Retail Up 5%; Wholesale Down 19%
Tandy Leather Factory, Inc. (AMEX: TLF) reported today that sales for
the month of May were $4.3 million, down 6% from that of May 2008.
Year-to-date sales are down 2% to $22.1 million in the current year from
$22.6 million last year.
Retail Leathercraft's sales rose 5% to $2.1 million compared to May 2008
sales of $2.0 million. The 72 comparable stores' sales were up 3% for
the month compared to the same period last year. The 2 stores opened
since May 2008 added May sales of $47,000. Year-to-date sales for Retail
Leathercraft are $10.9 million this year, a 5% increase over sales of
$10.4 million for the same period of 2008. As of the end of May, the 72
comparable stores' sales were up 3% compared to sales reported for the
same period in 2008.
Wholesale Leathercraft posted sales of $1.9 million for May, down 19%
over May 2008 sales of $2.4 million. Within the Wholesale Leathercraft
division, the wholesale centers' sales were down 16% for the month while
the National Account group's sales were down 36% against May 2008. For
the year to date, Wholesale Leathercraft sales are $10.3 million
compared to $11.7 million in 2008, down 12%.
The UK store, which opened in February 2008 as a combination retail and
wholesale store, added sales of $98,000 for the month and $481,000 for
the year, compared to $58,000 and $143,000 for the comparable periods in
2008, respectively.
Chief Executive Officer, Ron Morgan, commented, "May is a continuation
of the same story – retail is trending positive; wholesale is trending
negative. We had one less sales day this month versus May 2008, but
based on the average sales per day, we still would have had a sales loss
of approximately 3% even if the selling days were equal. We lost
approximately 150 basis points on the currency fluctuation of our
Canadian and UK sales as well. Regardless, while our retail business is
looking pretty good, our wholesale business continues to significantly
impact our top line with its trend of sales declines."
Shannon L. Greene, Chief Financial Officer added, "While it is difficult
to make predictions with any degree of certainty in the current economic
environment, I am pleased with the improvement in our operating
efficiency overall. Despite the lower sales so far this year, we are
generating higher profits, due primarily to operating expense
reductions. As a result, we feel fairly comfortable in predicting an
improvement in earnings this year over last."
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 |