Sales decline for Tandy Leather in third quarter

United States
Published:  16 November, 2022
Credit: Tandy Leather

Tandy Leather Factory has reported its third quarter results for the 2022 financial year, with sales down by 1%.

The company achieved net sales of US$19.1 million in the period, down by 1% year-on-year. The gross profit for the third quarter was US$11.6 million, up by 4.5%, with a gross margin of 60.8%.

Tandy also announced the opening of its 104th store at the concession mall at the Fort Bragg Army Base in North Carolina, building on its “strong affinity” with members of the military. The company further noted that this store would be “an important test of the potential for other military locations around the world”.

CEO Janet Carr said: "Our improved gross margins reflect the traction we've been gaining with our everyday-low-price pricing strategy which is driving higher full-priced selling as our promotional events come in softer.

“Our margins are also helped by product and customer channel mix shifts with stronger growth in proprietary products and e-commerce. These factors, coupled with our concerted efforts to manage operating expenses, allowed us to grow the bottom line even against the modest decline in top-line sales.

"That said, we don't see the consumer demand environment improving anytime soon. Continued global inflation, rising labour costs and the current threat of recession are likely to prolong today's very tough retail environment for the foreseeable future.

“In Q3, we have nimbly refocused from sales growth initiatives (against significant headwinds) to drive profit and cash. We are building our 2023 plan to deliver cash and profit growth under the assumption that consumer demand will continue to be soft – by optimising gross profit dollars and proactive reductions in operating expenses."