Net sales were $36.4 million for fourth quarter 2007 compared to $47.1 million in the prior year's fourth quarter.
Mr. Jenkins commented, “Fourth quarter sales actually exceeded our expectations despite a slowdown in replenishment orders from our largest customer. Our gross margins were negatively impacted by unexpected returns in our gift product line and an unfavorable product mix including closeout sales of discontinued women's merchandise.”
Mr. Jenkins continued, “Our team is focused on growing our profitable lines of men's, women's and boys' accessories and we expect to achieve increased profitability in fiscal 2008. We will see the first full year of gross margin benefit of solely producing through our overseas partners."
"In addition, Tandy is also launching three recently signed licensed brands, Eileen West, Goodyear Tire and Rubber and Geno D' Lucca which will continue to expand and diversify the top line."
"However, our outlook for the current quarter is clouded by the replenishment order delays of our major customer. Our relationship with this customer remains very good and we are seeing an increase in these orders in recent weeks but they are not yet back to a normal level. We will delay guidance for the fiscal first quarter and the year until this situation becomes clearer.”
The Board of Directors approved a quarterly dividend of $0.04 per common share payable October 19, 2007 to shareholders of record at the close of business on September 30, 2007.
This is the Company's 17th consecutive quarterly dividend and the third at the $0.04 per share level which was increased on February 1, 2007.
Tandy Brands has retained Financo Inc an investment banking firm specializing in the apparel and accessories sector, to assist management and the Board of Directors in the evaluation of a full range of strategic alternatives available to the company to increase shareholder value.
The Company does not intend to disclose developments with respect to this process until the Board has approved a specific course of action. There is no assurance as to what outcome may come from this process.
Mr. Jenkins stated, “While our initiatives over the past 18 months have significantly improved profitability and we remain confident in the future of the Company, we believe now is an appropriate time to explore a full range of strategic options to further enhance shareholder value.”
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
