Penny Wong's questions to Tokyo Lifestyle (TKLF) leadership • H1 2022
Question
Penny Wong from Sense Gain Capital reviewed the company's balance sheet and asked for the reason behind the increase in long-term borrowings.
Answer
CEO Mei Kanayama clarified that the JPY840 million increase in long-term borrowings was allocated to warehouse construction. She explained this strategic move consolidates several warehouses, aiming to reduce long-term costs like rent, management fees, and personnel expenses, thereby improving future gross profit.