Based in Fort Worth, Texas,
Tandy Leather Factory, Inc.
) recently reported its sales results for the month of August.
Sales for this Zacks Rank #3 (Hold) company increased 7% to $6.3
million from the year-ago period and surged 10% to $51.1 million
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
portrayed a soft performance.
Retail Leathercraft sales jumped 12% to $3.8 million, whereas
comparable-stores sales rose 11%. Year-to-date, sales for the
segment soared 14% to $30.6 million, while comps grew 13%.
Wholesale Leathercraft sales edged down 1% to $2.2 million,
while comparable-store sales also dropped by an equal rate. As
per the year-to-date results, the division posted sales of $17.9
million that inched up 1% from the year-ago period. Meanwhile,
comps were up 3%.
Coming to the International Leathercraft segment, sales
increased 17% to $306,000 and comparable-store sales also
experienced an equivalent rate of growth. Year-to-date, sales
came in at $2.6 million versus $2 million last year.
On the whole, retailers came up with mixed sales result for
August. The month got off to a slow start and shift in the
consumers shopping pattern toward cars and houses hurt sales of
apparel, shoes and accessories. However, sales picked up later as
retailers spent more on promotions and came up with lucrative
discounts to drive traffic. However, heavy discounts raise
concerns about margins.
Stein Mart Inc.
), impressed analysts by posting a 3.8% rise in comps, while
The Gap, Inc.
), witnessed a 2% increase in comps. However, discount store
), reported flat comps for August.
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