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Tandy Leather 4Q net income, revenue rises

FORTH WORTH, Texas (AP) -- Tandy Leather Factory saw fourth-quarter net income jump 29 percent as the retailer continues to expand the size of its stores to boost sales.

Tandy earned $2.2 million, or 22 cents per share, for the three months ended Dec. 31. That's up from $1.7 million, or 17 cents per share, a year earlier.

Revenue increased 9 percent to $20.6 million, the company said Tuesday.

"We believe our strategy of expanding the size of our existing stores is working well, as evidenced by our sales growth over the last several years, said CEO Jon Thompson. "In addition, we have been successful in getting more product in our stores while not significantly increasing the back stock held in our central warehouse."

Tandy's revenue, after dipping in 2007, has jumped every yearsince the company posted annual sales of $53.3 million in 2008. At the end of 2012, revenue totaled $72.7 million, up 10 percent from the previous year.

Total revenue for traditional retail stores rose 13 percent to $12.5 million during the most recent quarter. Revenue for retail stores open at least a year climbed 12 percent in the quarter.

For the wholesale leather craft business, total revenue dipped slightly. Wholesale same-store sales rose 8 percent, while national account sales dropped 71 percent.

The relatively small international business reported total revenue rose 58 percent in the quarter. Revenue from the three stores in the segment open at least a year increased 38 percent.

For the year, the company earned $5.6 million, or 55 cents per share. In the previous year it earned $4.8 million, or 47 cents per share.

Tandy Leather Factory Inc., based in Fort Worth, Texas, anticipates 2013 earnings between 69 and 72 cents per share. Revenue is forecast in a range of $78 million to $80 million.

The company expects to open one to two stores in the U.S. this year.