Tokyo Lifestyle, the Japanese beauty and lifestyle retailer formerly known as Yoshitsu, posted a 77.6% year-on-year rise in revenue to $373.2m for the fiscal year ended 31 March 2026.
The growth was driven primarily by its franchise and wholesale sales channels, the company said.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Net income, however, fell sharply to $0.65m from $6.6m in the prior year.
Gross profit increased 17.5% to $28.1m, though gross margin contracted to 7.5% from 11.4%, as lower-margin franchise and wholesale sales made up a bigger proportion of overall revenue.
Operating income dropped to $3.2m from $4.7m, even as operating expenses climbed 29.6% to $24.9m.
Operating expenses as a share of revenue nonetheless improved, falling to 6.7% from 9.1%.
Sales to franchise stores and wholesale customers rose 86.9% to $346.7m, helped by increased demand for luxury products and a broader wholesale customer base.
Revenue generated by directly operated stores climbed 15.7% to $19.8m, supported by new store launches and improved performance in Hong Kong.
Online store and services revenue, by contrast, dropped 10.7% to $6.7m, following the shutdown of underperforming online outlets.
On 31 March 2026, cash and cash equivalents totalled $2.1m, down from $4.8m the previous year.
Basic and diluted earnings per share for FY26 were $0.02, down from $0.16 in the previous fiscal year.
Tokyo Lifestyle principal executive officer Mei Kanayama said: “Fiscal year 2026 was a year of strong execution across our business, resulting in robust revenue growth driven by continued expansion of our directly-operated stores, franchise network, and wholesale operations, all of which achieved double-digit growth.
“We believe that these results demonstrate the effectiveness of our strategy to diversify our product portfolio, broaden our customer base, and accelerate our global market expansion.”
In November 2025, Tokyo Lifestyle launched its first directly operated store under the Reiwatakiya brand in Ho Chi Minh City, Vietnam.
The store’s position near well-known shopping centres and landmarks allows it to serve both local and international customers.
