Yoshitsu Co., Ltd Reports First Six Months of Fiscal Year 2023 Financial Results

TOKYO, March 24, 2023

Mr. Mei Kanayama, Principal Executive Officer of Yoshitsu, commented, "During the first six months of fiscal year 2023, our online sales revenue generated from the Chinese market was significantly impacted by the resurgence of COVID-19. To navigate the challenging conditions we faced, we actively shifted our business strategy to focus on selling our products in domestic franchise stores and through wholesale customers, which partially offset the decrease in online store sales. We anticipate revenue growth over the second half of fiscal year 2023, as recent revenue headwinds seem to be dissipating and we remain focused on executing our strategic initiatives. With the recovery from the COVID-19 pandemic and the resumption of business activities globally, we plan to expand our global footprint in Europe and America. We intend to operate online stores in these regions and our recently rented new warehouses in the U.S. and U.K. lay a foundation for our business expansion efforts. In addition, we are exploring the advertising business of key opinion leaders ("KOLs") through our recently acquired Shenzhen Qingzhiliangpin Network Technology Co., Ltd., to capture the rapid growth of the live streaming e-commerce market. Besides the business expansion in the global market, we strive to diversify our products offering and we launched locally-made food products in our stores in Japan last year, initiating the food product segment. We expect to launch more food products through our multiple distribution channels in the near future. We believe our strategic plan will increase our profitability, enhance our brand awareness in the global market and create significant value for shareholders in the long run."

Mr. Youichiro Haga, Principal Accounting and Financial Officer of Yoshitsu, stated, "Despite the impacts of COVID-19 restriction in China and depreciation of the Japanese yen, the increase in our revenue generated from the domestic market during the first six months of 2023 demonstrates the success of our business strategy of focusing on domestic market. We are also pleased to see increased revenue from our directly-operated stores in Hong Kong, which we believe signifies the recognition of our brand. Looking forward, we will continue providing high-quality products and navigating our business strategy in today's challenging market by leveraging our strong capabilities. We believe we are on track to achieve long-term sustainable growth in both domestic and global expansion markets."

Recent Development

Acquisition of Tokyo Lifestyle Limited

On July 20, 2022, the Company entered into a definitive agreement (the "Agreement") with All Seas Global Limited (the "Seller"). Mr. Mei Kanayama, the representative director of the Company, held 100% of the equity interests in the Seller, and hence, the Seller and the Company were related parties under common control. Tokyo Lifestyle Limited ("TLS") is a company principally engaged in the import and retail of Japanese beauty and cosmetic products in Hong Kong and engaged in the live e-commerce business through its wholly-owned subsidiary, Shenzhen Qingzhiliangpin Network Technology Co., Ltd. Pursuant to the Agreement, the Company agreed to acquire 100% of the equity interests in TLS in consideration of the sum of ¥392,673,800 in cash (US$2,842,173), subject to certain terms. The transaction contemplated by the Agreement was approved by the Company's board of directors at a special board meeting on June 27, 2022. The 100% of the equity interests in TLS were transferred to the Company on July 20, 2022, and cash consideration was paid in full and the transaction was closed on July 27, 2022. This acquisition is a critical initiative of the Company's business strategy to boost its business expansion in the Southeast Asia market and advance the digital transformation of live streaming e-commerce in its retail business. This transaction was accounted for as an acquisition of a business under common control, accordingly, the Company's comparative financial information prior to the acquisition date of July 20, 2022 was retrospectively adjusted to include the financial results of TLS.

First Six Months of Fiscal Year 2023 Financial and Operational Highlights Anzeige Aktie im Fokus Eilmeldung SOL Global Investment Corp 0,26 € +0,78% Der nächste MicroStrategy? Der Solana-Schachzug dieses Unternehmens ist UMWERFEND Mehr zur Aktie » Kurse Yoshitsu Co Ltd -   0,00%
		For the Six Months Ended September 30,
(USD millions, except per share data)		2022				2021 (1)				% Change
Revenue			77.6				113.8				(31.8)	%
Directly-operated physical stores			5.8				6.0				(3.3)	%
Online stores and others (2)			22.0				62.4				(64.7)	%
Franchise stores and wholesale customers			49.8				45.4				9.7	%
Gross Profit			14.6				19.6				(25.5)	%
Gross Margin			18.8	%			17.2	%			1.6	pp*
Income from Operations			1.0				4.3				(76.7)	%
Net Income			0.3				2.0				(85.0)	%
Earnings Per Share			0.01				0.07				(85.7)	%
*      Notes: pp represents percentage points
(1)   The financial information presented has been retrospectively adjusted for the acquisition of Tokyo Lifestyle         Limited. See "Recent Development" for more information.
(2)   Revenue of KOL advertising business was included in online stores and others.
-  Revenue was $77.6 million, a decrease of 31.8% from $113.8 million for the same period of last year.
-  Gross profit was $14.6 million, a decrease of 25.5% from $19.6 million for the same period of last year.
-  Gross margin was 18.8%, compared with 17.2% for the same period of last year.
-  Net income was $0.3 million, compared with net income of $2.0 million for the same period of last year.
-  Basic and diluted earnings per share were $0.01, compared with $0.07 for the same period of last year.
-  As of February 28, 2023, the Company's distribution channels consisted of (i) 11 directly-operated physical stores        in Japan and seven directly-operated physical stores in Hong Kong, (ii) 21 online stores through our websites and        various e-commerce marketplaces in Japan, China, and Korea, and (iii) nine franchise stores in the U.S., four        franchise stores in Canada, one franchise store in the U.K., and approximately 102 wholesale customers in Japan        and other countries, including China, the U.S., and Canada.

First Six Months of Fiscal Year 2023 Financial Results

Revenue

Revenue decreased by $36.2 million, or 31.8%, to $77.6 million for the six months ended September 30, 2022 from $113.8 million for the same period of last year. The decrease in revenue was primarily due to decreased revenue from online stores and others and directly-operated physical stores, which was partially offset by increased revenue from franchise stores and wholesale customers.

		For the Six Months Ended September 30,
		2022												2021
($ millions)		Revenue				Cost of Revenue				Gross Margin				Revenue				Cost of Revenue				Gross Margin
Directly-operated physical    stores			5.8				4.7				19.0	%			6.0				5.0				16.7	%
Online stores and others			22.0				17.9				18.6	%			62.4				52.0				16.7 Werbung Mehr Nachrichten zur Yoshitsu Co Ltd Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 13.12.24 - ARIVA.DE Redaktion Impulse fehlen – S&P 500 fast unverändert (6.052 Pkt.) 13.12.24 - ARIVA.DE Redaktion Aktie von BASF büßt 1,10 Prozent ein (44,57 €) 13.12.24 - ARIVA.DE Redaktion Siemens-Aktie mit Kursverlusten (191,88 €) 1000 EILMELDUNG    Der nächste MicroStrategy? Der Solana-Schachzug dieses Unternehmens ist UMWERFEND weiterlesen» Anzeige wo-site-teaser-box-18830_site-teaser-box_2024-12-14_09%253A00%253A00_2024-12-16_09%253A00%253A59