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Tandy Leather Factory, Inc. Reports December 2009 Total Sales and Retail SSS Both Up 14% Over December 2008

^{Published on 2010-01-07 18:00:24 - Market Wire}
 

FORT WORTH, Texas--([ BUSINESS WIRE ])--Tandy Leather Factory, Inc. (AMEX: TLF) reported today that sales for the month of December were $5.6 million, up 14% from December 2008 sales of $4.9 million. 2009 sales total $55.0 million, a 3% increase over 2008 sales of $53.3 million.

Retail Leathercraft's sales rose 17% to $3.2 million compared to December 2008 sales of $2.7 million. The 73 comparable stores' sales were up 14% for the month compared to the same period last year. The 2 stores opened since December 2008 added December sales of $80,000. 2009 sales for Retail Leathercraft are $28.1 million this year, an 11% increase over sales of $25.3 million for 2008. For the year, the 72 comparable stores' sales were up 9% compared to sales reported for 2008.

Wholesale Leathercraft posted sales of $2.3 million for December, up 11% from December 2008 sales of $2.0 million. Within the Wholesale Leathercraft division, the wholesale centers' sales were up 10% for the month while the National Account group's sales were up 25% compared to December 2008. For the year, Wholesale Leathercraft sales are $25.1 million compared to $26.4 million in 2008, down 5%. The wholesale centers' 2009 sales were down 5% and the National Account group's sales were down 3% compared to 2008.

International Leathercraft, which consists of one store in the UK, reported December sales of $113,000, a 34% increase over sales of $84,000 in December 2008. 2009 sales for International Leathercraft totaled $1.3 million, a 56% increase over 2008 sales of $838,000. The UK store opened in February 2008 as a combination retail and wholesale store.

Chief Executive Officer and President, Jon Thompson, commented, "Our sales goal for 2009 was to meet or exceed our 2008 sales and we did that with a 3% sales gain. The November momentum in our wholesale stores carried into December as the stores achieved a healthy December sales gain of 10%, and December was the fifth consecutive month of double-digit sales gains in the retail stores. Our UK store, with its two year anniversary coming up in February, continues its growth in the international market with another strong sales gain in December. We have done well in 2009, despite the challenges of the economic environment."

Shannon Greene, Chief Financial Officer and Treasurer, added, "We achieved a 12% sales gain for the fourth quarter – a nice way to end the year. Our Wholesale Leathercraft division reported a sales gain for the fourth quarter – its first quarterly sales gain since the second quarter of 2006, although it was not enough to offset the sales losses from earlier in the year as it ended the year with a 5% sales loss. We are encouraged by the trend that we have seen in our wholesale stores since August. The Retail Leathercraft division reported a 19% gain for the quarter. They seem to be unaware of the struggling consumer and his limited spending capacity."

Tandy Leather Factory, Inc., ([ http://www.tandyleatherfactory.com ]), headquartered in Fort Worth, Texas, is a specialty retailer and wholesale distributor of a broad product line including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. The Company distributes its products through its 29 Leather Factory stores, located in 19 states and 3 Canadian provinces, 75 Tandy Leather retail stores, located in 36 states and 5 Canadian provinces, one combination wholesale/retail store located in the United Kingdom, and Mid-Continent Leather Sales, one store located in Oklahoma. Its common stock trades on the NYSE Amex with the symbol "TLF". To be included on Tandy Leather Factory's email distribution list, go to [ http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0 ].

This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and resultant price fluctuations; change in customer preferences for our product, and other factors disclosed in our filings with the Securities and Exchange Commission.These forward-looking statements are made only as of the date hereof, and except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.