Tokyo Lifestyle Co., Ltd. Announces Joint Venture with Crossing Limited to Expand into Trading Card Retail Business

TOKYO, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Tokyo Lifestyle Co., Ltd. (formerly known as Yoshitsu 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, as well as other products in Hong Kong, Japan, North America and the United Kingdom, today announced that the Company, through its Hong Kong subsidiary Tokyo Lifestyle Limited ("Tokyo Lifestyle HK"), has entered into a 5-year cooperation agreement (the "Agreement") on October 17, 2024, with Crossing Limited, a collectible card retailer and live-streaming distributor, to establish a joint venture (the "JV") named CROSSING CARDS CO., LTD to develop the trading card retail business. This partnership represents a significant and ambitious step forward for Tokyo Lifestyle, expanding into the trading cards market as part of its strategic diversification efforts.

Pursuant to the Agreement, Tokyo Lifestyle HK and Crossing Limited agree to invest a total of JPY 10 million (approximately USD 0.66 million) in the JV. The JV is designed to engage in retail and wholesale card operations, with Tokyo Lifestyle HK holding a 30% equity stake and Crossing Limited holding 70%. Profits will be split according to each party's shareholding ratio, with 50% of the net profits distributed to shareholders and the remaining 50% retained as development funds.

A trading card is essentially a small card typically made of cardboard or thick paper, featuring an image of a specific individual, location, or object, along with a brief description and additional text. There is a wide variety of card types. Modern trading cards can also include pieces of game-worn memorabilia, signatures, and even DNA hair samples from their subjects. While trading cards are traditionally associated with sports—particularly baseball cards, which are especially notable—there are other categories. Cards dealing with different themes, such as Pokémon, are often regarded as a separate class known as non-sports trading cards. These can feature cartoons, comic characters, TV shows, and movie stills. The Asia-Pacific region is expected to account for the largest share of the trading card market due to the growth of the population aged twenty to thirty and increasing disposable income. North America is projected to maintain its position as the second-largest market, driven by rising spending among millennials and increased investment from prominent market players, which is anticipated to propel market growth. According to Business Research Insights, the global trading card market was valued at USD 0.96 billion in 2023 and is projected to grow from USD 1 billion in 2024 to USD 1.57 billion by 2032, reflecting a compound annual growth rate (CAGR) of 5% during the forecast period. The Asia-Pacific region holds the largest share of the trading card market in 2023.

Mr. Mei Kanayama, Principal Executive Officer of Tokyo Lifestyle, commented, "We are thrilled to partner with Crossing Limited in our strategic cooperation in the trading card retail business. The JV combines the unique strengths of both companies, creating a powerful synergy in the trading card business. For Tokyo Lifestyle, this collaboration opens new market opportunities through Crossing Limited's robust online sales channels, particularly in the trading card retail space. We are confident that Crossing Limited's expertise and extensive resources in live-streaming e-commerce and online shops will enhance our brand recognition and expand our customer base. By establishing this specialized joint venture, we can explore new opportunities together, mitigate operational risks, and bolster our competitiveness in the rapidly evolving social media-driven markets."

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, and other products in Hong Kong, Japan, North America, 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), 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 registration statement and in its other filings with the U.S. Securities and Exchange Commission.

For more information, please contact:

Tokyo Lifestyle Co., Ltd.

Investor Relations Department

Email: [email protected]

Ascent Investor Relations LLC

Tina Xiao

President

Phone: +1-646-932-7242

Email: [email protected]