Wholesale slide lowers Tandy result for the quarter
08/05/2008
Having earlier reported an increase in sales for the month of April, the news turned negative again for specialist retail group Tandy Leather Factory when it issued its first-quarter results on May 7.
There was a fall in sales of 9% for the period, compared to the first quarter of 2007 and net income fell by more than 50%.
The company said sales in its retail operation stayed at almost the same figure, $6.3 million, as last year, but the company's wholesale operation experienced a drop of around 15%.
Once again, the company mentioned its new store in the UK as a source of hope for the future; it opened in February and achieved sales of $42,000 for the quarter.
Chief executive, Ron Morgan, commented: “We knew, and stated publicly, that our earnings this quarter would not be as strong as last year’s first quarter. As expected, sales were weak and we had some unusual expenses in the first quarter. The move of our corporate offices at the end of the quarter went better than expected and the UK store is showing good potential. It missed reporting a profit in March by just a few hundred dollars so I expect it to begin adding to our profits in the second quarter.”
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