Global Growth: Tokyo Lifestyle's Journey in 2025

Tokyo Lifestyle Co. , Ltd. has made significant strides in 2025, focusing on improving quality and efficiency rather than just expanding its size. The company has successfully navigated through a tough economic environment, marked by geopolitical tensions and supply chain issues. Despite these challenges, Tokyo Lifestyle has managed to strengthen its position in key markets and explore new ones. In Hong Kong and Japan, the company has added new stores and expanded its wholesale channels. This has helped to boost sales, especially in high-margin categories like cosmetics and luxury goods. The company has also tapped into the spending power of Generation Z by introducing pop toys and trading cards. This has not only optimized its product mix but also attracted a younger customer base. Tokyo Lifestyle has also made inroads into the mainland Chinese market by setting up a subsidiary in Shenzhen. In Southeast Asia, it has adopted a capital-efficient model, combining direct-operated flagship stores with franchise replication. This has led to the launch of flagship stores in Bangkok and Ho Chi Minh City.In North America, the company has expanded its direct-operated network to seven locations with the opening of a new store in Toronto. In Oceania, it has formed a joint venture and launched its first direct-operated store in Sydney, Australia. These moves have strengthened the company's global footprint and established a foundation for future expansion. The company has also achieved a significant improvement in operational efficiency through digital transformation and refined management practices. This has led to a sharp increase in inventory turnover and a substantial increase in total SKUs, while maintaining healthy gross profit margins. The company has also optimized its capital structure, strengthening liquidity and enhancing financial flexibility to support future mergers, acquisitions, and global expansion. Looking ahead to 2026, Tokyo Lifestyle plans to continue improving store-level profitability, deepening supply chain integration, and expanding asset-light partnership models. The company is committed to delivering sustainable, long-term value for its shareholders.