FORT WORTH, Texas, Nov. 03, 2016 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (NASDAQ:TLF) reported today that sales for the month of October were $6.5 million, down 5% compared to October 2015 sales of $6.9 million. Year to date sales were $65.6 million, down 2% compared to sales of $67.0 million in the same period last year.
Retail Leathercraft’s sales decreased 4% to $4.2 million compared to October 2015 sales of $4.4 million. The 80 comparable stores’ sales were down 3% compared to the same period last year. The two stores opened since October 2015 added October sales of $90,000. Year-to-date sales for Retail Leathercraft are $42.2 million this year, a 1% decrease from sales of $42.5 million for the same period of 2015. As of the end of October, the 80 comparable stores’ sales were down 0.4% compared to sales reported for the same period in 2015.
Wholesale Leathercraft posted sales of $2.0 million for October, down 10% compared to October 2015 sales of $2.2 million. Within the Wholesale Leathercraft division, same store sales were down 8%. For the year to date, Wholesale Leathercraft sales are $20.3 million, down 6% from sales of $21.5 million for the same period a year ago. As of the end of October, Wholesale same store sales were down 4% compared to the same period last year.
International Leathercraft reported October sales of $314,000, up 13% compared to October 2015 sales of $277,000. Same store sales for the month decreased 0.7%. For the year to date, International Leathercraft sales were $3.1 million compared to $3.0 million in 2015, up 3%. For the year to date, same store sales were down 13%.
Chief Executive Officer, Shannon L. Greene, commented, "Our sales decline this month was partially due to one less selling day this year compared to last year, which we will get back next month. Even so, the year continues to be a challenging one. Given our sales results, we are revising our 2016 revenue guidance down slightly, from flat sales expected to a 1-2% sales decline compared to 2015. We are not changing our 2016 earnings guidance as we are still forecasting a 5% increase in this year’s earnings over last year, even with a slight sales decline.”
Mark Angus, President, added, “As we head into the holiday shopping season, we are excited about our featured product line up and our marketing plans. Further, we are very pleased with the warm reception from the Philadelphia market for our new store opened there a few weeks ago. Despite the retail headwinds, we are still on track to open several more stores in the coming months.”
Financial Outlook:
The following statements are based on TLF's current expectations as of November 3, 2016. These statements are forward-looking statements and should be read in conjunction with the cautionary information about these statements that appears below.
Estimated consolidated net sales for 2016 will be in the range of $82-83 million. EPS for 2016 are expected to be in the range of $0.69 to $0.71. Average shares outstanding, both basic and diluted, in 2016 are estimated to be approximately 9.7 million. The Company assumes an effective tax rate for the year between 36% and 37%.
Tandy Leather Factory, Inc., (http://www.tandyleather.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 27 Leather Factory stores, located in 18 states and 3 Canadian provinces, 82 Tandy Leather retail stores, located in 36 states and 6 Canadian provinces, and four combination wholesale/retail stores located in the United Kingdom, Australia, and Spain. Its common stock trades on the Nasdaq 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.