Tandy posts higher Q2 and H1 profits
Tandy Leather Factory has reported improved financial
results for the second quarter ended June 30.
Net income for the quarter was $1.5 million compared with
consolidated net income of $1.1 million for the second quarter of 2011, an
increase of 43%. Total sales for the quarter were $16.9 million, up 6% from
$15.9 million.
Sales for the six months ended June 30 were $35.1
million, up 10% from $31.8 million during the same period in 2011. Net
income was up 40% to $3.1 million from $2.2 million.
Chief financial officer and treasurer, Shannon Greene,
said: "We have significantly increased our investment in inventory this
year, although it is not as severe as it first appears.
"Our stores' inventories are up approximately 30% from
the end of last year in order to eliminate lost sales due to a lack of product
availability. Our central warehouse inventory is up 80% during that same
time.
"However, we ended 2011 with our warehouse being out of
most leathers, so the increase this year is simply to get it back up to a
reasonable level to support the stores.
"Further, with the positive sales trends at the stores,
it is important that we have sufficient stock to carry us through the rest of
the year."
