Tandy Leather Factory Inc reported financial results for the first quarter of 2007. Net income for the quarter ended March 31, 2007 was $1.3 million, equal to that of the first quarter of 2006.
Fully-diluted earnings per share for the quarter was $0.12 in the current quarter, the same as last year's first quarter. Total sales for the first quarter were $14.5 million, up slightly from $14.4 million in the same quarter last year.
Sales from the Retail Leathercraft operation, consisting of the Tandy Leather retail store chain, increased $713,000 in the first quarter, a 13% improvement over last year's first quarter. The chain consists of sixty-five stores as of March 31, 2007, compared to fifty-six retail stores a year ago. Three new stores were opened in the first quarter of 2007.
First quarter sales for the Wholesale Leathercraft operation, consisting of the Leather Factory wholesale centers and the National Account group, decreased $280,000 or 3% over the same quarter last year.
Consolidated gross profit margins improved from 56.3% in the first quarter of 2006 to 59.3% in the first quarter of 2007. Operating expenses increased from $6.1 million in the first quarter of 2006 to $6.6 million in the first quarter of 2007, increasing as a percentage of revenue from 42.1% in 2006 to 45.8% in 2007.
Expenses associated with new retail stores (rent, personnel, utilities, etc.), increased advertising and marketing, and employee benefitswere the primary contributors to the additional expense.
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