Tandy Leather's retail leathercraft segment goes up 38%
02 Aug '05
4 min read
The sales increase is the result of an increase of $388,000 at the wholesale centers that was partially offset by a sales decline in their national account group of $147,000. For the first six months of 2005, Wholesale Leathercraft's sales were down $288,000 over the same period in 2004. The national account group sales were down $584,000 for the year, offset somewhat by a sales increase at the wholesale centers of $296,000.
Consolidated gross profit margin for the current quarter was 56.6 percent, improving from 54.6 percent for the second quarter of 2004. For the first two quarters, consolidated gross profit margin for the current year was 56.5 percent, an improvement over last year's gross profit margin of 54.9 percent.
Consolidated operating expenses rose $451,000 in the current quarter and $761,000 for the first six months over the same periods a year ago. Costs associated with the new retail stores (personnel, rents, utilities, etc.), marketing and advertising costs account for the majority of the increase.
Wray Thompson, Chairman and Chief Executive Officer, stated, "Overall, they had a strong second quarter. The Retail Leathercraft segment reported a 38 percent sales gain for the quarter and same store sales, consisting of 32 Tandy Leather stores, were up 8 percent.
The Leather Factory wholesale centers, part of the Wholesale Leathercraft segment, reported a 6.5 percent sales gain for the quarter, while their national account group ended the quarter with a 10 percent sales decline compared to the second quarter of 2004.
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