The market reacted positively toward Tandy Leather Factory, Inc.’s (TLF) September sales results, as its shares rose 1.3% within a day of the announcement. This Fort Worth, TX-based company carrying a Zacks Rank #3 (Hold), said that sales for the month increased 6% to $5.8 million from the year-ago period and surged 9% to $56.9 million year-to-date.
The retailer and wholesaler of leather as well as related merchandise operates under three segments, Retail Leathercraft, Wholesale Leathercraft and International Leathercraft. A look at the segments’ performance reveals that retail and international stores sustained their positive momentum, while wholesale stores also portrayed improvement.
Retail Leathercraft sales increased 7% to $3.4 million, whereas comparable-stores sales rose 6%. Year-to-date, sales for the segment surged 13% to $34 million, while comps grew 12%.
Wholesale Leathercraft sales climbed 3% to $2 million, while comparable-store sales rose 7%. As per the year-to-date results, the division posted sales of $20 million that rose 2% from the year-ago period. Meanwhile, comps were up 4%. National Account group's sales plunged 43% to $85,000, while year-to-date sales plummeted 28%.
Coming to the International Leathercraft segment, sales increased 18% to $308,000 and comparable-store sales experienced an equivalent rate of growth. Year-to-date, sales came in at $2.9 million, up 25% from $2.3 million last year, whereas comps rose by a similar rate.
Management stated that sales for the third quarter climbed 7% versus the prior-year quarter, while all the three divisions attained comparable-stores sales gains.
Tandy Leather operates 29 Leather Factory stores in 19 states and 3 Canadian provinces, 78 Tandy Leather retail outlets in 37 states and 6 Canadian provinces, and 3 wholesale/retail combined outlets in the United Kingdom, Australia and Spain.
Other stocks worth considering in the retail sector, include Citi Trends, Inc. (CTRN), DSW Inc. (DSW) and Lumber Liquidators Holdings, Inc. (LL), all sporting a Zacks Rank #1 (Strong Buy).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment