FORT WORTH, Texas--(BUSINESS WIRE)--Tandy Leather Factory, Inc. (AMEX:TLF) today announced that it intends to open a Tandy Leather Factory store in the United Kingdom in the 1st quarter of 2008. The Company is in the final stages of lease negotiations for a 10,000 square foot building located in Northampton. John McNiven, President of the Company's Canadian operation, has agreed to oversee the store opening and business development for the first year. This first store will operate as a combination wholesale and retail store. Once it is established and profitable, the Company intends to open several traditional Tandy Leather retail stores throughout the country.
The Company cited several reasons for establishing a local presence in the UK as follows:
- Sales into the UK and Europe by the Company is approximately $600,000 annually, even though the Company doesn't advertise internationally. Management believes that sales could increase significantly with a store located there and an advertising campaign directed toward the population.
- The Company believes the timing is good given that the UK economy is strong and growing. Economic indicators suggest Retail Sales for the third quarter to be 6.2% and GDP, after second quarter growth of 0.8%, is expected to be 3.3% for the third quarter.
- The Company has a highly-qualified employee in John McNiven who has agreed to oversee the UK endeavor. Mr. McNiven has 40+ years of experience in the leathercraft industry and has a proven track record establishing Leather Factory and Tandy Leather retail stores outside of the U.S.
Ron Morgan, CEO and President, commented, "We have spent a lot of time researching the UK market and believe that 2008 is the right time to embark on this endeavor. While our sales internationally are respectable, considering we're not doing anything to develop that business, we believe that a local presence and a dedicated advertising and marketing effort could increase our sales considerably. Assuming we're successful in the UK, we have good reason to believe that Tandy Leather stores could be well received in several other countries as well."
Mr. Morgan continued, "We have spent a year evaluating the potential risk versus the return. Jon Thompson, our Senior Vice President, has spent considerable time in the UK visiting potential and existing customers as well as contacting other US companies doing business in the UK. Jon's assessment of the market and our ability to be successful was influential in our decision to move forward now."
Shannon Greene, CFO and Treasurer, added, "This first store will be larger than a typical Leather Factory store and is expected to maintain approximately $250,000 in inventory because of the transit time to ship merchandise from the U.S. In addition, it will be the central warehouse, so to speak, for the retail stores that we expect to open around the country in the future."
Tandy Leather Factory, Inc., (http://www.tandyleatherfactory.com), headquartered in Fort Worth, Texas, is a specialty retailer and wholesale distributor of a broad product line including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. The Company distributes its products through its 29 Leather Factory stores, located in 19 states and 3 Canadian provinces, 72 Tandy Leather retail stores, located in 34 states and 6 Canadian provinces, and Mid-Continent Leather Sales, one store located in Oklahoma. Its common stock trades on the American Stock Exchange with the symbol "TLF".
This news release may contain forward-looking statements. All forward-looking statements made here or in other news releases issued by Tandy Leather Factory, Inc. (TLF) are based on current expectations as of the date of the release. These forward-looking statements involve risks and uncertainties that could cause the results of Tandy Leather Factory, Inc. to differ materially from management's current expectations. Many of these risks and uncertainties are detailed from time to time in TLF's reports filed with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and the most recent quarterly report on Form 10-Q. In addition, investors should be aware that there are business risks associated with opening new stores. These risks include the possibility that stores will not be economically successful or that economic conditions will impede their profitability.
Contact:
Tandy Leather Factory, Inc.
Ron Morgan, 817-496-4414
or
Shannon L Greene, 817-496-4414
sgreene@tandyleather.com
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