Retail Leathercraft Reports 13% Sales Increase and 2% Same Store Sales Gain
FORT WORTH, Texas--(BUSINESS WIRE)--April 3, 2007--Tandy Leather Factory, Inc. (AMEX: TLF) reported today that sales for the month of March were $5.3 million, equal to that of March 2006. Year to date sales are up 1% to $14.5 million in the current year from $14.4 million last year.
Retail Leathercraft posted a 13% sales increase for March, with sales totaling $2.2 million compared to $1.9 million in March 2006. The 54 comparable stores posted a 2% same store sales gain for the month. The 11 stores opened in or after March 2006 added sales for the month of $237,000. Year-to-date sales for Retail Leathercraft are $6.3 million this year, a 14% increase over sales of $5.5 million for the same period of 2006. As of the end of March, the same store sales gain for the 52 comparable stores is 1% for the year.
Wholesale Leathercraft posted sales of $2.9 million for March, down 4% from March 2006 sales of $3.0 million. Within the Wholesale Leathercraft division, the wholesale stores' same store sales were down 8% for the month while the National Account group posted a March sales decline of 1%. Mid-Continent Leather Sales, a new store acquired on February 1, added sales of $85,000 for the month. For the year to date, Wholesale Leathercraft sales are $7.9 million compared to $8.2 million in 2006, a loss of 3%. The comparable wholesale stores posted a 6% sales decline for the year, while National Accounts reported a 2% sales gain. Mid-Continent's year-to-date sales were $180,000.
Chief Executive Officer and President, Ron Morgan, commented, "We've struggled all quarter with our sales. Even though we've had sales increases, they've been minimal. However, our first quarter of 2006 was a record quarter with sales gains in the 12-15% range. Those kinds of numbers are tough to beat year over year, especially considering our conservative growth strategy. The Tandy stores are doing pretty well, all things considered. The same store sales gains in last year's first quarter averaged 11%. Given the quarter we've had this year, I'm pleased with the 2% same store sales gain in March. The Leather Factory stores have struggled so far this year although again, they were running well above expectations last year at this time. I expect they'll rebound though - they always do."
Mr. Morgan continued, "We're headed into our two weaker sales quarters of the year. We're beginning to see some signs of recovery in the leather market which should help us regain some sales going forward, particularly in the Leather Factory stores. It's a fairly slow process though so I don't know that we'll see much improvement in the second quarter in this area. We're heavy into our camp season, which is looking positive compared to our lackluster performance with this customer group last year. While I don't expect that we'll make great strides in the second quarter, I think we could begin to see some strengthening in the third quarter if a couple of things go our way."
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, 67 Tandy Leather retail stores, located in 31 states and 4 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.
CONTACT: Tandy Leather Factory, Inc.
Ron Morgan, 817-496-4414
or
Shannon L. Greene, 817-496-4414
sgreene@tandyleather.com
SOURCE: Tandy Leather Factory, Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Tandy Leather Factory, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.