Soft markets dampen US leathermaker’s sales in Q3
The Texan leather goods producer, Tandy Brands has announced net sales of $42.4 million for the third quarter 2001, compared with net sales of $39.7 million for the same period in fiscal 2000. Net income for the quarter was also up year-on-year, from $304,000 to $388,000.
However, net income for the nine months ended March 31 was down from 2000’s figure of $7.4 million to $5.3 million.
S.B. Jenkins, President and Chief Executive Officer, stated, "Although our third quarter earnings per share exceeded last year's results after adjusting for a one-time benefit from a license agreement termination, the company's performance during the third fiscal quarter was below our internal expectations due to a difficult retail environment. The soft economy particularly affected our department store and chain retail customers, resulting in lower than anticipated replenishment orders, causing pressure on our gross margins and increasing customer allowances. As a result, our sales mix was skewed to lower margin products targeted to mass merchants, producing lower gross profit even though our total sales rose. Unfortunately, unless the retail economy improves, we anticipate similar sales and margin pressures in our fourth quarter."
