Tokyo Lifestyle revenue rises 77.6% to $373 million

• Tokyo Lifestyle reported fiscal 2026 revenue of $373.2 million, up 77.6% year over year.
• Net income declined to $0.7 million from $6.6 million, while gross margin decreased to 7.5%.
• The company said growth was driven mainly by higher franchise and wholesale revenue.

Tokyo Lifestyle (NASDAQ:TKLF) reported fiscal year 2026 revenue of $373.2 million, an increase of 77.6% from $210.1 million, driven mainly by growth in franchise and wholesale sales.

The revenue increase compared with the prior year was led by franchise and wholesale revenue, which rose 86.9% to $346.7 million, while direct-operated store revenue increased 15.7% to $19.8 million and online revenue declined 10.7%.

Gross profit increased 17.5% to $28.1 million, but gross margin declined to 7.5% from 11.4% due to a higher contribution from lower-margin franchise and wholesale activities, while operating expenses increased 29.6% to $24.9 million.

Tokyo Lifestyle reported operating income of $3.2 million compared with $4.7 million in the previous year and net income of $0.7 million compared with $6.6 million.

Overseas sales represented 47.1% of Tokyo Lifestyle’s revenue in fiscal 2026, reflecting the company’s expansion beyond its domestic market through franchise, wholesale and retail operations.

Tokyo Lifestyle operates Japanese lifestyle retail businesses focused on beauty, health, fashion and consumer products, with its fiscal 2026 total assets increasing by 48% as the company expanded its operations.