Tandy Leather Factory upbeat about retail
08/05/2009
Tandy Leather Factory has reported that sales for the month of April were $4.4 million, down 7% from April 2008. Year-to-date sales are down 1% to $17.8 million from $18.0 million last year.
Retail sales rose 8% to $2.2 million compared to April 2008 sales of $2.0 million. The 72 comparable stores’ sales were up 6% for the month compared to the same period last year. The two stores opened since April 2008 added $42,000.
Wholesale sales were $2.1 million for April, down 19% over April 2008.
The UK store, which opened in February 2008 as a combination retail and wholesale store, added sales of $90,000 for the month and $383,000 for the year, compared to $43,000 and $84,000 for the comparable periods in 2008, respectively.
Chief Executive Officer, Ron Morgan, commented: “We knew April was going to be tough as we were up against a strong month last year. Our retail stores are doing well as April is the fifth consecutive month of sales gains. Our wholesale stores, on the other hand, have run sales losses for 12 consecutive months now. We will continue to look for ways to attract the wholesale customer without sacrificing margin but it’s going to take some time to get them buying consistently again. Many of our wholesale customers are struggling to just keep their doors open at this point.”
Shannon Greene, chief financial officer added: “Despite our struggling wholesale division, we are in solid financial shape to be successful. Our UK store continues to generate solid sales and grow its customer base, despite all of the negative reports on the UK economy. And a 6% same-store sales gain at our retail stores is encouraging.”
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