Tandy Leather Factory Reports Third Quarter 2022 Results and Opening of a New Store at Fort Bragg Army Base

About this update from Tandy Leather Factory, Inc.

[{"type":"text","content":"FORT WORTH, Texas, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the third quarter, ended September 30, 2022. Third Quarter Highlights: Net sales of $19.1 millionGross profit of $11.6 million and a gross margin of 60.8%Operating income of $1.0 millionNet income of $0.7 million, or $0.09 per diluted shareAdjusted EBITDA* of $1.5 millionEnded the quarter with $3.1 million in cash and cash equivalents Tandy Leather Factory’s third quarter sales were $19.1 million in 2022, down from $19.3 million in 2021. 2022 third quarter gross profit was $11.6 million versus $11.1 million in 2021. As of September 30, 2022, the Company held $3.1 million of cash and cash equivalents, down from $10.2 million at year end and the Company’s September 30, 2021, balance of $6.1 million. The Company held inventory of $42.3 million, versus $43.7 million as of September 30, 2021. The Company had net basic and diluted net income in the quarter of $0.09 per diluted share, which was up from net basic and diluted losses of less than $0.01 in the prior year. Additional details regarding the Company’s third quarter 2022 results can be found in its Quarterly Report on Form 10-Q, filed with the SEC on November 14, 2022. Janet Carr, Chief Executive Officer of the Company, 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 ecommerce. 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 labor 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 optimizing gross profit...

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