Tokyo, Japan, Dec. 01, 2025 (GLOBE NEWSWIRE) -- Tokyo Lifestyle Co., Ltd. ("Tokyo Lifestyle" or the "Company") (NASDAQ:TKLF), a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys as well as other products in Hong Kong, Japan, North America, Thailand, Vietnam and the United Kingdom, today announced that its Hong Kong subsidiary, Tokyo Lifestyle Limited ("TKLF HK"), entered into an investment and operational target agreement on November 18, 2025 (the "Agreement") with a Hong Kong-based private investor (the "Investor") to expand and develop the Company's directly-operated store network in Hong Kong and Australia.

The collaboration is expected to strengthen Tokyo Lifestyle's strategic presence in Hong Kong and Australia, accelerate the rollout of new directly operated stores, and enhance the Company's regional operational capabilities.

Pursuant to the Agreement, the Investor will commit HKD 10 million (approximately US$1.28 million, the "Initial Investment") by December 31, 2025, to fund the expansion and operations of TKLF HK's physical retail stores in Hong Kong and Australia. The investment will be primarily allocated to store leasing, fit-out, inventory procurement, staffing, marketing and other related operating expenses. The Investor will oversee strategic planning, site selection, store build-out, team recruitment, fund supervision and periodic board reporting.

As consideration for the Initial Investment, TKLF HK agrees to appoint the Investor as a director of TKLF HK for a two-year term commencing on the Agreement's effective date. In addition, the Investor has agreed to consider providing additional funding should the Company require further investment following the completion of the Initial Investment, with the amount and timing to be determined through mutual negotiation.

The Agreement sets an operational target of opening no fewer than 15 directly operated stores across Hong Kong and Australia within two years. If the target cannot be met due to force majeure or major business adjustments, the parties will negotiate an appropriate extension or modification.

Mr. Mei Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented: "We are delighted to welcome this strategic partner as we continue to strengthen our footprint in Hong Kong and Australia, two core markets in our global growth strategy. With a long-term vision in mind, we are pleased to bring in an additional partner to reinforce our regional presence and accelerate future expansion. This collaboration also serves as an important complement to our broader global expansion blueprint, particularly by diversifying our cooperation models and optimizing resource allocation to support growth beyond Asian markets. Looking ahead, we may adopt multiple approaches to further accelerate our business expansion and market presence in Europe and the United States, which remain key pillars of our worldwide strategy. We believe this collaboration marks a significant milestone in our internationalization efforts, enhancing market penetration and brand influence while laying a solid foundation for future revenue growth."

About Tokyo Lifestyle Co., Ltd.

Headquartered in Tokyo, Japan, Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu Co., Ltd) is a retailer and wholesaler of Japanese beauty and health products, sundry products, luxury products, electronic products, collectible cards, trendy toys, and other products in Hong Kong, Japan, North America, Thailand, Vietnam and the United Kingdom. The Company offers various beauty products (including cosmetics, skincare, fragrance, and body care products), health products (including over-the-counter drugs, nutritional supplements, and medical supplies and devices), sundry products (including home goods), collectible cards and trendy toys (including Pokémon cards, BE@RBRICK and other trendy products) and other products (including food and alcoholic beverages). The Company currently sells its products through directly-operated physical stores, through online stores, and to franchise stores and wholesale customers. For more information, please visit the Company's website at https://www.ystbek.co.jp/irlibrary/.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's filings with the U.S. Securities and Exchange Commission.

For more information, please contact:

Tokyo Lifestyle Co., Ltd.

Investor Relations Department

Email: ir@ystbek.co.jp

Ascent Investor Relations LLC

Tina Xiao

President

Phone: 1-646-932-7242

Email: investors@ascent-ir.com

Tokyo Lifestyle Announces Strategic Investment Partnership to Accelerate Expansion in Hong Kong and Australia