Tandy Leather Factory reports 1Q earnings

Tandy Leather Factory Inc. of Fort Worth has reported net income of $1.5 million in the first quarter, up 5 percent

from the $1.4 million net income reported in the same quarter in 2015.

Total sales for first-quarter 2016 were $20.7 million, a drop of 0.6 percen0t compared to sales of $20.8 million in the same quarter in 2015.

Fully diluted earnings per share for the latest quarter totaled 16 cents, compared to 14 cents in last year’s first quarter, up 14 percent.

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“We are fairly pleased with our results in the first quarter,” said interim CEO Shannon L. Greene in a news release.

Greene acknowledged soft sales and said he expects the trend to continue throughout the year.

“We know the lackluster retail environment can impact our sales because of cautious consumer spending, but we also know it is our job to manage the business through periods like this,” Greene said.

The company’s Retail Leathercraft division saw sales rise 1 percent, or $130,000, compared to last year’s first-quarter sales. The division comprised 82 stores as of March 31, 2016.

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Meanwhile, first-quarter sales for the Wholesale Leathercraft dropped by 3 percent, or $228,000, compared to the same quarter last year.

International Leathercraft, comprising four stores outside the United States, added sales of $933,000 for the quarter, a 2 percent drop from last year’s first quarter sales of $954,000.

Consolidated gross profit margin rose from 60.5 percent in first-quarter 2015 to 61.2 percent in the same quarter this year.

Tandy Leather Factory Inc. sells and distributes leather, leatherworking tools, do-it-yourself-kits and many other products. Its products are distributed through its 27 Leather Factory stores, located in 17 states and three Canadian provinces; 81 Tandy Leather retail stores, located in 37 states and six Canadian provinces; and three combination wholesale-retail stores in the United Kingdom, Australia and Spain.

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More information is available at www.tandyleatherfactory.com.