Despite a 256.9% revenue growth rate in 2025Q4, the company remains constrained by a thin 11.4% gross margin and a 2.2% operating margin, indicating limited pricing power.
Tokyo Lifestyle Co., Ltd. (TKLF) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 |
|---|
| Sales/Revenue | 522.06M | 210.12M | 195.68M | 169.72M | 234.75M | 224.76M | 139.57M | 96.46M |
| Revenue Growth % | 45.36% | 7.38% | 15.29% | -27.7% | 4.45% | 61.03% | 44.69% | - |
| Cost of Goods Sold | 468.46M | 186.2M | 172.31M | 140.29M | 191.04M | 181.5M | 112.09M | 77.39M |
| COGS % of Revenue | - | 88.62% | 88.05% | 82.66% | 81.38% | 80.75% | 80.31% | 80.23% |
| Gross Profit | 53.6M | 23.92M | 23.38M | 29.43M | 43.71M | 43.26M | 27.49M | 19.07M |
| Gross Margin % | 10.27% | 11.38% | 11.95% | 17.34% | 18.62% | 19.25% | 19.69% | 19.77% |
| Gross Profit Growth % | - | 2.32% | -20.58% | -32.67% | 1.05% | 57.38% | 44.13% | - |
| Operating Expenses | 39.79M | 19.2M | 17.6M | 28.61M | 36.42M | 32.54M | 18.05M | 11.85M |
| OpEx % of Revenue | - | 9.14% | 8.99% | 16.86% | 15.52% | 14.48% | 12.93% | 12.28% |
| Selling, General & Admin | 39.79M | 19.2M | 17.6M | 28.61M | 36.42M | 32.54M | 18.08M | 11.85M |
| SG&A % of Revenue | - | 9.14% | 8.99% | 16.86% | 15.52% | 14.48% | 12.95% | 12.28% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | -25.42K | 0 |
| Operating Income | 13.8M | 4.72M | 5.78M | 823.84K | 7.29M | 10.72M | 9.41M | 7.22M |
| Operating Margin % | 2.64% | 2.25% | 2.95% | 0.49% | 3.11% | 4.77% | 6.74% | 7.49% |
| Operating Income Growth % | - | -18.32% | 601.34% | -88.7% | -31.98% | 13.89% | 30.31% | - |
| EBITDA | 18.1M | 7.72M | 451.44M | 3.83M | 10.88M | 11.34M | 9.81M | 8.14M |
| EBITDA Margin % | 3.47% | 3.67% | 230.7% | 2.26% | 4.63% | 5.05% | 7.03% | 8.44% |
| EBITDA Growth % | 145.59% | -98.29% | 11682.78% | -64.78% | -4.11% | 15.6% | 20.55% | - |
| D&A (Non-Cash Add-back) | 4.3M | 3M | 445.66M | 3.01M | 3.59M | 626.19K | 403.16K | 918.93K |
| EBIT | 13.76M | 6.48M | 5.15M | -4.91M | 8.94M | 10.65M | 9.41M | 7.36M |
| Net Interest Income | -260.02M | -257.96M | -1.61M | -2.42M | -340M | -1.95M | -204.04M | 1.65K |
| Interest Income | 0 | 0 | 242.24M | 0 | 0 | 0 | 0 | 1.96M |
| Interest Expense | 259.19M | 257.96M | 243.85M | 2.42M | 340M | 1.95M | 204.04M | 1.96M |
| Other Income/Expense | -2.04M | 36.07K | 2.16M | -8.15M | -1.13M | -2.46M | -1.86M | -1.82M |
| Pretax Income | 11.76M | 4.76M | 7.94M | -7.32M | 6.16M | 8.26M | 7.55M | 5.4M |
| Pretax Margin % | 2.25% | 2.26% | 4.06% | -4.32% | 2.62% | 3.67% | 5.41% | 5.6% |
| Income Tax | 3.16M | 1.88M | 456.77K | 714.4K | 2.23M | 3.31M | 2.66M | 2.19M |
| Effective Tax Rate % | 26.85% | 39.6% | 5.76% | -9.75% | 36.28% | 40.04% | 35.19% | 40.54% |
| Net Income | 11.3M | 6.64M | 7.48M | -8.05M | 3.92M | 4.95M | 4.89M | 3.21M |
| Net Margin % | 2.17% | 3.16% | 3.82% | -4.74% | 1.67% | 2.2% | 3.5% | 3.33% |
| Net Income Growth % | 372.7% | -11.24% | 192.92% | -305.11% | -20.76% | 1.26% | 52.36% | - |
| Net Income (Continuing) | 11.26M | 6.64M | 7.48M | -8.04M | 3.92M | 4.95M | 4.89M | 3.21M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 7.56K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 26.70 | 15.70 | 20.10 | -2.20 | 12.00 | 1.30 | 18.30 | 1.20 |
| EPS Growth % | 1407.36% | -21.89% | 1013.64% | -118.33% | 823.08% | -92.9% | 1425% | - |
| EPS (Basic) | - | 15.70 | 20.10 | -2.20 | 12.00 | 1.30 | 18.30 | 1.20 |
| Diluted Shares Outstanding | 423.28K | 422.2K | 3.73M | 3.63M | 3.63M | 3.69M | 2.67M | 2.67M |
| Basic Shares Outstanding | 423.28K | 422.2K | 3.73M | 3.63M | 3.63M | 3.69M | 2.67M | 2.67M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying TKLF stock.
For fiscal year 2025, Tokyo Lifestyle Co., Ltd. (TKLF) reported total revenue of $210.1M. This represents a 117.8% increase compared to $96.5M in 2019.
Tokyo Lifestyle Co., Ltd. (TKLF) is profitable, generating $6.6M in net income for the fiscal year ending 2025 with a net profit margin of 3.2%.
Tokyo Lifestyle Co., Ltd. (TKLF) reported an operating income of $4.7M, resulting in an operating profit margin of 2.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Tokyo Lifestyle Co., Ltd. (TKLF) generated $23.9M in gross profit for the year, representing a gross profit margin of 11.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Geopolitical trade corridor dependency
Anomalous Revenue Growth Trends Observed
As reported in recent financial filings, TKLF's revenue trajectory exhibits an extreme, potentially non-organic expansion, with the most recent period showing a 256.9% growth rate that contrasts sharply with historical volatility and suggests either a fundamental accounting shift or a massive, one-time structural transformation in operations.
The reported revenue figures for 2025Q4 represent a massive departure from the company's historical scale, warranting intense scrutiny regarding whether this reflects genuine organic volume growth or a change in revenue recognition from net to gross. Investors should monitor whether this surge is sustainable or merely an artifact of new business scope that may not translate into long-term, recurring cash flow.
Structural Margin Compression Remains Persistent
Based on reported figures, TKLF operates with a structurally thin gross margin of 11.4%, reflecting its role as a low-value-add distributor where the company lacks significant pricing power over the Japanese beauty brands it facilitates for the cross-border market, leaving little room for operational error.
The consistent compression of gross margins from historical highs near 20% down to the current 11.4% level suggests that competitive intensity in the J-Beauty export space is eroding the company's middleman advantage. This thin margin profile implies that any minor increase in logistics or procurement costs will likely result in immediate and disproportionate pressure on the bottom line.
Operating Leverage Remains Highly Constrained
According to the latest income statement data, TKLF's operating margin of 2.2% indicates that the company struggles to achieve meaningful operating leverage, as SG&A expenses continue to scale in lockstep with gross profit, preventing the realization of significant economies of scale despite the recent top-line expansion.
The inability to expand operating margins beyond the low single digits suggests that the company's business model is inherently labor and logistics intensive. Without a shift toward higher-margin private-label products or a more automated distribution infrastructure, the company appears destined to remain a high-volume, low-margin entity with limited capacity to scale profitability.
Sustainability of Current Growth Questioned
As indicated by the provided financial data, the extreme volatility in EPS and revenue growth suggests that TKLF's current performance may be driven by transient factors, such as favorable currency arbitrage or accounting adjustments, rather than a durable, long-term competitive advantage in the global beauty retail market.
Short-term observers should be wary of the company's reliance on the Japan-China trade corridor, which remains highly susceptible to geopolitical shocks and regulatory changes. The lack of consistent profitability across multiple quarters suggests that the company's business model may be fundamentally fragile and overly dependent on external macroeconomic tailwinds that are outside of management's control.