Retail Leathercraft Down 1%, Wholesale Leathercraft Down 11%
Tandy Leather Factory, Inc. (AMEX: TLF) reported today that sales for
the month of September were $4.0 million, down 4% from September 2007
sales of $4.2 million. Year-to-date sales are down 4% at $39.4 million
in the current year from $40.9 million last year. Tandy's
new UK store, which opened in mid-February, reported September sales of
$115,000 and $560,000 year-to-date.
Retail Leathercraft posted a 1% sales decline for September, with sales
totaling $1.9 million, down $22,000 from September 2007 sales. The 70
comparable stores posted a 4% same store sales loss for the month. The 3
stores opened in or after September 2007 added sales for the month of
$59,000. Year-to-date sales for Retail Leathercraft are $18.3 million
this year, a 2% increase over year-to-date 2007 sales of $18.0 million.
As of the end of September, same store sales were down 3% for the year.
Wholesale Leathercraft posted sales of $2.0 million for September, down
11% from September 2007 sales of $2.2 million. Within the Wholesale
Leathercraft division, the wholesale stores'
same store sales were down 11% for the month while the National Account
group posted a September sales decline of 7%. For the year to date,
Wholesale Leathercraft sales are $19.9 million compared to $22.1 million
in 2007, a loss of 10%. The comparable wholesale stores posted a 10%
sales decline for the year, while National Accounts reported a 6% sales
loss. Mid-Continent's year-to-date sales were
$434,000, down 22% from the same period in 2007.
Chief Executive Officer, Ron Morgan, commented, "With
the continued instability in the economy, we, like many of the other
retailers out there, could not convince customers to spend their money
with us as evidenced by our September sales. However, we are confident
in the underlying strength of our business as we believe our weak sales
are not a reflection of our product offerings and customer interest, but
simply a by-product of the overall economic environment. We will
continue to manage our business conservatively with tight expense
control in order to not only survive but to be successful during this
difficult business cycle. Finally, while we recognize that wholesale
side of our business is showing the greatest weakness right now, if
there is a silver lining there, it is that it will become a smaller
contributor to our sales as our Retail Leathercraft division continues
to grow and expand in the number of stores."
Shannon Greene, Chief Financial Officer and Treasurer, added, "While
our sales aren't where we want them, our cash
continues its positive trend. We increased our cash position during the
third quarter to more than $10 million, which is remarkable considering
that our third quarter historically uses cash. We are maintaining a
tight control of inventory and operating expenses given that we are
expecting a challenging Christmas sales season. Third quarter sales were
down 4% compared to the third quarter of 2007. Retail Leathercraft's
sales were flat for the quarter, while Wholesale Leathercraft's
sales were down 14%. The retail same store sales were down 3% for the
quarter."
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 35 states and 5 Canadian provinces, one combination
wholesale/retail store located in the United Kingdom, and Mid-Continent
Leather Sales, one store located in Oklahoma. Its common stock trades on
the American Stock Exchange with the symbol "TLF". To be included on
Tandy Leather Factory's email distribution
list, go to http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
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.
Tandy Leather Factory, Inc. Shannon L. Greene, 817-872-3200 sgreene@tandyleather.com or Magellan
Fin, LLC Mark Gilbert, 317-867-2839 MGilbert@MagellanFin.com |