Tokyo Lifestyle shares surge 12.78% after-hours following 94.3% YoY revenue growth and 29.8% gross profit increase in first half of fiscal 2026.

Tokyo Lifestyle surged 12.78% in after-hours trading following the release of its first-half fiscal 2026 earnings report, which revealed a 94.3% year-over-year revenue increase to $190.4 million and a 29.8% rise in gross profit to $15.8 million. The results were driven by robust growth in franchise and wholesale sales, expanded physical store operations in Hong Kong, the U.S., and Canada, and a 59.4% increase in total SKUs. Management attributed the performance to strategic expansion, enhanced product offerings in high-margin categories like beauty and luxury goods, and effective promotional initiatives. Despite a net loss due to tax adjustments and foreign exchange impacts, the company emphasized stable gross margins and disciplined cost management, signaling confidence in its long-term growth trajectory. The strong earnings and expansion optimism likely fueled the sharp after-hours rally.