Retail Up 7%; Wholesale Down 7%
Tandy Leather Factory, Inc. (AMEX: TLF) reported today that sales for
the month of June were $4.5 million, the same as that of June 2008. Year
to date sales are down 2% to $26.6 million in the current year from
$27.1 million last year.
Retail Leathercraft's sales rose 7% to $2.3 million compared to June
2008 sales of $2.1 million. The 72 comparable stores' sales were up 5%
for the month compared to the same period last year. The 3 stores opened
since June 2008 added June sales of $50,000. Year-to-date sales for
Retail Leathercraft are $13.2 million this year, a 6% increase over
sales of $12.5 million for the same period of 2008. As of the end of
June, the 72 comparable stores' sales were up 4% compared to sales
reported for the same period in 2008.
Wholesale Leathercraft posted sales of $2.1 million for June, down 7%
over June 2008 sales of $2.3 million. Within the Wholesale Leathercraft
division, the wholesale centers' sales were down 7% for the month while
the National Account group's sales were down 4% against June 2008. For
the year to date, Wholesale Leathercraft sales are $12.4 million
compared to $13.9 million in 2008, down 11%.
The UK store, which opened in February 2008 as a combination retail and
wholesale store, added sales of $122,000 for the month and $603,000 for
the year, compared to $94,000 and $237,000 for the comparable periods in
2008, respectively.
Chief Executive Officer and President, Jon Thompson, commented, "Our
June sales held true to the trend with gains in retail and declines in
wholesale. Until the small wholesale customers gain some confidence that
we have seen the worst economically and that they are going to survive,
our wholesale business is going to continue to struggle. Unfortunately,
I am not seeing anything that indicates our economy is really turning
around yet."
Shannon L. Greene, Chief Financial Officer, added, "For the second
quarter, our sales were down 4%. Retail was up almost 7% and its same
stores sales were up 4%. Wholesale was down 15%. The strength in retail
sales should support stronger gross profit margins. And with the
progress we have made keeping our operating expenses in line, I am
fairly confident that we will meet or beat last year's second quarter
earnings."
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, 75 Tandy Leather retail stores,
located in 36 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 NYSE Amex 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 |