The Leather Factory reports record sales
American-based marketer and distributor of leather and leather-related products such as leatherworking tools, buckles and adornments for belts, leather dyes and finishes, and saddle and tack hardware, The Leather Factory, Inc. has reported record sales for the fourth quarter and full year, ended December 31, 2004.
Consolidated net income for the quarter was $739,000 compared with $585,000 for the fourth quarter of 2003. Total sales for the quarter ended December 31, 2004 increased 17.5% to $12.4 million from $10.5 million for the fourth quarter of 2003. Consolidated sales for the year ended December 31, 2004 were $46.1 million, an increase of 10.6% over total sales of $41.7 million for 2003. Consolidated net income for 2004 was $2.6 million
Sales in the Tandy Leather store chain for the fourth quarter of 2004 increased $1.4 million over the previous year's fourth quarter, representing a 49% improvement. Forty-two stores comprised Tandy Leather's retail operations on December 31, 2004, compared to twenty-six retail stores a year earlier. Six stores were added in the fourth quarter of 2004, bringing the total number of new stores added in 2004 to sixteen. For 2004, Tandy Leather sales increased $4.3 million, or 47%, over 2003.
Fourth quarter sales for the wholesale division, which includes the Leather Factory wholesale centres and national accounts group, increased $387,000 over the same quarter of 2003, a 5.3% improvement. Excluding national account sales, the wholesale centers' sales increased $435,000, or 6.8%, for the quarter. For 2004, the wholesale divisions' sales were down 0.2% for the year. Excluding national account sales, the wholesale centers reported sales gains of $1.1 million, or 4.5%, exceeding the company's guidance of 2 to 4%. Sales to national accounts were down $1.2 million for the year.
Consolidated gross profit margin for the fourth quarter was 54.7%, an improvement from 54.2% for the fourth quarter of 2003. For 2004, consolidated gross profit margin was 55.1%, an improvement over the previous year's gross profit margin of 54.4%.
