Tandy Leather Factory’s total net sales declined -0.5% in the quarter to US$19.2 million, against US$19.3 million in the prior year. New stores added US$0.3 million of sales. Gross profit margin in the second quarter improved to 68.4% from 66.9% in the prior year. Operating income was approximately US$1,98 million in the quarter, representing a +19.7% improvement over prior year. Year-to-date net sales increased +0.1% to US$39.5 million, against prior year’s US$39.4 million, while gross profit margin improved to 65.8% from 63.9%.

“Our second quarter results were encouraging and reflect that we are headed in the right direction, said Shannon Greene, CEO, Tandy Leather. “While sales were tough this quarter, our success was on improving gross profit and operating margins which we did with customer and product mix and in controlling costs. As we look to the second half of 2018, we are excited about our product selections and line-up which we expect to drive some moderate top line expansion.”

Consolidated net income for the quarter ended June 30, 2018 was US$1.4 million from US$1 million in the same quarter of 2017, up +40%. Fully diluted earnings per share (EPS) for the second quarter of 2018 were US$0.15, from US$0.11 in Q2 2007. Consolidated net income for the first half of 2018 increased to US$2.7 million or EPS of US$0.29 versus US$2.3 million or US$0.24 in the comparable period of 2017.

Headquartered in Texas, U.S., Tandy Leather Factory is a specialty retailer of a broad product line that includes leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits.