Retail Up 8%; Wholesale Down 19%
Tandy Leather Factory, Inc. (AMEX: TLF) reported today that sales for
the month of April were $4.4 million, down 7% from that of April 2008.
Year to date sales are down 1% to $17.8 million in the current year from
$18.0 million last year.
Retail Leathercraft's sales rose 8% to $2.2 million compared to April
2008 sales of $2.0 million. The 72 comparable stores' sales were up 6%
for the month compared to the same period last year. The 2 stores opened
since
April 2008 added April sales of $42,000. Year-to-date sales for Retail
Leathercraft are $8.8 million this year, a 6% increase over sales of
$8.3 million for the same period of 2008. As of the end of April, the 72
comparable stores' sales were up 3% compared to sales reported for the
same period in 2008.
Wholesale Leathercraft posted sales of $2.1 million for April, down 19%
over April 2008 sales of $2.6 million. Within the Wholesale Leathercraft
division, the wholesale centers' sales were down 13% for the month while
the National Account group's sales were down 46% against April 2008. For
the year to date, Wholesale Leathercraft sales are $8.4 million compared
to $9.3 million in 2008, down 10%.
The UK store, which opened in February 2008 as a combination retail and
wholesale store, added sales of $90,000 for the month and $383,000 for
the year, compared to $43,000 and $84,000 for the comparable periods in
2008, respectively.
Chief Executive Officer, Ron Morgan, commented, "We knew April was going
to be tough as we were up against a strong month last year. Our retail
stores are doing well as April is the fifth consecutive month of sales
gains. Our wholesale stores, on the other hand, have run sales losses
for twelve consecutive months now. We will continue to look for ways to
attract the wholesale customer without sacrificing margin but it's going
to take some time to get them buying consistently again. Many of our
wholesale customers are struggling to just keep their doors open at this
point."
Shannon L. Greene, Chief Financial Officer added, "Despite our
struggling Wholesale division, we are in solid financial shape to be
successful. Our UK store continues to generate solid sales and grow its
customer base, despite all of the negative reports on the UK economy.
And a 6% same store sales gain at our retail stores is encouraging. 2009
will have its shares of challenges from a sales perspective, but we
believe we are financially positioned to do well in spite of those
challenges."
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, 74 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 statements regarding future events,
occurrences, circumstances, activities, performance, outcomes and
results that are considered "forward-looking statements" as defined in
the Private Securities Litigation Reform Act of 1995. Actual results and
events may differ from those projected as a result of certain risks and
uncertainties. These risks and uncertainties include but are not limited
to: changes in general economic conditions, negative trends in general
consumer-spending levels, failure to realize the anticipated benefits of
opening retail stores; availability of hides and leathers and resultant
price fluctuations; change in customer preferences for our product, and
other factors disclosed in our filings with the Securities and Exchange
Commission.These forward-looking statements are made only as of
the date hereof, and except as required by law, we do not intend to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
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 |