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Yoshitsu Co. Ltd. Sponsored ADR
(NASDAQ:TKLF)
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Rating:50Neutral
Price Target:
$2.00
▼(-2.91% Downside)
Action:Reiterated
Date:07/12/26
The score is primarily weighed down by weak financial quality—sharp margin compression, elevated leverage, and recurring negative operating/free cash flow. Offsetting factors include improving near-term technical momentum and a heavily discounted valuation with a moderate dividend yield, while the latest earnings call supports growth ambitions but underscores meaningful profitability and liquidity risks.
Positive Factors
Revenue Growth
Sustained, large top-line growth (77.6% YoY) indicates strong product-market fit and expanding distribution reach. Durable revenue scale provides room to invest in logistics, marketing and margins over the medium term if the company can stabilize mix and convert sales into cash.
Negative Factors
Gross Margin Compression
A nearly 4ppt margin drop materially lowers the earnings buffer and increases sensitivity to input, shipping, or promotional cost shocks. Persistently lower gross margins from mix shifts constrain operating profit and make self-funded growth and margin recovery more difficult over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained, large top-line growth (77.6% YoY) indicates strong product-market fit and expanding distribution reach. Durable revenue scale provides room to invest in logistics, marketing and margins over the medium term if the company can stabilize mix and convert sales into cash.
Read all positive factors
Yoshitsu Co. Ltd. Sponsored ADR (TKLF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.47M
Dividend Yield4.26%
Average Volume (3M)114.41K
Price to Earnings (P/E)1.2
Beta (1Y)1.02
Revenue Growth77.22%
EPS Growth-89.32%
CountryUS
Employees130
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.70
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)0.02
Price to Sales (P/S)0.00242
P/FCF Ratio-0.09
Enterprise Value/Market Cap7.97
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit2.40
Enterprise Value/Ebitda17.72
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Yoshitsu Co. Ltd. Sponsored ADR Business Overview & Revenue Model
Company Description
Tokyo Lifestyle Co., Ltd. (TKLF) operates as a retailer and wholesaler, distributing a wide array of beauty, health, and general merchandise. Its reach extends across multiple international markets, including Japan, China, Hong Kong, the United St...
How the Company Makes Money
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Yoshitsu Co. Ltd. Sponsored ADR Earnings Call Summary
Earnings Call Date:Jul 10, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 18, 2026
Earnings Call Sentiment Neutral
The call highlights exceptional top-line growth (total revenue +77.6%, franchise/wholesale +86.9%) and successful strategic expansion (asset-light scaling, luxury goods contribution, 48% asset growth). However, material concerns include a steep decline in net income and EPS, compressed gross margin (down 3.9 ppt), rising operating expenses (+29.6%), operating cash outflow (-$10.3M), low cash balance ($2.1M) and large accounts receivable exposure. Management frames some negatives as mix- and tax-related and emphasizes long-term growth plans. Overall, the positive execution on growth and expansion is tempered by meaningful near-term profitability and liquidity challenges, leaving the call balanced between strong growth momentum and financial risks.Positive Updates
Record Revenue Growth
Total revenue increased 77.6% year-over-year to $373.2M (from $210.1M), driven largely by wholesale and franchise expansion and higher luxury product sales.
Negative Updates
Sharp Decline in Net Income and EPS
Net income fell to $0.7M from $6.6M in fiscal 2025 (≈89% decline). Basic and diluted EPS declined to $0.02 from $0.16.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue Growth
Total revenue increased 77.6% year-over-year to $373.2M (from $210.1M), driven largely by wholesale and franchise expansion and higher luxury product sales.
Read all positive updates
Company Guidance
The company's forward guidance emphasizes continued asset‑light international expansion and disciplined execution, including a new distribution center in Australia in 2026, additional distribution centers planned in other strategic markets, and a target to open 20 additional directly operated stores and 23 new franchise stores over the next three years across the U.S., Canada, Hong Kong, Australia, Thailand, Taiwan, Japan, Southeast Asia, Macau and Europe, alongside conversions of selected underperforming directly operated stores to franchise models; this roadmap builds on FY2026 results — total revenue +77.6% to $373.2M (directly operated stores +15.7% to $19.8M; franchise & wholesale +86.9% to $346.7M), total assets +48%, gross profit +17.5% to $28.1M with gross margin 7.5% (‑3.9 ppt), operating expenses +29.6% to $24.9M, operating income $3.2M, net income $0.7M, basic/diluted EPS $0.02, cash $2.1M, accounts receivable $186.8M (22.3% collected post year‑end), inventory $14.4M, net cash used in operations $10.3M, net cash provided by investing $6.1M and by financing $4.2M — and management reiterated focus on cost management, customer acquisition, deeper engagement and portfolio diversification to drive sustainable long‑term growth.Yoshitsu Co. Ltd. Sponsored ADR Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
41
Neutral
Cash Flow
24
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 372.88M | 210.12M | 195.68M | 169.72M | 234.75M |
| Gross Profit | 28.08M | 23.92M | 23.38M | 29.43M | 43.71M |
| EBITDA | 7.01M | 9.48M | 450.81M | -1.90M | 12.55M |
| Net Income | 716.08K | 6.64M | 7.48M | -8.05M | 3.92M |
Balance Sheet | |||||
| Total Assets | 234.60M | 157.90M | 142.00M | 146.68M | 127.47M |
| Cash, Cash Equivalents and Short-Term Investments | 2.12M | 4.82M | 2.48M | 1.77M | 18.27M |
| Total Debt | 75.21M | 71.45M | 65.05M | 77.48M | 68.16M |
| Total Liabilities | 193.41M | 114.86M | 105.95M | 117.39M | 83.03M |
| Stockholders Equity | 41.09M | 43.03M | 36.06M | 29.28M | 44.45M |
Cash Flow | |||||
| Free Cash Flow | -10.60M | -1.64M | 982.65K | -26.67M | -10.04M |
| Operating Cash Flow | -10.29M | -616.07K | 1.91M | -25.74M | -7.01M |
| Investing Cash Flow | 6.25M | -992.10K | 2.71M | -743.27K | -3.11M |
| Financing Cash Flow | 4.08M | 4.08M | -1.78M | 12.75M | 13.76M |
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 0 New Risks
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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $5.98M | -0.02 | -24.71% | ― | -10.67% | -83.85% | |
50 Neutral | $8.47M | 1.16 | 1.71% | 4.07% | 77.22% | -89.32% | |
47 Neutral | $87.60M | -12.35 | -9.41% | ― | -8.16% | 85.14% | |
45 Neutral | $9.42M | -0.71 | -2383.34% | ― | -7.51% | -6001.27% | |
45 Neutral | $45.39M | -4.17 | -106.32% | ― | -13.98% | 64.53% |
* Consumer Cyclical Sector Average
TKLF
Yoshitsu Co. Ltd. Sponsored ADR
1.97
-1.73
-46.76%
MTEX
Mannatech
4.79
-3.65
-43.25%
TANH
Tantech Holdings
0.42
-1.58
-78.95%
SKIN
Beauty Health
0.69
-0.92
-57.19%
GROV
Grove Collaborative Holdings
1.10
-0.27
-19.71%
Yoshitsu Co. Ltd. Sponsored ADR Corporate Events
Tokyo Lifestyle Co., Ltd. Shareholders Approve FY2025–26 Results, Dividend and New Auditors
Jul 23, 2026
Tokyo Lifestyle Co., Ltd. reported the outcomes of its 20th annual general meeting of shareholders, held in Tokyo on June 26, 2026, covering the fiscal year from April 1, 2025 to March 31, 2026. At the meeting, shareholders received the business r...
Tokyo Lifestyle Posts 77% Revenue Jump but Lower Net Income in Fiscal 2026
Jul 10, 2026
Tokyo Lifestyle Co., Ltd. reported fiscal year 2026 results on July 10, 2026, highlighting a 77.6% surge in revenue to $373.2 million driven by expansion of directly operated stores, franchises and wholesale operations, especially in luxury goods ...
Tokyo Lifestyle Calls June 26 Shareholder Meeting to Approve Governance Shift and Year-End Dividend
Jun 12, 2026
Tokyo Lifestyle Co., Ltd. has convened its 20th Ordinary General Meeting of Shareholders in Tokyo for June 26, 2026, inviting both domestic shareholders and ADS holders and presenting proposals covering approval of fiscal 2025–26 financial s...
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.