Tandy Leather Factory Reports June Sales Flat Against June 2006; Revises 2007 Guidance Downward |
Retail Leathercraft Reports 17% Sales Increase and 9% Same Store
Sales Gain
FORT WORTH, Texas--(BUSINESS WIRE)--July 5, 2007--Conference Call at 10:00 am Eastern, July 6, 2007 - Tandy Leather Factory will host a conference call at 10:00 am Eastern, on July 6, 2007, which can be accessed at 800-346-7359 or 973-528-0008 using passcode 611377. A conference call replay will be available at 5:00 p.m. Eastern Time on July 6, 2007 through 12:00 a.m. Eastern Time July 20, 2007 and can be accessed at 800-332-6854 or 973-528-0005 using passcode 611377.
Tandy Leather Factory, Inc. (AMEX: TLF) reported today that sales for the month of June were $4.5 million, equal to that of June 2006. Year to date sales are up 1% to $28.0 million in the current year from $27.8 million last year.
Retail Leathercraft posted a 17% sales increase for June, with sales totaling $2.1 million compared to $1.8 million in June 2006. The 58 comparable stores posted a 9% same store sales gain for the month. The 10 stores opened in or after June 2006 added sales for the month of $183,000. Year-to-date sales for Retail Leathercraft are $12.2 million this year, a 14% increase over sales of $10.7 million for the same period of 2006. As of the end of June, the same store sales gain for the 52 comparable stores is 2% for the year.
Wholesale Leathercraft posted sales of $2.4 million for June, down 6% from June 2006 sales of $2.5 million. Within the Wholesale Leathercraft division, the wholesale stores' same store sales were down 3% for the month while the National Account group posted a June sales decline of 36%. Mid-Continent Leather Sales, a new store acquired on February 1, added sales of $55,000 for the month. For the year to date, Wholesale Leathercraft sales are $15.1 million compared to $15.8 million in 2006, a loss of 4%. The comparable wholesale stores posted a 6% sales decline for the year and National Accounts reported an 11% sales decline. Mid-Continent's year-to-date sales were $391,000.
Chief Executive Officer and President, Ron Morgan, commented, "Our consolidated sales still look weak, but I'm encouraged with the sales results at the stores. For June, the retail stores posted a 17% sales gain and a 9% same store sales gain. For the quarter, they posted a 13% sales gain and a 4% same store sales gain. The wholesale stores still need some work, but I'm encouraged that they matched last year's June sales. Our National Account group and Other segment (Roberts, Cushman) really hurt us this month, posting sales declines of 35% and 65%, respectively. Fortunately, we're not depending on either of those groups for our future growth. The sales declines of these two groups were the difference between flat sales and a mid-single digit consolidated sales gain this month."
Mr. Morgan continued, "Given that we are half way through the year, I think it is prudent to adjust our 2007 guidance downward. Our focus is and will continue to be on sales and earnings growth, as well as execution of our expansion strategy, but I think revising guidance to sales growth of 3-6% and earnings growth of 14-18% is more reasonable and achievable at this point."
Financial Outlook:
The following statements are based on TLF's current expectations as of July 5, 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 $57 to $59 million. Diluted EPS for 2007 is expected to be in the range of $0.49 to $0.51. 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 and 3 Canadian provinces, 67 Tandy Leather retail stores, located in 31 states and 4 Canadian provinces, 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
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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Jul 05, 2007 |
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