Tandy Leather Factory Reports October 2015 Sales Down 5% Against Record Sales in Last Year's Q4
FORT WORTH, Texas, Nov. 05, 2015 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (NASDAQ: TLF) reported today that sales for the month of October were $6.9 million, down 5% compared to October 2014 sales of $7.2 million. Year to date sales were $67.0 million, up 1% compared to sales of $66.4 million in the same period last year.
Retail Leathercraft's sales decreased 2% to $4.4 million compared to October 2014 sales of $4.5 million. The 80 comparable stores' sales were down 4% compared to the same period last year. The two stores opened since October 2014 added October sales of $66,000. Year-to-date sales for Retail Leathercraft are $42.5 million this year, a 4% increase over sales of $40.9 million for the same period of 2014. As of the end of October, the 79 comparable stores' sales were up 2% compared to sales reported for the same period in 2014.
Wholesale Leathercraft posted sales of $2.2 million for October, down 6% compared to October 2014 sales of $2.3 million. Within the Wholesale Leathercraft division, same store sales were down 5%. For the year to date, Wholesale Leathercraft sales are $21.5 million, down 2% from sales of $22.0 million for the same period a year ago. As of the end of October, the wholesale same store sales were up 1% compared to the same period last year.
International Leathercraft reported October sales of $277,000, down 25% compared to October 2014 sales of $369,000. Same store sales were down 29%. One new store was opened in October adding sales of $15,000. For the year to date, International Leathercraft sales were $3.0 million compared to $3.5 million in 2014, down 14%. As of the end of October, same store sales were down 14%.
Chief Executive Officer and President, Jon Thompson, commented, "We knew the sales comparison this quarter was going to be tough as we are working against record sales in last year's fourth quarter. We are also hearing a consistent message from our customers – that they are just not buying this year at the same frequency and levels as last year. Finally, a year ago, our inventory level was $3 million higher than it is right now – and we were aggressive with our product features in our advertising campaigns. This year, our goal is to protect gross margins in the fourth quarter so we have been more conservative with our product offers, which has contributed to lower sales."
Chief Financial Officer and Treasurer, Shannon L. Greene, added, "Our international stores had a difficult month in their local currencies as well as the conversion to US dollars. We significantly raised selling prices in the foreign markets this month to compensate for the change in conversion rates, which hurt sales but will help gross margins. Further, the stronger US dollar continues to negatively impact results on paper. Our October sales decline was two percent lower if the foreign currency impact is excluded. Despite all of the negativity this month, we are still ahead of our revenue guidance for 2015 as of the end of October."
Tandy Leather Factory, Inc., (http://www.tandyleather.com), 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. The Company distributes its products through its 28 Leather Factory stores, located in 19 states and 3 Canadian provinces, 82 Tandy Leather retail stores, located in 36 states and 6 Canadian provinces, and three combination wholesale/retail stores located in the United Kingdom, Australia, and Spain. Its common stock trades on the Nasdaq with the symbol "TLF". To be included on Tandy Leather Factory's email distribution list, go to http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and resultant price fluctuations; change in customer preferences for our product, and other factors disclosed in our filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.