Chief Executive Officer and President, Ron Morgan, commented, "Our consolidated sales still look weak, but I'm encouraged with the sales results at the stores. For June, the retail stores posted a 17% sales gain and a 9% same store sales gain. For the quarter, they posted a 13% sales gain and a 4% same store sales gain."
"The wholesale stores still need some work, but I'm encouraged that they matched last year's June sales. Our National Account group and Other segment (Roberts, Cushman) really hurt us this month, posting sales declines of 35% and 65%, respectively. Fortunately, we're not depending on either of those groups for our future growth. The sales declines of these two groups were the difference between flat sales and a mid-single digit consolidated sales gain this month."
Mr. Morgan continued, "Given that we are half way through the year, I think it is prudent to adjust our 2007 guidance downward. Our focus is and will continue to be on sales and earnings growth, as well as execution of our expansion strategy, but I think revising guidance to sales growth of 3-6% and earnings growth of 14-18% is more reasonable and achievable at this point."
Financial Outlook:
The Company plans to open a total of 12 Tandy Leather retail stores in 2007 and estimates consolidated net sales for 2007 will be in the range of $57 to $59 million. Diluted EPS for 2007 is expected to be in the range of $0.49 to $0.51. Average diluted shares outstanding in 2007 are estimated to be approximately 11 million shares. The Company assumes an effective tax rate for the year between 35% and 36%.
Tandy Leather Factory Inc
marketing@alchempro.com
