Tandy Leather's consolidated gross profit margins fall
08 May '08
2 min read
Tandy Leather Factory Inc reported financial results for the first quarter of 2008. Net income for the quarter ended March 31, 2008 was $584,000, down from net income of $1.3 million in the first quarter of 2007. Fully-diluted earnings per share for the quarter was $0.05 in the current quarter, compared to $0.12 in last year's first quarter. Total sales for the first quarter were $13.3 million, down 9% from $14.5 million in the same quarter last year.
Sales from the Retail Leathercraft operation, consisting of the Tandy Leather retail store chain, increased $16,000 in the first quarter, virtually the same as last year's first quarter sales of $6.3 million. The chain consists of seventy-two stores as of March 31, 2008, compared to sixty-five retail stores a year ago.
First quarter sales for the Wholesale Leathercraft operation, consisting of the Leather Factory wholesale centers and the National Account group, decreased $1.2 million or 15% over the same quarter last year. International Leathercraft, consisting of one combination wholesale and retail store located in the United Kingdom, added sales of $42k for the quarter. This store was opened in February 2008.
Consolidated gross profit margins decreased from 59.3% in the first quarter of 2007 to 58.4% in the first quarter of 2008. Operating expenses increased from $6.6 million in the first quarter of 2007 to $7.0 million in the first quarter of 2008, increasing as a percentage of revenue from 45.8%in 2007 to 52.9% in 2008.