Rising operating costs affect results at Tandy Leather
US specialty retailer and wholesale distributor of leather, leatherworking tools, dyes and finishes, and saddle and tack hardware Tandy Leather Factory, Inc. is expecting to report third quarter 2007 net income of approximately $172,000, a massive 80% decline compared with the same period in the prior year.
The company attributed the decline to a number of factors including a fall in gross profit margins and $1 million higher operating expenses due to accelerated depreciation on the leasehold improvements at its current corporate headquarters as well as on the building for its new corporate offices which it purchased in July.
Commenting on the situation, CEO and president, Ron Morgan, said, “I am extremely disappointed in our performance again this quarter and wish I had a better explanation than 'we spent too much.' When sales are flat, expenses must be reduced and we were not successful in accomplishing that goal in the third quarter.”
