Tandy Leather faces challenging quarter
US based retailer Tandy Leather Factory announced its financial results for the third fiscal quarter of 2024, showing a slight decline in revenue and profitability. The company reported revenues of $17.4 million, a decrease of 1.1% from $17.5 million in the same quarter of 2023. Gross margins fell to 57.8%, down from 62.4% last year, resulting in a gross profit of $10.0 million, compared to $10.9 million in Q3 2023.
The company posted an operating loss of $0.3 million, a decline from the operating income of $0.9 million in the same period last year. The net loss for the quarter was $0.1 million, down from a net income of $0.6 million in 2023. Operating expenses increased by 2.3%, largely due to inflationary pressures, particularly in employment costs.
Despite these challenges, Tandy Leather Factory ended the quarter with $10.1 million in cash and cash equivalents, up from $8.6 million a year earlier. Inventory stood at $38.1 million, slightly up from $38.0 million at the end of 2023.
CEO Janet Carr noted that although September sales were strong, overall customer spending on discretionary items remained weak, impacting traffic and financial performance.
