The stores' sales decreased $37,000, or 0.5%, and national account sales were down $214,000, or 19.1%. For the year, Wholesale Leathercraft's sales were up $21,000, or 0.1%. Sales in the stores increased $633,000, or 2.5%, while sales to national accounts were down $214,000, or 4.4%, for the year.
Consolidated gross profit margin for the fourth quarter was 58.8%, an improvement from 56.5% for the fourth quarter of 2005. For 2006, consolidated gross profit margin was 57.3%, an improvement over the previous year's gross profit margin of 56.7%.
Consolidated operating expenses for the fourth quarter of 2006 were 44.9% of sales, increasing from 43.8% for the same quarter of 2005. Operating expenses totaled 44.5% of sales for 2006, an improvement from 45.7% for 2005.
Ron Morgan, Chief Executive Officer and President, commented, "Our 2006 sales grew by 9%, but more importantly, our operating profit was up by 29%, which indicates a continued improvement in operating efficiency. Our goal for 2007 will be the same: sales growth with greater earnings growth."
"We are on track with our planned retail store openings for 2007, having opened three new stores so far this year. Our sales in the first two months of 2007 fell short of our internal expectations. Weaker sales translate into tougher expense control. So while we are devoting substantial efforts toward strengthening sales, we will also be monitoring expenses closely as the year progresses."
Tandy Leather Factory Inc
marketing@alchempro.com
