TKLF - Earnings call transcript Q4 2022

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Mei Kanayama

Thank you, operator and everyone, for joining Yoshitsu's Fiscal Year 2022 Earnings Conference Call today. On our call today, I will give an overview of our performance for fiscal year 2022. Then our Principal Accounting and Financial Officer, Mr.

Youichiro Haga will share the details of the company's financial review.

Lastly, we'll conduct a Q&A session to take your questions. business. pleased year, that COVID-XX although significant on are out have had We impact successful a the our Language] to we announce closed a [Foreign resurgence of

several During accomplishments. Offering fiscal in and a which XXXX on January we our new year have chapter successfully We our in Initial XXXX, completed Public NASDAQ, marked listed achieved company's history.

our business and stores by wholesale more expanded adding actively also We customers.

from prevention measures to our the we COVID-XX. addition, customers implemented strict In employees protect and

a generated increase and we and As revenue last of year. during an result, a franchise from wholesale X.X% representing million, record by XX.X% increased this of fiscal stores $XXX.X increased revenue from by from challenging X.X% customers online period. Revenues generated stores

stores execute business, initiatives, capabilities As XXXX, high-quality our Our XX solid in stores financial in of the operated results eight and products to in the XX, other demonstrated customers franchise team four operated to company's in to and our XX XXX physical US, around franchise one the our stores Japan to grow customers directly since stores, and Kong, of Hong August dedication efforts our Japan, countries. the ability Canada, store service online physical wholesale provide had in in stores unparalleled strategic we and directly UK and five

We continue America. warehouse to North expand our in business broadly international and optimize operations our

providing and products strategic brand company. our We continued our you the new these business and options confident products on our support will are more making. believe your diversifying of service focused Thank flexibility customers. improve resilience awareness, customers on to providing development existing to relationship we and about attract We're the for focus initiative will with model and high-quality initiatives the for We and We customers. remain invaluable strengthen customers. our our

Mr. Financial Next, Accounting I to the Officer, call our turn and will over Principal

please behalf Mr. the Haga review fiscal management year for on for Haga, of go closer financials ahead. XXXX of Youichiro a team. our

Youichiro Haga

Thank fiscal will the morning, On of everyone. of you, Good XXXX. behalf team, year management Mr. overview I refinancial Kanayama. provide

Our year affected various business and uncertainties during fiscal has by been challenges XXXX.

of stores business the by business to year of still during emergency fiscal revenue Our April hours with physical from business fiscal and strong directly company's the XXXX hours was wholesale XXXX. $XX.X stores decrease was per income resumed e-commerce franchise the revenue expenses, generated due and been stores growing year and online the bonus the one was May benefit X.X% to XXXX. of net fundamentals. has increased to all our due the the recent a popular physical efficiency was year. government The overseas improving stores fiscal fiscal to in stores, capital XXXX. logistic XXXX. uncertainties for for XXXX, million wholesale working year COVID-XX XXXX, on been physical to increase of expenses for online up declared basis company's hours directly X.X% increase by was weekday. In popularity closed shopping, we from and capacity, The that million last company's revenue and late and the to the by of state regions were Total added most XXXX. by was million from in from fiscal affected or from Operating down fees, stores in stores XXXX stores storage The for XX.X% Overall franchise XX.X% two physical After pandemic. e-commerce store supply year customers, XXXX. the $XXX.X order increase operated by most various its record Revenue $XX.X margins company fiscal to Almost gross XXXX. physical negatively sales the for online company's wholesale chain down due by of to stores diluted per and in during opening by million with by $X.XX was company's new chain fiscal With to year professional XXXX, June employee reputable physical consulting the store Japanese to from its earnings years. mainly and commissions, million profit Revenue transaction of reopened Basic the multiple from Sundays year to company's opening The management. $XXX.X on July from third-party new to for Net their up expanding seize, business on Saturdays given while which industry store decreased customers, temporarily XXXX. and in increased share shortened XX.XX% the reduced year XXXX. fiscal Gross the the closed expenses April for and rapidly stores. of of was to everyday. fiscal fiscal X.X% by were operated opportunities, by end The offset has in stores increase for stores $X.X to period After in the remained XXXX XXXX. and network marketplaces physical response the the million five but million million online $XXX.X $XXX.X same $XX.X due during revenue customers and storage expanded shipping fiscal Revenue payroll supply Revenue XXXX. and operated increased were year for oversees fiscal year partially of directly franchise by to year the expenses. service challenges decrease affected inventory slightly year improvement for fiscal company year the XX.X%

of of million. $XX.X company cash XXXX, XX, the March As had

XXXX balance for XX.X% company's the $XX.X by substantially parties remaining million, and As The of to Approximately provide related third operations had balances fully capital XX, receivable collect have from as XX, XX, XXXX. $X.X due been working of March million accounts the corrected respectively. company and and cash XXXX, is March of use of September expected and the if receivables balance necessary. parties such the collected available as

As which $XX.X current can demand in XX, its the company company XXXX, March products. based of of trend the inventories sold million, its believes merchandise of the quickly be has on analysis for

in Net e-commerce and cash XXXX, eye activities by in million. year activities feel fiscal used potential to grow, We and revenue were we and the in XX% provided low our business $X.X expenses achieving might For increase overseas year on about approximately confident financing $XX.X and cash $XX.X our XXXX. to very operating cost and million. but net business see used costs. activities in proportion expect was facility-related advertising cash in high investing million. our was fiscal remain transportation We Net positive

the to I the any like over turn for Now, would discussion operator questions. to

Operator

you. Thank

question-and-answer now first ahead. will question session. [ph] Company. Shang from Please Lucas Instructions] begin go [Operator the comes We Today's with Johnson

Unidentified Analyst

sharing Hi. Thank you for information. the

Mr. in the that the North Kanayama think international optimize the warehouse mentioned I to plans company remarks, in America. operations

the So company what are the approaches to achieve this? for

Mei Kanayama

build with By Canada, overseas interest for established very Currently, warehouses. plan several warehouses up [Foreign places. States, to in overseas large negotiating and United we're Language] we business. warehouses, Thank the partners other strategic the base. integrated customer in potential other our setting your regarding much as for to also We that expected we wholesalers, expand It which stores our worth is can expansion. made in our Hong quickly supply well mentioning the goods is Kong business arrangement to have as franchise same you

Unidentified Analyst

for has second And for is, your you reopened requirements. Japan answer. question tourism my since some quarantine Thank and

And stores? the what to the you about next So, thinking outlook see you do business physical the expect year? how of are fiscal the for

Mei Kanayama

and at is stores will streaming In Language] our about we our the surely [Foreign popular Yes. recovery working we Recently, attract of we now. sales believe pick more the up physical excited income business, which trend developed tourism lead meantime, right in a are We're customers. to the Japan, gradually.

We leveraging enhance also lead the to the about shared streaming merchandise teams a and and stores Internet cosmetics more and of up do some at live customers We streaming. our space and brand knowledge. power attract choosing aim awareness by set our to

after we it revenues On that the And our and effective some with generated including we measures, us physical stores make currently to working on to customers. pandemic. have this, which reassessed In instead experiencing attracting in business challenge at activities, on. have necessary streams hand, for are we through need streets our model various -- been we order generate which of current necessary achieve to realize We tourists, the COVID-XX in overseas is relying the change. hosted other promotional associated some solely taken also adding have billboards

you. impression our is to have the efforts, build from trust to goal good customers. popularity these our our Thank With brand and gain a consistently

Operator

you. Thank

Lee David from comes go Private Please question a next Investor. Our [ph], ahead.

Unidentified Analyst

noticed saw that released Hi, released to into the company's Malaysia press I the plans company the market. enter everyone. I and a

planned plan further has into Thank company or Asian plans the to you. as Southeast the there regions enter. are any to company So markets,

Mei Kanayama

future expand to channels to countries distribution planning Southeast or some set in It in in also our of market, we Asia Australia. to New you. partner partners Zealand business regions Southeast blueprint the local in in preparation the broad high-profile to to starting our are general as with stores Asia. up We're market further and specific it is in is Thank business launching the new in

Operator

you. Thank

go from – sorry [ph] question Kathleen question comes Private [Operator a Please today I'm ahead. next next Our our Instructions] Investor. Long today

Unidentified Analyst

the plan and Hi products? company does company product offering, healthy current product lines to expand Given besides the so beauty your

Mei Kanayama

enrich working are our product We to Language] hard [Foreign offering.

been offer. currently time, of At value, lines also the working We sole toys are not products. and label offer the have high private with development to trendy the on retailer to able same rail our which competitors we our are

baby, So products gel, mask products and bags, as far, shower flask, for shampoo, natural shower face water. have disposable such thermos we developed grocery

fields also making with and exploring are progress. in We some virus innovation good

new In to the with recently team to a years experienced more field with holding us you. experience XX of PhD empower device R&D develop degree products. joined medical Thank addition, an expert in

Unidentified Analyst

you have Thank more I sharing. question. one for

to elaborate So improve the initiatives you please could profitability? the company's

Mei Kanayama

will costs, brand fiscal awareness, enhance optimize XXXX, negative to reduced the Language] marketing. operations and diversify of we refined mitigate year During continue impact to shipping [Foreign management, product the COVID-XX, our

Specifically, continuing our advertising Facebook. on street advertising [Indiscernible] Internet on not such to and sides as more we and also but own campaigns, our in only banners, invested build platforms YouTube our channels

is respond products which and popular importing the market, number By products We purchase status stores, also warehouse accurately and to inventory leaving costs overseas the a and products physical can and in and purchase shipping of quickly unnecessary the also into entering of of goods. the space, to distribution reduce Japanese we and the branding. of expand management warehouse way quickly system grasp more plan

run to recruitment a and we aim team We Japan job have with the continue to more better to agents well-known business more contracted form effectively. In a employees. experienced in recruiting addition, experienced

addition, and are market diversifying channels our we development. In sales

we company. difficulties is and is are the We such but of on are Thank fiscal is facing A one EC the say caused of a is can I in and company for franchise Based Asia. also this has the worth our Opening Yoshitsu growth developing regions opportunity working on reform. can customers. At of epidemic, still lot by challenge next we that Southeast and such plans, profitable as UK and expanding company many warehouses above North many America company an wholesaler a that investors' difficulties the present, and in countries you. in trust. year. management channel confidently expect new also and overcome

Operator

over let questions Relations to Ascent further me remarks. turn no Showing the call company's closing from Investor IR the you. for representative Thank

Tina Xiao

very joining for call. this conference much Thank you

your you at any look soon Relations Investor Management as support as counsel If interest possible. questions IR appreciate questions, will tina.xiao@ascent-ir.com. us through contact speaking reach e-mail ir@ystbek.co.jp Yoshitsu with time. again your next and or our please to Ascent have and forward in you to respond We at

Operator

earnings the concludes attending Thank XXXX today, call. you This for you our call listening Goodbye. thank year conference in. and again Yoshitsu’s we all for fiscal

Yoshitsu (TKLF) 15 Aug 222022 Q4 Earnings call transcript