The market reacted positively toward Tandy Leather Factory, Inc.’s (TLF) September sales results, as its shares rose 1.3% within a day of the announcement. This Fort Worth, TX-based company carrying a Zacks Rank #3 (Hold), said that sales for the month increased 6% to $5.8 million from the year-ago period and surged 9% to $56.9 million year-to-date.
The retailer and wholesaler of leather as well as related merchandise operates under three segments, Retail Leathercraft, Wholesale Leathercraft and International Leathercraft. A look at the segments’ performance reveals that retail and international stores sustained their positive momentum, while wholesale stores also portrayed improvement.
Retail Leathercraft sales increased 7% to $3.4 million, whereas comparable-stores sales rose 6%. Year-to-date, sales for the segment surged 13% to $34 million, while comps grew 12%.
Wholesale Leathercraft sales climbed 3% to $2 million, while comparable-store sales rose 7%. As per the year-to-date results, the division posted sales of $20 million that rose 2% from the year-ago period. Meanwhile, comps were up 4%. National Account group's sales plunged 43% to $85,000, while year-to-date sales plummeted 28%.
Coming to the International Leathercraft segment, sales increased 18% to $308,000 and comparable-store sales experienced an equivalent rate of growth. Year-to-date, sales came in at $2.9 million, up 25% from $2.3 million last year, whereas comps rose by a similar rate.
Management stated that sales for the third quarter climbed 7% versus the prior-year quarter, while all the three divisions attained comparable-stores sales gains.
Tandy Leather operates 29 Leather Factory stores in 19 states and 3 Canadian provinces, 78 Tandy Leather retail outlets in 37 states and 6 Canadian provinces, and 3 wholesale/retail combined outlets in the United Kingdom, Australia and Spain.