

 

Revenue
from directly-operated bodily shops elevated by 15.7%, to $19.8 million for fiscal yr 2026, from $17.1 million for
fiscal yr 2025. The enhance was primarily on account of elevated income generated from the Company’s present directly-operated bodily
shops in Hong Kong because of their full-year operations, in addition to the opening of two new bodily shops in Hong Kong throughout
fiscal yr 2026. In addition, the Company provided promotion actions and value reductions, which attracted extra clients to make purchases
on the Company’s bodily shops, and income from the Company’s present bodily shops in Hong Kong additionally elevated in
fiscal yr 2026, in comparison with the prior yr. The above-mentioned enhance was partially offset by a lower in income from directly-operated
bodily shops in Japan, ensuing from the closure of 1 bodily retailer and the transformation of one other bodily retailer throughout fiscal
yr 2026. The Company proactively optimized its retailer construction and transformed this underperforming bodily retailer in Japan right into a franchise
retailer, with the intention to enhance the Company’s money movement and dealing capital. Following the change, the shop started buying merchandise
from the Company like different franchise shops, and accordingly, the associated income was recorded beneath franchise shops and wholesale
clients.

 

Revenue
from on-line shops and providers decreased by 10.7%, to $6.7 million for fiscal yr 2026, from $7.5 million for fiscal yr 2025. The
lower was primarily on account of a discount within the variety of on-line shops, because the Company closed sure underperforming on-line shops to
enhance the Company’s profitability. The lower was partially offset by a rise in income from providers, which resulted
from new clients that the Company developed.

 

 

Revenue
from franchise shops and wholesale clients elevated by 86.9%, to $346.7 million for fiscal yr 2026, from $185.5 million for
fiscal yr 2025. The enhance was primarily as a result of substantial progress in income from gross sales of luxurious merchandise. During fiscal yr
2026, the Company efficiently achieved a strategic enlargement that greater than doubled income from franchise shops and wholesale clients
and meaningfully expanded the Company’s market share. This deliberate technique strengthens the Company’s wholesale platform
and provider relationships. In addition, there was elevated income from the brand new wholesale clients because the Company continued to broaden
the Company’s buyer base by getting into into enterprise relationships with new wholesale clients throughout fiscal yr 2026.

 

Cost
of Revenue

 

Total
value of income elevated by 85.3%, to $345.1 million for fiscal yr 2026, from $186.2 million for fiscal yr 2025.

 

Gross
Profit and Gross Margin

 

Gross
revenue elevated by 17.5%, to $28.1 million for fiscal yr 2026, from $23.9 million for fiscal yr 2025. The enhance
was primarily attributable to the general enhance in income.

 

Gross
margin decreased by 3.9 proportion factors to 7.5% for fiscal yr 2026, from 11.4% for fiscal yr 2025. The lower in general gross
margin was primarily attributable to shifts within the Company’s income combine, as income from franchise shops and wholesale clients,
which carry comparatively decrease gross margins, accounted for a considerably bigger proportion of complete income throughout fiscal yr 2026.

 

Operating
Expenses

 

Operating
bills encompass promoting and advertising and marketing bills and basic and administrative bills, which primarily embrace payroll, worker
profit bills and bonus bills, transport bills, promotion and promoting bills, and different facility-related prices, resembling
retailer hire, utilities, and depreciation.

 

Operating
bills elevated by 29.6%, to $24.9 million for fiscal yr 2026, from $19.2 million for fiscal yr 2025. Operating
bills as a proportion of complete income improved to six.7% for fiscal yr 2026 from 9.1% for fiscal yr 2025. This 2.4 proportion factors
decline displays early working leverage throughout the Company’s enterprise, because the Company’s income scaled quicker than the
Company’s working value base. The enhance in working bills was primarily attributable to the next components:

 

1.

an enhance in different bills by 46.4%, to $8.4 million for fiscal yr 2026, from $5.7 million for fiscal yr 2025. The enhance was primarily on account of greater transport bills and different prices ensuing from the expansion within the scale of the Company’s operations;

 

2.

an enhance in provision for credit score losses by 515.4%, to a provision for credit score losses of $0.9 million for fiscal yr 2026, from a web restoration of credit score losses of $0.2 million for fiscal yr 2025. The enhance within the provision for credit score losses was primarily as a result of vital enhance in income and accounts receivable from franchise shops and wholesale clients, which resulted in a bigger provision for credit score losses throughout fiscal yr 2026;

 

3.

an enhance in payroll, worker profit bills, and bonus bills by 13.1%, to $7.4 million for fiscal yr 2026, from $6.5 million for fiscal yr 2025. The enhance was primarily as a result of elevated headcount attributable to the enlargement of the Company’s enterprise operations;

 

4.

an enhance in skilled service charges by 19.4%, to $3.9 million for fiscal yr 2026, from $3.2 million for fiscal yr 2025. The enhance was primarily on account of greater service charges incurred to speed up the gathering of accounts receivable, partially offset by a lower in skilled charges paid for a collection of economic investigation providers that had been required by banks in reference to the Company’s borrowings;

 

5.

an enhance in promotion and promoting bills by 361.9%, to $0.8 million for fiscal yr 2026, from $0.2 million for fiscal yr 2025. The enhance was primarily due to the Company’s intensified promoting and promotional efforts throughout fiscal yr 2026 to drive gross sales income progress;

 

6.

an enhance in lease bills by 13.3%, to $2.8 million for fiscal yr 2026, from $2.5 million for fiscal yr 2025. The enhance was primarily as a result of opening of recent bodily shops in Hong Kong and Australia in fiscal yr 2026; and

 

7.

a lower in transaction fee paid to third-party e-commerce market operators by 39.4%, to $0.8 million for fiscal yr 2026, from $1.3 million for fiscal yr 2025. The Company paid third-party e-commerce market operators transaction fee ranging from 1.8% to three.0% based mostly on the Company’s gross sales quantity. The lower in transaction fee was consistent with the lower within the Company’s on-line gross sales.

 

 

Interest
Expenses, web

 

Interest
bills, web included curiosity bills calculated at rate of interest per mortgage agreements and mortgage service prices, which had been straight
incremental to the mortgage agreements and amortized over the mortgage durations. Interest bills, web elevated by 15.2%, to $2.0 million for
fiscal yr 2026, from $1.7 million for fiscal yr 2025. The enhance was primarily on account of a rise in curiosity bills of
$0.6 million, which was primarily as a result of elevated weighted common rate of interest for fiscal yr 2026, which was partially offset by
the lower in amortized mortgage service prices in relation to the Company’s syndicated loans by $0.3 million.

 

Additional
and Delinquent Tax Due to Consumption Tax Correction

 

Since
January 2022, the Tokyo Regional Taxation Bureau had carried out a tax examination into the Company’s consumption tax submitting for
the interval from July 2018 to December 2021. As a results of the examination, the Company was required to return consumption tax refund
for export transactions that had been decided to not meet the tax exemption necessities on account of incomplete submission of related export
paperwork. As the failure in submission of related export paperwork was attributable to the Company’s suppliers and clients, the Company
entered into agreements with related suppliers and clients to say compensation for damages from the extra consumption tax fee.
On July 31, 2023, the Company obtained a reassessment discover from the Tokyo Regional Taxation Bureau, for added consumption tax
legal responsibility on a period-by-period foundation. Based on this reassessment, the Company acknowledged the extra tax for understatement and delinquent
tax of $0.6 million throughout fiscal yr 2024. However, the Company contested this reassessment and filed a request for overview with the
National Tax Tribunal on February 22, 2024, difficult the legality of the reassessment resolution and the imposition of further tax
penalties. On February 13, 2025, the Company obtained a ruling from the National Tax Tribunal, dated February 12, 2025, which upheld
the Company’s request and annulled the disposition. Accordingly, the Company recorded a restoration of $3.9 million throughout fiscal
yr 2025, representing the reversal of upward consumption tax changes and the corresponding understatement surcharges and delinquent
taxes imposed beneath the now-annulled reassessment. As the annulment additionally invalidated the downward consumption tax changes granted
by the tax bureau for sure different submitting durations, the Company was required to reinstate these tax liabilities to the quantities set forth
in its authentic amended return. Therefore, throughout fiscal yr 2026, the Company acknowledged $2.2 million in further consumption tax
and associated understatement surcharges.

 

Other
Income, web

 

Other
earnings, web primarily consists of tax refund, disposal acquire or loss from property and tools, authorities subsidy, and different immaterial
earnings and expense gadgets. Other earnings, web elevated by 700.7%, to $2.9 million for fiscal yr 2026, from $0.4 million for
fiscal yr 2025. The enhance was primarily as a result of elevated acquire from disposal of property and tools as in comparison with the identical interval
final yr.

 

Gain
(loss) from Foreign Currency Exchange

 

Gain
from international forex change was $0.4 million for fiscal yr 2026, as in comparison with a loss from international forex change
of $0.4 million for fiscal yr 2025. The acquire from international forex change was primarily as a result of fluctuations in international
change charges on the Company’s accounts receivable that denominated in foreign exchange such because the U.S. greenback throughout fiscal
yr 2026. It was additionally as a result of acquire from international forex change by the Company’s Hong Kong subsidiaries, which was primarily
as a result of vital fluctuations of international change charge on its payables that had been denominated in Japanese Yen throughout fiscal yr
2026.

 

Provision
(Benefit) for Income Taxes

 

Provision
for earnings taxes was $3.1 million for fiscal yr 2026, in comparison with an earnings tax good thing about $1.9 million for
fiscal yr 2025. The provision for earnings taxes elevated by 264.8%. The enhance was primarily on account of (i) greater present earnings tax bills
ensuing from elevated taxable earnings throughout fiscal yr 2026; (ii) the refund of tax acknowledged within the prior fiscal yr following
the ruling from the National Tax Tribunal, dated February 12, 2025, which elevated the earnings tax profit for fiscal yr 2025; and
(iii) elevated deferred earnings tax bills arising from further deferred tax liabilities ensuing from the rise within the change
in honest worth of warrants liabilities throughout fiscal yr 2026.

 

 

Net
Income

 

Net
earnings decreased to $0.7 million for fiscal yr 2026, in comparison with $6.6 million for fiscal yr 2025.

 

Basic
and Diluted Earnings per Share

 

Basic
earnings per share was $0.02 for fiscal yr 2026, in comparison with $0.16 for fiscal yr 2025. Diluted earnings per share
was $0.02 for fiscal yr 2026, in comparison with $0.16 for fiscal yr 2025.

 

Financial
Condition

 

As
of March 31, 2026, the Company had $2.1 million in money as in comparison with $4.8 million as of March 31, 2025.
As of March 31, 2026, the Company additionally had roughly $186.8 million in account receivable stability due from third events.
Approximately 22.3% of the March 31, 2026 stability has subsequently been collected, and nearly all of the remaining stability
is anticipated to be collected by December 31, 2026. The assortment of such receivables made money obtainable to be used within the Company’s
operations as working capital, if crucial.

 

Net
money utilized in working actions was $10.3 million for fiscal yr 2026, primarily derived from web earnings of $0.7 million for the yr,
and web adjustments within the Company’s working property and liabilities, which primarily included elevated accounts receivable of $87.3
million, elevated merchandise inventories of $10.7 million, decreased accounts payable to associated events of $2.7 million and decreased
working lease liabilities of $2.5 million, which was partially offset by the elevated accounts payable of $86.3 million, elevated
deferred income of $1.3 million and elevated different payables and different present liabilities of $1.2 million.

 

Net
money offered by investing actions amounted to $6.1 million for fiscal yr 2026, primarily on account of proceeds from disposal of property
and tools within the combination quantity of $7.0 million, partially offset by an funding in a life insurance coverage coverage of $0.6 million,
and purchases of property and tools of $0.3 million.

 

Net
money offered by financing actions was $4.2 million for fiscal yr 2026, which primarily consisted of proceeds from short-term borrowings
of $19.4 million, proceeds from long-term borrowings of $14.0 million, proceeds from associated events borrowings of $3.4 million, and
capital contribution from non-controlling shareholders of $0.2 million, partially offset by repayments of short-term borrowings of $24.2
million, repayments of long-term borrowings of $7.8 million, fee of dividend distribution of $0.5 million, and compensation of obligations
beneath finance leases of $0.2 million.

 

Conference
Call Information

 

The
Company will host an earnings convention name at 8:30 am U.S. Eastern Time (9:30 pm Japan Standard Time) on July
10, 2026. Dial-in particulars for the convention name are as follows:

 

Dial-in particulars for the convention name are as follows:
Date:	July 10, 2026
Time:	8:30 am U.S. Eastern Time
International:	1-412-902-4272
United States Toll Free:	1-888-346-8982
Conference ID	Tokyo Lifestyle Co., Ltd.

 

Please
dial in a minimum of quarter-hour earlier than the graduation of the decision to make sure well timed participation.

 

 

For
these unable to take part, an audio replay of the convention name can be obtainable from roughly one hour after the tip of the
reside name till July 17, 2026. The dial-in for the replay is 1-855-669-9658 inside the United States or 1-412-317-0088
internationally. The replay entry code is 5582239.

 

A
reside and archived webcast of the convention name can even be obtainable on the Company’s investor relations web site at 

 

About
Tokyo Lifestyle Co., Ltd.

 

Headquartered
in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (previously generally known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese magnificence and
well being merchandise, sundry merchandise, luxurious merchandise, digital merchandise, collectible playing cards, fashionable toys, and different merchandise in Hong Kong,
Japan, North America, Thailand, Vietnam, the United Kingdom and Australia. The Company affords 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 gadgets), sundry merchandise (together with residence items), collectible playing cards and stylish toys (together with Pokémon playing cards, BE@RBRICK
and different fashionable merchandise) and different merchandise (together with meals and alcoholic drinks). The Company at the moment sells its merchandise by means of
directly-operated bodily shops, by means of on-line shops, and to franchise shops and wholesale clients. For extra data, please
go to the Company’s web site at 

 

Forward-Looking
Statements

 

Certain
statements on this press launch are forward-looking statements, throughout the that 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 based mostly on present expectations and projections about future occasions and monetary tendencies
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 resembling “may,” “will,” “expect,” “anticipate,”
“aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,”
“is/are likely to,” or different comparable expressions. The Company undertakes no obligation to replace forward-looking statements
to replicate subsequent occurring occasions or circumstances, or adjustments in its expectations, besides as could also be required by legislation. Although the
Company believes that the expectations expressed in these forward-looking statements are affordable, it can not guarantee you that such expectations
will become appropriate, and the Company cautions buyers that precise outcomes might differ materially from the anticipated outcomes
and encourages buyers to overview different components that will have an effect on its future leads to the Company’s annual report on Form 20-F and in
its different filings with the U.S. Securities and Exchange Commission.

 

For
extra data, please contact:

 

Tokyo
Lifestyle Co., Ltd.

 

Investor
Relations Department
Email: [email protected]

 

Ascent
Investor Relations LLC

 

Tina
Xiao
President
Phone: +1-646-932-7242
Email: [email protected]

 

 

TOKYO
LIFESTYLE CO., LTD.
CONSOLIDATED BALANCE SHEETS

 

		March 31,				March 31,
		2026				2025
ASSETS
CURRENT ASSETS:
Cash		$	2,115,342			$	4,819,639
Accounts receivable, web			186,830,286				107,305,580
Accounts receivable – associated events, web			4,866				117
Merchandise inventories, web			14,433,760				4,370,803
Due from associated events			1,216,953				1,208
Compensation receivable for consumption tax, present, web			8,707,457				7,178,775
Prepaid bills and different present property, web			6,127,587				13,542,183
TOTAL CURRENT ASSETS			219,436,251				137,218,305
Property and tools, web			4,492,810				10,763,020
Operating lease right-of-use property			7,935,439				6,031,284
Life insurance coverage coverage, money give up worth			527,873				–
Compensation receivable for consumption tax, non-current, web			–				2,039,840
Long-term pay as you go bills and different non-current property, web			1,243,382				1,777,736
TOTAL ASSETS		$	233,635,755			$	157,830,185
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings		$	50,319,318			$	57,903,207
Current portion of long-term borrowings			1,790,579				706,531
Accounts payable			105,635,444				25,057,104
Accounts payable – associated events			154				2,678,588
Due to associated events			426,156				27,678
Deferred income			2,336,812				8,027,153
Taxes payable			1,123,404				349,671
Operating lease liabilities, present			2,433,468				2,068,399
Finance lease liabilities, present			86,270				138,180
Warrants liabilities			1,001,178				2,502,718
Other payables and different present liabilities			3,215,841				1,998,713
TOTAL CURRENT LIABILITIES			168,368,624				101,457,942
Due to associated events, non-current			2,842,433				–
Operating lease liabilities, non-current			5,670,073				4,003,366
Finance lease liabilities, non-current			73,053				119,068
Long-term borrowings			11,516,741				6,501,772
Other non-current liabilities			1,291,866				1,470,135
Deferred tax liabilities, web			2,707,787				1,263,872
TOTAL LIABILITIES		$	192,470,577			$	114,816,155
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Ordinary shares, no par worth,100,000,000 shares licensed; 42,327,806 shares and 42,220,206 shares issued and excellent as of March 31, 2026 and 2025, respectively			81,150				81,150
Capital reserve			26,946,116				26,946,116
Retained earnings			27,877,884				27,695,268
Accumulated different complete loss			(13,839,803	)			(11,708,504	)
TOTAL SHAREHOLDERS’ EQUITY			41,065,347				43,014,030
Non-controlling curiosity			99,831				–
TOTAL EQUITY			41,165,178				43,014,030
TOTAL LIABILITIES AND EQUITY		$	233,635,755			$	157,830,185

 

 

TOKYO
LIFESTYLE CO., LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

 

		For the Fiscal Years Ended March 31,
		2026				2025				2024
REVENUE
Revenue – third events		$	373,219,124			$	202,278,304			$	189,674,322
Revenue – associated events			4,695				7,840,934				6,006,993
Total income			373,223,819				210,119,238				195,681,315
COSTS AND OPERATING EXPENSES
Merchandise prices			345,118,553				186,201,939				172,306,308
Selling, basic and administrative bills			24,883,467				19,198,116				17,597,125
Total prices and working bills			370,002,020				205,400,055				189,903,433
INCOME FROM OPERATIONS			3,221,799				4,719,183				5,777,882
OTHER INCOME (EXPENSE)
Interest expense, web			(1,986,483	)			(1,723,819	)			(1,611,141	)
Additional and delinquent tax on account of consumption tax correction			(2,181,256	)			3,905,908				(628,876	)
Gain from disposal of fairness technique funding			–				–				190,571
Gain from disposal of a subsidiary			51,639				–				341,139
Cash give up worth loss			(71,448	)			–				–
Other earnings, web			2,916,749				364,294				760,435
Gain (loss) from international forex change			364,116				(440,055	)			3,065,971
Change in honest worth of warrants liabilities			1,438,866				(2,050,211	)			109,173
Loss from fairness technique investments			–				(20,049	)			(69,444	)
Total different earnings, web			532,183				36,068				2,157,828
INCOME BEFORE INCOME TAX PROVISION (BENEFIT)			3,753,982				4,755,251				7,935,710
PROVISION (BENEFIT) FOR INCOME TAXES			3,102,686				(1,883,237	)			456,774
NET INCOME			651,296				6,638,488				7,478,936
Less: web loss attributable to non-controlling curiosity			(65,434	)			–				–
NET INCOME ATTRIBUTABLE TO TOKYO LIFESTYLE CO., LTD.		$	716,730			$	6,638,488				7,478,936
OTHER COMPREHENSIVE INCOME
Net earnings			651,296				6,638,488				7,478,936
Foreign forex translation acquire (loss)			(2,131,299	)			284,522				(3,923,683	)
Total complete earnings (loss)			(1,480,003	)			6,923,010				3,555,253
Less: complete loss attributable to non-controlling curiosity			(60,053	)			–				–
TOTAL COMPREHENSIVE INCOME (LOSS)		$	(1,540,056	)		$	6,923,010				3,555,253
Earnings per extraordinary share
– fundamental		$	0.02			$	0.16			$	0.20
– diluted		$	0.02			$	0.16			$	0.20
Weighted common shares
– fundamental			42,327,806				42,242,610				37,264,162
– diluted			42,327,806				42,242,610				37,264,162

 

 

TOKYO
LIFESTYLE CO., LTD.

CONSOLIDATED
STATEMENTS OF CASH FLOWS

 

		For the Fiscal Years Ended March 31,
		2026				2025				2024
Cash flows from working actions:
Net Income		$	651,296			$	6,638,488			$	7,478,936
Adjustments to reconcile web earnings to web money offered by (utilized in) working actions:
Depreciation and amortization			1,150,519				952,126				1,232,611
Gain from disposal of property and tools			(2,393,351	)			(178,152	)			(712,685	)
Impairment of property and tools			–				143,621				–
Gain from unrealized international forex translation			(89,191	)			(13,986	)			(412,728	)
Provision for (reversal of) credit score losses			915,388				(220,368	)			(2,043,939	)
Addition (reversal) of merchandise inventories written down			(92,100	)			61,935				(68,361	)
Amortization of working lease right-of-use property			2,639,989				2,049,635				1,711,978
Deferred tax provision (profit)			1,606,325				(955,082	)			(1,778,277	)
Change in honest worth of warrants liabilities			(1,438,866	)			2,050,211				(109,173	)
Investment loss from fairness technique funding			–				20,049				69,444
Gain from disposal of fairness technique funding			–				–				(190,571	)
Loss on money give up worth			71,448				–				–
Accrued curiosity expense			62,912				100,416				–
Changes in working property and liabilities:
Accounts receivable			(87,270,000	)			(1,073,737	)			(24,747,655	)
Accounts receivable – associated events			(4,773	)			25,698				277,005
Merchandise inventories			(10,667,514	)			(13,596	)			2,355,034
Compensation receivable for consumption tax			–				696,224				11,284,665
Prepaid bills and different present property			(339,634	)			(10,772,468	)			949,043
Long time period pay as you go bills and different non-current property			465,056				501,659				315,809
Accounts payable			86,279,085				567,502				13,816,414
Accounts payable – associated events			(2,669,723	)			2,372,722				299,591
Deferred income			1,302,736				8,006,135				35,027
Taxes payable			818,845				(8,943,973	)			(6,977,961	)
Other payables and different present liabilities			1,212,727				(281,729	)			1,078,396
Operating lease liabilities			(2,514,494	)			(2,040,884	)			(1,711,398	)
Other non-current liabilities			5,261				(291,185	)			(239,250	)
Net utilized in offered by (utilized in) working actions			(10,298,059	)			(598,739	)			1,911,955
Cash flows from investing actions:
Purchase of property and tools			(313,995	)			(992,068	)			(929,308	)
Proceeds from disposal of property and tools			6,988,761				39,367				3,104,387
Investment in an fairness technique funding			–				(20,049	)			–
Investment in life insurance coverage coverage			(601,771	)			–				–
Proceeds from disposal of fairness technique funding			–				–				276,800
Proceeds from disposal of a subsidiary			–				–				34,600
Disposal of a subsidiary, web of money			–				–				(171,788	)
Repayments of loans to associated events			23,788				8,557				399,223
Net money offered by (utilized in) investing actions			6,096,783				(964,193	)			2,713,914
Cash flows from financing actions:
Capital contribution from non-controlling shareholders			159,884				–				–
Payment of dividend distribution			(530,957	)			–				–
Proceeds from issuance of extraordinary shares for warrants redemption			–				29,482				–
Proceeds from issuance of extraordinary shares, web of issuance prices			–				–				3,747,282
Proceeds from short-term borrowings			19,427,417				5,781,612				1,384,000
Repayments of short-term borrowings			(24,228,319	)			(1,446,786	)			(2,076,000	)
Proceeds from long-term borrowings			13,992,820				–				–
Repayments of long-term borrowings			(7,771,119	)			(204,024	)			(4,186,712	)
Proceeds from (repayments of) associated events borrowings			3,359,437				(15,346	)			(228,966	)
Repayment of obligations beneath finance leases			(166,428	)			(177,320	)			(420,910	)
Net money offered by (utilized in) financing actions			4,242,735				3,967,618				(1,781,306	)
Effect of change charge fluctuation on money			(2,745,756	)			(60,585	)			(2,135,466	)
Net enhance (lower) in money			(2,704,297	)			2,344,101				709,097
Cash at starting of yr			4,819,639				2,475,538				1,766,441
Cash at finish of yr		$	2,115,342			$	4,819,639			$	2,475,538
Supplemental money movement data
Cash paid for earnings taxes		$	872,707			$	4,207,552			$	880,308
Cash paid for curiosity		$	1,637,499			$	1,072,273			$	798,353
Supplemental non-cash working actions
Purchase of property and tools financed beneath finance leases		$	77,295			$	–			$	–
Right of use property obtained in change for working lease liabilities		$	4,715,753			$	–			$	3,118,676
Reduction of right-of-use property and working lease obligations on account of early termination of lease settlement		$	233,202			$	–			$	–