Tokyo Lifestyle Co., Ltd. Q4 FY2025 earnings call

• Total revenue saw robust growth of 7.4% driven by directly operated physical stores, franchise stores, and wholesale customers. - Adjusted business layout to enhance resource allocation, improved operational efficiency, and drove profitability. - Optimized local operation in Japan by converting some directly operated stores to franchise stores and refined product offerings, with total SKUs increasing to 201,300 from 151,700. - Added 3 franchise stores and 54 new wholesale customers. - Successfully opened 5 new directly operated stores in the US, Canada, and Hong Kong. - Revenue from collectible cards and trendy toys grew to over 1,300 SKUs. - Received a Gold Stevie Award in the Company of the Year - Retail Medium-size category.

In fiscal year 2025, total revenue grew 7.4%. Revenue from directly operated physical stores increased by 14.4% to $17.1 million. Revenue from franchise stores and wholesale customers grew by 9.1% to $185.5 million, accounting for 88.3% of total revenue. Revenue from collectible cards and trendy toys totaled $11.4 million, representing 5.4% of total revenue.

• Deepening collaboration with existing franchisees and seeking new partnerships in Asia and Oceanian markets. - Established new subsidiaries in Australia and plan to open new stores in Vietnam and Australia, and prepare a new store in Riyadh, Saudi Arabia to strengthen global strategic layout.