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Yoshitsu Co. Ltd. Sponsored ADR (TKLF)
NASDAQ:TKLF
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Yoshitsu Co. Ltd. Sponsored ADR
(NASDAQ:TKLF)
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Rating:50Neutral
Price Target:
$3.00
▲(9.49% Upside)
Yoshitsu Co. Ltd. has strong revenue growth and strategic market expansion plans, but faces significant financial challenges, including high leverage and negative cash flows. The technical indicators suggest bearish momentum, while the low P/E ratio indicates potential undervaluation. Addressing profitability and cash flow issues is crucial for improving the stock's outlook.
Yoshitsu Co. Ltd. Sponsored ADR (TKLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.84M
Dividend YieldN/A
Average Volume (3M)114.41K
Price to Earnings (P/E)2.2
Beta (1Y)0.17
Revenue Growth7.75%
EPS Growth-21.61%
CountryUS
Employees140
SectorConsumer Cyclical
Sector Strength84
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.16
Shares Outstanding4,232,780
10 Day Avg. Volume301,850
30 Day Avg. Volume114,405
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.03
Price to Sales (P/S)0.00673
P/FCF Ratio-0.89
Enterprise Value/Market Cap5.92
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.02
Enterprise Value/Ebitda0.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Yoshitsu Co. Ltd. Sponsored ADR Business Overview & Revenue Model
Company DescriptionYoshitsu Co. Ltd. Sponsored ADR (TKLF) is a Chinese company engaged in the retail and distribution of health and wellness products, including traditional Chinese medicine and herbal supplements. The company operates in the e-commerce sector, leveraging both online and offline channels to reach consumers. Yoshitsu focuses on delivering high-quality products that promote health and well-being, with a particular emphasis on natural ingredients and traditional practices.
How the Company Makes MoneyYoshitsu generates revenue primarily through the sale of its health and wellness products, which include dietary supplements, herbal medicines, and personal care items. The company utilizes a multi-channel distribution strategy, selling products directly to consumers via its e-commerce platform as well as through partnerships with various retail outlets. Key revenue streams also include wholesale distributions to other businesses and collaborations with health practitioners. Additionally, the company may benefit from strategic partnerships that enhance its market reach and product offerings, thereby contributing to its overall earnings.
Yoshitsu Co. Ltd. Sponsored ADR Earnings Call Summary
Earnings Call Date:Jul 10, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Dec 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth, expansion in key markets, and increased product offerings, showcasing the company's robust business strategies and achievements. However, challenges were noted with a decline in net income and an increase in operating expenses, which slightly dampened the overall financial performance.Q4-2025 Updates
Positive Updates
Revenue Growth
Total revenue increased by 7.4% from $195.7 million to $210.1 million for fiscal year 2025.
Expansion in Key Markets
Successfully opened 5 new directly operated stores in the United States, Canada, and Hong Kong.
Increase in Product Offerings
Total SKUs increased to 201,300 from approximately 151,700 the previous year.
Growth in Franchise and Wholesale Revenue
Revenue from franchise stores and wholesale customers grew by 9.1%, accounting for 88.3% of total revenue.
Recognition and Awards
Received a Gold Stevie Award in the Company of the Year - Retail Medium-size category at the 21st Annual International Business Awards.
Negative Updates
Decline in Net Income
Net income was $6.6 million compared to $7.5 million for fiscal year 2024, primarily due to loss from foreign currency exchange and a change in fair value of warrants.
Operating Expenses Increase
Operating expenses increased by 9.1% to $19.2 million, attributed to payroll, employee benefits, and higher lease expenses.
Decrease in Income from Operations
Income from operations decreased from $5.8 million to $4.7 million.
Company Guidance
During Tokyo Lifestyle's Fiscal Year 2025 Earnings Conference Call, the company reported a total revenue increase of 7.4%, from $195.7 million to $210.1 million, largely driven by strong performance in directly operated stores and growth in franchise and wholesale segments. The company expanded its product offerings significantly, with SKUs increasing from approximately 151,700 to 201,300, and opened five new stores in the U.S., Canada, and Hong Kong. Revenue from directly operated stores rose by 14.4%, while franchise and wholesale revenue climbed 9.1%, accounting for 88.3% of total revenue. Despite a decline in net income to $6.6 million due to foreign exchange losses and changes in warrant values, gross profit increased by 2.3% to $23.9 million. Tokyo Lifestyle also emphasized its strategic expansion into new markets, including plans for new stores in Vietnam, Australia, and Saudi Arabia, while enhancing its product lines with over 1,300 SKUs in collectible cards and trendy toys, which generated $11.4 million in revenue.Yoshitsu Co. Ltd. Sponsored ADR Financial Statement Overview
Summary
Yoshitsu Co. Ltd. shows strong revenue growth but faces significant challenges in profitability and financial stability. High leverage and negative cash flows are concerning, indicating a need for strategic improvements in cost management and debt reduction.Income Statement
Yoshitsu Co. Ltd. has demonstrated significant revenue growth, particularly in the most recent year, with a remarkable increase of over 14,000%. However, the company's profit margins, including gross and net profit margins, remain relatively low. The EBIT and EBITDA margins have shown improvement, indicating better operational efficiency, but still need further enhancement to match industry standards.65
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage and potential financial risk. While the return on equity has improved, it remains volatile. The equity ratio is low, suggesting limited financial stability. These factors highlight the need for better capital management and risk mitigation strategies.40
Negative
Cash Flow
Cash flow analysis shows negative operating and free cash flows, which is concerning. The free cash flow growth rate is positive, but the operating cash flow to net income ratio is negative, indicating cash flow challenges. The company needs to focus on improving cash generation from operations to ensure long-term sustainability.30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.44B | 31.44B | 195.68M | 169.72M | 234.75M | 224.76M |
| Gross Profit | 3.58B | 3.58B | 23.38M | 29.43M | 43.71M | 43.26M |
| EBITDA | 1.42B | 1.42B | 1.89B | -1.90M | 12.55M | 11.34M |
| Net Income | 993.40M | 993.40M | 1.13B | -8.05M | 3.92M | 4.95M |
Balance Sheet | ||||||
| Total Assets | 23.62B | 23.62B | 142.92M | 146.68M | 127.47M | 112.94M |
| Cash, Cash Equivalents and Short-Term Investments | 721.22M | 721.22M | 2.48M | 1.77M | 18.27M | 16.38M |
| Total Debt | 10.69B | 10.69B | 65.05M | 77.48M | 68.16M | 75.50M |
| Total Liabilities | 17.18B | 17.18B | 106.87M | 117.39M | 83.02M | 90.71M |
| Stockholders Equity | 6.44B | 6.44B | 36.06M | 29.28M | 44.45M | 22.64M |
Cash Flow | ||||||
| Free Cash Flow | -238.05M | -238.05M | 148.72M | -26.67M | -10.04M | -6.18M |
| Operating Cash Flow | -89.60M | -89.60M | 1.91M | -25.74M | -7.01M | -3.24M |
| Investing Cash Flow | -144.28M | -144.28M | 2.71M | -743.27K | -3.11M | 1.78M |
| Financing Cash Flow | 593.72M | 593.72M | -1.78M | 12.75M | 13.76M | 11.04M |
Yoshitsu Co. Ltd. Sponsored ADR Technical Analysis
Negative
2.74
Price Trends
3.40
Negative
3.58
Negative
3.57
Negative
Market Momentum
-0.18
Positive
32.69
Neutral
2.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TKLF, the sentiment is Negative. The current price of 2.74 is below the 20-day moving average (MA) of 3.09, below the 50-day MA of 3.40, and below the 200-day MA of 3.57, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 32.69 is Neutral, neither overbought nor oversold. The STOCH value of 2.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TKLF.
Yoshitsu Co. Ltd. Sponsored ADR Risk Analysis
Yoshitsu Co. Ltd. Sponsored ADR disclosed 55 risk factors in its most recent earnings report. Yoshitsu Co. Ltd. Sponsored ADR reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Future acquisitions may have a material adverse effect on our ability to manage our business and our results of operations and financial condition. Q1, 2023
Yoshitsu Co. Ltd. Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $199.51M | 14.07 | 15.38% | ― | -5.47% | 13.42% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $1.74M | -0.14 | ― | ― | -9.25% | -109.49% | |
50 Neutral | $13.84M | 2.21 | 16.79% | ― | 7.75% | -21.61% | |
50 Neutral | $18.56M | ― | -19.54% | ― | -9.17% | -4.64% | |
47 Neutral | $55.87M | -2.13 | -130.15% | ― | -15.42% | 7.12% | |
46 Neutral | $175.02M | -4.90 | -18.73% | ― | -13.14% | 57.98% |
* Consumer Cyclical Sector Average
TKLF
Yoshitsu Co. Ltd. Sponsored ADR
2.74
-0.58
-17.47%
MTEX
Mannatech
9.76
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23.86%
TANH
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0.99
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-83.36%
SKIN
Beauty Health
1.32
-0.10
-7.04%
GROV
Grove Collaborative Holdings
1.35
-0.01
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EWCZ
European Wax Center
3.67
-2.67
-42.11%
Yoshitsu Co. Ltd. Sponsored ADR Corporate Events
Tokyo Lifestyle Co., Ltd. Announces Interim Dividend for 2025
Sep 29, 2025
On September 25, 2025, the board of directors of Tokyo Lifestyle Co., Ltd., operating under Japanese law, approved an interim dividend of JPY1.890 per share. This cash dividend is scheduled to be payable on or about November 20, 2025, to shareholders of record as of September 30, 2025. The announcement reflects the company’s commitment to returning value to its shareholders and may positively influence investor sentiment.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.