UK store boosts Q2 sales at Tandy Leather
Specialist leather retailer and wholesaler Tandy Leather Factory, Inc. has posted slightly higher sales in the second quarter ended June 30.
Total sales for the quarter were $13.8 million, up 4% from $13.4 million in the second quarter last year. However, consolidated sales for the six months ended June 30 were $27.1 million, down 3% compared with the prior-year period.
Sales in the retail leathercraft segment, which consists of the Tandy Leather stores, increased $393,000 in the second quarter, a 7% improvement over last year's second quarter. For the first six months of 2008, Tandy Leather sales increased $410,000, or 3%, over the prior-year period.
Second quarter sales for the wholesale leathercraft segment, which consists of the Leather Factory wholesale centres and national account group, were almost flat, rising $42,000 or 0.5%. For the first six months of 2008, wholesale leathercraft's sales were down $1.2 million, or 8%, compared with the same period in 2007. International leathercraft, consisting of one combination wholesale and retail store located in the UK, added sales of $194,000 for the quarter and $235,000 for the year. The store opened in February.
Consolidated net income for the quarter was $655,000 compared with $397,000 for the second quarter of 2007. Consolidated net income for the first half was $1.2 million versus $1.7 million in prior-year period.
CEO, Ron Morgan, said: "While we are still behind in terms of sales and profits from where we were at this time last year, our second quarter results are positive. We achieved a respectable sales gain in light of the economy, gross profit margin rose slightly and our operating expenses were down, even with the several new stores in this quarter that didn't exist last year.
"We are very pleased with the growth from our UK store despite the fact that the inflation rate is higher than expected and economists there are expecting consumer spending to tighten.”
