Tandy Leather Factory Inc. of Fort Worth has reported net income of $1.8 million in the second quarter, up 20.8 percent from $1.5 million in net income reported in the same quarter last year.
Total sales for first-quarter 2016 were $19.5 million, a drop of 1 percent compared to sales of $19.8 million in the same quarter in 2015.
Fully diluted earnings per share for the latest quarter totaled 19 cents, compared to 15 cents in last year’s second quarter.
“Sales have been tough this year — and our second quarter was no different,” said CEO Shannon L. Greene in a news release.
Greene said the firm aims to boost or maintain sales as she described gross profit and operating margins as the firm’s “real success” in the latest quarter.
“Specifically, we improved our gross profit margin even though sales declined and we reduced our operating expenses at a faster rate than that of sales. Our work is not done, however, as managing effectively through difficult periods such as this is crucial,” Greene said.
The company’s Retail Leathercraft division saw sales drop .3 percent, or $38,000, compared to last year’s second-quarter sales. For the first six months of 2016, Retail Leathercraft’s sales rose $95,000, or .4 percent, over the first six months of 2015. The division comprised 81 stores as of June 30, 2016 compared to 82 stores as of June 30, 2015.
Meanwhile, second-quarter sales for the Wholesale Leathercraft dropped by 5 percent, or $329,000, compared to the same quarter last year. For the first six months of 2016, Wholesale Leathercraft’s sales dropped by $558,000, or 4 percent, compared to the same period in 2015.
International Leathercraft, comprising four stores outside the United States, added sales of $117,000 for the quarter, a 14 percent increase from last year’s first quarter sales. For the first half of 2016, International Leathercraft’s sales rose 5 percent, or $96,000, compared to the same period last year.
Consolidated gross profit margin rose from 64.8 percent in second-quarter 2015 to 66.1 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 18 states and three Canadian provinces; 81 Tandy Leather retail stores, located in 36 states and six Canadian provinces; and four combination wholesale-retail stores in the United Kingdom, Australia and Spain.
More information is available at www.tandyleatherfactory.com.