Tandy Leather Factory has reported that sales for the month of March were $4.4 million, down 17% from March 2007. Year-to-date sales are down 9%. The company´s problems are coming from its US operation where retail sales are down 9% and wholesale business by as much as 25%.
There was better news, however, from Tandy´s new UK store, which opened in mid-February; it reported March sales of $30,000.
Chief executive officer and president, Ron Morgan, commented: “In light of the difficult retail environment and the uncertainties in the US economy overall, we are not really surprised with our March sales results. While there aren´t too many good things to say about our sales in general, there are a few bright spots. Our Canadian stores continue to achieve sales gains, which leads me to believe that their economy isn´t struggling as much as the US economy yet. Our UK store's sales are encouraging, especially when you consider that we have not yet started a local advertising programme there.”
Mr Morgan said it was too early to tell, but that he felt the timing of Tandy´s international expansion would prove to be a good decision. He added that the company expected still to be profitable, even when sales are tough.
Shannon Greene, chief financial officer and treasurer, added: “Looking at our balance sheet at February 29, we had $8.5 million of cash (up $1.7 million from year-end), which constitutes more than 28% of our current market cap, and we decreased our investment in inventory by $1.5 million from year-end 2007. I expect our March balance sheet to look similar. We recognise that we are in a tough retail environment. Despite the circumstances, economic or otherwise, we believe strongly in the long-term potential of this company and will do what it takes to be successful.”
