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Tandy Leather Factory Q1 earnings up 28%

25 Apr '06

2 min read

Leather manufacturer Tandy Leather Factory Inc has reported financial results for the first quarter of 2006.

The net income for the quarter ended March 31st 2006 was $1.3 million, a 28 percent increase from $1.0 million for the first quarter of 2005. Fully-diluted earnings per share for the quarter increased to $0.12 from $0.10 in the first quarter of last year.

Total sales for the first quarter were $14.4 million, up 13 percent from $12.7 million in the same quarter last year.

Sales from the Retail Leathercraft operation, consisting of the Tandy Leather retail store chain, increased $1.3 million in the first quarter, a 29 percent improvement over last year's first quarter. The chain consists of fifty-six stores as of March 31st 2006, compared to forty-four retail stores a year ago. Six new stores were opened in the first quarter of 2006.

First quarter sales for the Wholesale Leathercraft operation, consisting of the Leather Factory wholesale centers and the National Account group, increased $474,000 or 6 percent over the same quarter last year.

Consolidated gross profit margins held steady at 56.3 percent for the first quarters of 2006 and 2005.

Wray Thompson, Chairman and CEO, said, "I am very pleased with our first quarter results because we accomplished our goal of strong sales growth with greater earnings growth. Our sales grew by 13 percent this quarter while our operating income grew by 30 percent.

The Retail Leathercraft division, consisting of the expanding Tandy Leather store chain, will continue to be the primary driver of growth. However, the Wholesale Leathercraft division is performing extremely well and beating our internal targets for sales growth. We are optimistic about our momentum generated in the first quarter and are working hard to continue that momentum into the second quarter."

Tandy Leather Factory Inc, headquartered in Fort Worth, Texas, is a specialty retailer and wholesale distributor of a broad product line including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits.

Tandy Leather Factory Inc

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