Japanese retailer Tokyo Lifestyle Co is plotting an expansion in North America after seeing double-digit growth in sales for the fiscal first half.

For the six months ended September 30, the company’s revenue jumped 32 per cent to US$98 million. 

Revenue from franchise stores and wholesale customers grew 53.8 per cent, supported by a 16.7 per cent increase in stock-keeping units (SKUs). 

Income from operations during the period surged 867.8 per cent to $3.2 million.

Mei Kanayama, the company’s principal executive officer, attributed the growth to its “flexible and resilient strategy” despite a challenging business environment and intensified competition.

“This included optimising our existing physical and online stores, while steadily and rapidly expanding our sales network and franchise partnerships in key markets such as Hong Kong, Southeast Asia, Europe, and North America,” Kanayama explained.

To further boost growth and strengthen its presence outside of Asia, Tokyo Lifestyle is actively exploring opportunities in North America, as well as in Europe and new business sectors. 

“Looking ahead, we remain committed to our robust strategies, including strengthening our current market footprint, closely monitoring evolving market trends and customer preferences, improving operational efficiency and profitability, optimising our distribution network and commercial outlets, and exploring new partnership opportunities,” Kanayama added.

Tokyo Lifestyle is a retailer and wholesaler of Japanese health and beauty, sundry, luxury, and electronic products. Yoshitsu bought all of the company’s shares from All Seas Global in 2022.