Tandy Leather Factory Inc. Releases Q2 2024 10-Q Report

Tandy Leather Factory Inc., a leading specialty retailer of leather and leathercraft-related items, has released its Form 10-Q report for the second quarter of 2024. The report highlights the company's financial performance and operational activities amidst challenging market conditions.

Financial Highlights

• Net Sales: $17,286 million, a decrease of 1.1% compared to the prior year period due to ongoing weak consumer demand.
• Gross Profit: $10,018 million, a decrease of 8.3% with a gross margin percentage of 58.0%, impacted by a one-time accounting adjustment in cost of sales.
• Income from Operations: $63 million, a decrease of 92.0% compared to the prior year period.
• Net Income: $101 million, a significant decrease from the prior year period.
• Basic Earnings Per Share: $0.01, reflecting the decrease in net income.

Business Highlights

• Revenue Segments: Tandy Leather Factory reported net sales disaggregated by geographic areas, with the United States contributing $15.3 million, Canada $1.737 million, and other regions $249,000 for the three months ended June 30, 2024.
• Geographical Performance: The company operates 101 retail stores, with 91 in the United States, 10 in Canada, and one in Spain. The decrease in sales was attributed to weak consumer demand due to global political and economic uncertainties.
• Sales Units: The company opened one new store and closed one store during the second quarter of 2024, maintaining a total of 101 stores.
• Future Outlook: Tandy Leather Factory is focused on improving financial sustainability and profitability by managing operating expenses and gross margin to deliver free operating cash and income amidst potential economic headwinds.

SEC Filing: Tandy Leather Factory Inc. Releases Q2 2024 [ NASDAQ:TLF ] - 10-Q - Aug. 07, 2024