Yoshitsu Co., Ltd Announces New Partnership to Optimize International Warehouse Operations
April 07 2022 - 8:00AM
Yoshitsu Co., Ltd (“Yoshitsu” or the “Company”) (Nasdaq:
TKLF), a retailer and wholesaler of Japanese beauty and health
products, as well as other products in Japan, today announced
that it has signed a further supplement to a service agreement, as
previously supplemented (collectively, the “Agreement”) on February
25, 2022 with two cross-border E-commence, warehousing and
logistics companies, Hainan Lion Cross Border E-Commerce Company
Limited (“Hainan Lion”) and Lion (Hong Kong) Limited (“LHK”)
(collectively, the “Lion Group”), further modifying and amending
the original service agreement entered into on March 25, 2021,
between the Company and Hainan Lion, to optimize international
warehouse operations for expanding the Company’s business presence
in China.
Pursuant to the Agreement, the Company has
agreed to authorize the Lion Group as agents in relation to the
Company’s cross-border business in China. Specifically regarding
storage upgrade services under the Agreement, the Company agreed to
(i) entrust the Lion Group to act as an agent for third-party
e-commerce consolidated services, bonded warehousing services,
warehousing upgrading and expansion, including subcontracting and
warehousing management and logistics, improving the supply chain
system, and introducing smart shelves; (ii) the Lion Group agreed
to reformulate the preferential price after the storage upgrade and
charge the service fee in accordance with the new quotation table
to protect the rights and interests of the Company with effect from
March 1, 2022; and (iii) the Company agreed to pay, among other
things, the Lion Group a construction fund in advance to upgrade
the relevant services. The Agreement is effective from March 1,
2022, to February 28, 2025, and may be renewed annually thereafter
upon mutual agreement of all parties thereto.
Mr. Mei Kanayama, Principal Executive
Officer of Yoshitsu Co., Ltd, commented, “As a provider of
high-quality Japanese products, Yoshitsu is always committed to
promoting its products to the global market. Therefore, optimizing
international warehouse facilities is the key to expanding our
global business presence. Customers today look for more efficient
and flexible ways of delivery for their orders, and we expect our
partnership with the Lion Group to address the growing demand of
the customers. Their operation capacities providing bonded
warehousing bases in China enable us to deliver a large variety of
products directly to customers in China by using an intelligent
warehousing system. With the partnership, we expect to greatly
reduce our international logistics costs and lower our warehouse
service fees by JPY1 billion (approximately US$8.14 million) over
the initial three-year term of the Agreement, as estimated by the
Company, while improving product delivery efficiency in China.”
About Yoshitsu Co.,
Ltd
Headquartered in Tokyo, Japan, Yoshitsu Co., Ltd
is a retailer and wholesaler of Japanese beauty and health
products, as well as other products. The Company offers various
beauty products (including cosmetics, skin care, fragrance, and
body care products), health products (including over-the-counter
drugs, nutritional supplements, and medical supplies and devices),
and other products (including home goods, 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/irystbek/.
Forward-Looking Statements
All statements other than statements of
historical fact 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 SEC.
For more information, please
contact:
Yoshitsu Co., Ltd Investor
Relations Department Email: ir@ystbek.co.jp
Ascent Investors Relations LLC
Tina Xiao President Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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