Tandy Leather Factory, Inc. Reports 1% Sales Increase in February |
12% Sales Gain at the Retail Stores; Revises 2007 Guidance
Downward
FORT WORTH, Texas--(BUSINESS WIRE)--March 1, 2007--Tandy Leather Factory, Inc. (AMEX:TLF) reported today that sales for the month of February were $4.6 million, an increase of 1% from $4.6 million last year. Year to date sales are up 1% to $9.2 in the current year from $9.1 million last year.
Retail Leathercraft posted a 12% sales increase for February, with sales totaling $2.0 million compared to $1.8 million in February 2006. The 53 comparable stores' sales were flat for the month compared to the same period last year. The 11 stores opened since January 2006 added February sales of $230,000. Year-to-date sales for Retail Leathercraft are $4.1 million this year, a 14% increase over sales of $3.6 million for the same period of 2006. As of the end of February, the 52 comparable stores' sales equaled that of the sales reported for the same period in 2006.
Wholesale Leathercraft posted sales of $2.6 million for February, a 4% decline from February 2006 sales of $2.7 million. Within the Wholesale Leathercraft division, the 29 wholesale centers' sales were down 9% for the month while the National Account group posted a February sales gain of 1%. The new store, operating as Mid-Continent Leather Sales which was acquired on January 31, 2007, reported sales of $96,000. For the year to date, Wholesale Leathercraft sales are $5.0 million to compared to $5.2 million in 2006.
Chief Executive Officer and President, Ron Morgan, commented, "Our February sales results are frustrating. We're doing all the right things, but we don't seem to be turning those efforts into sales. Our customer list is growing, we're teaching more classes and doing more demonstrations, and we're selling out of our new products as fast as we receive them. But at the end of the day, we expected better sales results and didn't get them. While I don't believe this trend will continue, our revenue is $500,000 below internal expectations for the first two months of the year. Therefore, I think it is prudent to adjust our 2007 guidance downward slightly."
Financial Outlook:
The following statements are based on TLF's current expectations as of March 1, 2007. These statements are forward-looking statements and should be read in conjunction with the cautionary information about these statements that appears below.
The Company plans to open a total of 12 Tandy Leather retail stores in 2007 and estimates consolidated net sales for 2007 will be in the range of $59 to $61 million. Diluted EPS for 2007 is expected to be in the range of $0.53 to $0.56. Average diluted shares outstanding in 2007 are estimated to be approximately 11 million shares. The Company assumes an effective tax rate for the year between 35% and 36%.
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, 64 Tandy Leather retail stores, located in 31 states, and Mid-Continent Leather Sales, one store located in Oklahoma. 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.
Ron Morgan, 817-496-4414
rcmorgan@tandyleather.com
or
Shannon L. Greene, 817-496-4414
sgreene@tandyleather.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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Mar 01, 2007 |
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