Tandy to forge ahead with new store plans
08/01/2009
Specialist retail group Tandy Leather Factory has reported that sales for the month of December were $4.8 million compared to $4.9 million in December 2007, down 1%.
Year-to-date sales are down 4% to $53.3 million from $55.3 million last business year. Tandy's UK store, which opened in mid-February, reported December sales of $84,000 and $838,000 for the year.
For the fourth quarter, sales were down 6%, from $14.7 million in 2007 to $13.9 million in the current year. The company's retail operation reported a 3% sales gain for the quarter, with sales totaling $7.0 million compared to $6.8 million in 2007. But Tandy's wholesale business completed the quarter with a 16% sales loss, reporting sales of $6.5 million this quarter compared to sales of $7.7 million in last year's fourth quarter.
Chief executive officer, Ron Morgan, commented: "It has been difficult to predict performance all year and December followed suit. I am extremely pleased with the performance of our retail stores for the month and the fourth quarter. It is great to end the year with such strong results. Our wholesale business continues to struggle although the majority of the sales decline for December came from only half a dozen wholesale stores. Our gross profit margins are holding well as we didn't have to offer extensive discounts to get the sales. 2009 is going to be a tough year, but we are not going to sit back and simply try to survive. We will be announcing a new store opening soon as evidence that we are moving forward despite the difficult economic times."
Chief financial officer, Shannon Greene, added: "We met our revenue guidance for the year and in this environment, that's a big accomplishment. We ended the year in a strong cash position as I'm expecting we'll have close to $11 million in cash on our balance sheet."
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