A. Lee Graham
Reporter
Tandy Leather Factory Inc. of Fort Worth has reported net income up $1.9 million in the first quarter, or 17 percent more than the same period last year.
Fully diluted earnings per share for the latest quarter totaled 18 cents, compared to 16 cents in last year’s first quarter, up 13 percent.
“We are generally pleased with our first quarter results, as we achieved our goal of increased sales and earnings over last year’s first quarter.” said president and CEO Jon Thompson in a news release.
“Our new stores are contributing nicely to sales as they grow their customer bases, but are not contributing to earnings yet. However, if their sales ramp up as expected, I see no reason why they won’t be profitable by year end,” Thompson said.
The company’s Retail Leathercraft division saw sales rise 3 percent, or $400,000, compared to last year’s first-quarter sales. The division comprised 80 stores as of March 31, 2014, with four new stores added since the same date last year.
Meanwhile, first-quarter sales for the Wholesale Leathercraft rose 1 percent, or $94,000, compared to the same quarter last year.
The Wholesale Leathercraft division saw store sales rise 1 percent, with national account sales edging up 20 percent.
International Leathercraft, comprising stores in the United Kingdom, Australia and Spain, added sales of $1 million for the quarter, 12 percent more compared to last year’s first quarter sales of $948,000.
Consolidated gross profit margin rose from 62 percent in first-quarter 2013 to 64 percent in the same quarter this year. Operating expenses increased $439,000 in first-quarter 2014 to $9.7 million compared to $9.3 million in the first quarter of 2013, increasing as a percentage of sales from 48 percent in 2013 to 49 percent in 2014.
Compared to first-quarter 2013, the company said that employee compensation was the primary contributor to the operating expense increase, followed by travel, rent and utilities expenses.
Tandy Leather Factory Inc. sells and distributes leather, leatherworking tools, do-it-yourself-kits and many other products. Its products are distributed through its 29 Leather Factory stores, located in 19 states and three Canadian provinces; 80 Tandy Leather retail stores, located in 36 states and six Canadian provinces; and three combination wholesale-retail stores in the United Kingdom, Australia and Spain.
More information is available at www.tandyleatherfactory.com.