Tandy Leather Factory, Inc. Reports December Sales Up 3% - Meets 2006 Revenue Guidance |
Retail Stores Report 21% Sales Gain; Same Store Sales up 5%
FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 4, 2007--Tandy Leather Factory, Inc. (AMEX:TLF) reported today that sales for the month of December were $5.2 million, an increase of 3% from $5.0 million last year. Year to date sales are up 9% to $55.2 million in the current year from $50.7 million last year.
Retail Leathercraft posted a 21% sales increase for December, with sales totaling $2.6 million compared to $2.1 million in December 2005. The 50 comparable stores posted a 5% same store sales gain for December. The 12 stores opened in 2006 added December sales of $348,000. Sales for Retail Leathercraft totaled $22.5 million for 2006, a 25% increase over sales of $18.0 million for 2005. The year's same store sales gain for the 42 comparable stores was 6%.
Wholesale Leathercraft posted sales of $2.5 million for December, down 10% from $2.8 million in December 2005. Within the Wholesale Leathercraft division, the wholesale centers reported a sales loss of 3% while the National Account group posted a December sales loss of 50%. For the year, Wholesale Leathercraft sales were $31.0 million, the same as in 2005. The wholesale centers achieved a 2.4% sales gain for the year while the National Account group ended the year with a 4% sales decline.
Chief Executive Officer and President, Ron Morgan commented, "We reached the 2006 revenue target we had announced and believe we will make our earnings estimate of 43 to 44 cents for the year as well. I am pleased with the performance of our Tandy Leather stores, reporting a 22% sales gain for the quarter. Tandy's same store sales gain for the quarter was almost 6%. Several of our wholesale centers have really struggled this quarter due to customer resistance to price increases in some of our leathers. Even so, our wholesale centers ended the year with a 2.4% sales gain, which falls in line with our expectations. Our National Account group had a poor December, but the majority of the loss is due to the timing of orders this year compared to last year. One of the accounts in particular is in the re-set process a month earlier than last year. We should see a stronger performance from this group in January."
Tandy Leather Factory, Inc., headquartered in Fort Worth, Texas, is a specialty retailer and wholesale distributor of a broad product line including leather, leatherworking tools, belt buckles and adornments, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. The Company distributes its products as The Leather Factory through its wholesale distribution centers and as Tandy Leather Company through its retail stores. 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., Fort Worth
Ron Morgan, 817-496-4414
or
Shannon L. Greene, sgreene@leatherfactory.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.
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Jan 04, 2007 |
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