FORT WORTH, Texas--(BUSINESS WIRE)--Tandy Leather Factory, Inc. (AMEX: TLF) reported today that sales for the month of November were $4.9 million, up 2% from November 2006 sales of $4.8 million. Year to date sales are up 1% to $50.7 million in the current year from $50.0 million last year.
Retail Leathercraft posted an 11% sales increase for November, with sales totaling $2.2 million compared to $2.0 million in November 2006. The 62 comparable stores posted a 2% same store sales gain for the month. The 10 stores opened after October 2006 added sales for the month of $189,000. Year-to-date sales for Retail Leathercraft are $22.4 million this year, a 12% increase over sales of $20.0 million for the same period of 2006. As of the end of November, the same store sales gain for the 52 comparable stores is 2% for the year.
Wholesale Leathercraft posted sales of $2.6 million for November, down 2% from November 2006 sales of $2.7 million. Within the Wholesale Leathercraft division, the wholesale stores' same store sales were down 6% for the month while the National Account group posted a November sales gain of 7%. Mid-Continent Leather Sales added sales of $60,000 for the month. For the year to date, Wholesale Leathercraft sales are $27.3 million compared to $28.1 million in 2006, a 3% decline. The comparable wholesale stores posted a 3% sales decline for the year and National Accounts reported a 14% sales decline. Mid-Continent's year-to-date sales were $668,000.
Chief Executive Officer and President, Ron Morgan, commented, "I would have liked stronger sales from the wholesale stores, but am fairly pleased with our November sales results given the current retail environment overall. Our After-Thanksgiving sale was a success as we almost doubled our sales for those two days (Friday and Saturday) compared to the same days last year. That certainly helped us make the month. Our retail stores are holding their own with a modest same store sales gain, but a gain nonetheless."
Financial Outlook:
The following statements are based on TLF's current expectations as of December 6, 2007. These statements are forward-looking statements and should be read in conjunction with the cautionary information about these statements that appears below.
The Company estimates 2008 consolidated net sales and diluted EPS to be $56 million and $0.28, respectively, equal to that estimated for 2007. Average diluted shares outstanding in 2008 are estimated to be approximately 11.1 million shares. The Company assumes an effective tax rate for the year between 35% and 37%. During 2008, the Company plans to open one store in the United Kingdom and 4 retail stores in North America.
Chief Financial Officer and Treasurer, Shannon Greene, commented, "Given the continued weakness expected in the retail environment overall, I think our expectations for 2008 are reasonable. We're assuming flat sales at the wholesale stores and mid-single digit sales growth from the retail stores. The sales decline resulting from the loss of Walmart as a customer of our National Account group will be partially offset by new sales expected at the UK store. We've identified almost $1 million of new or unique expenses to be incurred in 2008 specifically attributable to the opening and operation of the UK store and the relocation of our corporate offices. However, we believe we will offset those expenses with the cost reductions we're already working on."
Ms. Greene continued, "The corporate relocation expenses and many of the UK store set up expenses will be incurred in the first quarter of 2008. As a result, we expect our 1st quarter 2008 earnings to be less than those of the 1st quarter of 2007. However, we expect our 2nd and 3rd quarter results to be better than that of 2007, maintaining stability in earnings on an annual basis."
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 32 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. 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. Investors are reminded that past performance may not be predictive of future results.