Tandy Leather Factory (NASDAQ: TLF) reported its Q1 2025 financial results, showing a slight decline in performance. Revenue decreased 1.2% to $19.0 million compared to 2024, while net income from operations fell to $0.3 million from $0.7 million. The company's gross margins declined to 56.3% from 56.7%, and operating expenses increased 1.8% to $10.5 million. A significant development was the sale of their corporate headquarters in January 2025, which enabled a special dividend payment of $1.50 per share to stockholders. The company's cash position strengthened to $23.6 million, up from $12.3 million year-over-year. CEO Johan Hedberg warned about expected increased costs and likely operating losses for 2025 due to the planned headquarters relocation in Q3, as well as potential impacts from upcoming tariffs on imported products.
Tandy Leather Factory (NASDAQ: TLF) ha comunicato i risultati finanziari del primo trimestre 2025, evidenziando un leggero calo nelle prestazioni. I ricavi sono diminuiti dell'1,2% a 19,0 milioni di dollari rispetto al 2024, mentre l'utile netto operativo è sceso a 0,3 milioni di dollari da 0,7 milioni. I margini lordi dell'azienda sono calati al 56,3% dal 56,7%, e le spese operative sono aumentate dell'1,8% raggiungendo 10,5 milioni di dollari. Un evento significativo è stata la vendita della sede centrale nel gennaio 2025, che ha permesso un dividendo speciale di 1,50 dollari per azione agli azionisti. La posizione di cassa dell'azienda si è rafforzata a 23,6 milioni di dollari, rispetto ai 12,3 milioni dell'anno precedente. Il CEO Johan Hedberg ha avvertito di costi in aumento e probabili perdite operative per il 2025 a causa del previsto trasferimento della sede nel terzo trimestre, oltre ai possibili effetti delle nuove tariffe sulle importazioni.
Tandy Leather Factory (NASDAQ: TLF) reportó sus resultados financieros del primer trimestre de 2025, mostrando un leve descenso en su desempeño. Los ingresos disminuyeron un 1,2% hasta 19,0 millones de dólares en comparación con 2024, mientras que las ganancias netas operativas cayeron a 0,3 millones desde 0,7 millones. Los márgenes brutos de la compañía bajaron al 56,3% desde 56,7%, y los gastos operativos aumentaron un 1,8% hasta 10,5 millones de dólares. Un hecho relevante fue la venta de su sede corporativa en enero de 2025, que permitió un dividendo especial de 1,50 dólares por acción para los accionistas. La posición de efectivo de la empresa se fortaleció a 23,6 millones de dólares, frente a 12,3 millones del año anterior. El CEO Johan Hedberg advirtió sobre costos crecientes y posibles pérdidas operativas en 2025 debido a la reubicación planeada de la sede en el tercer trimestre, así como a los posibles impactos de los aranceles próximos sobre productos importados.
Tandy Leather Factory(NASDAQ: TLF)는 2025년 1분기 재무 결과를 발표하며 실적이 다소 감소했음을 보였습니다. 매출은 2024년 대비 1.2% 감소한 1,900만 달러를 기록했고, 영업 순이익은 70만 달러에서 30만 달러로 줄어들었습니다. 회사의 총 마진율은 56.7%에서 56.3%로 하락했고, 영업 비용은 1.8% 증가해 1,050만 달러에 달했습니다. 2025년 1월 본사 매각이 큰 사건이었으며, 이를 통해 주주들에게 주당 1.50달러 특별 배당금을 지급할 수 있었습니다. 현금 보유액은 전년 대비 1,230만 달러에서 2,360만 달러로 증가했습니다. CEO 요한 헤드버그는 3분기 예정된 본사 이전과 다가오는 수입품 관세로 인해 2025년에 비용 증가와 영업 손실이 예상된다고 경고했습니다.
Tandy Leather Factory (NASDAQ : TLF) a publié ses résultats financiers du premier trimestre 2025, montrant une légère baisse de performance. Le chiffre d'affaires a diminué de 1,2 % pour atteindre 19,0 millions de dollars par rapport à 2024, tandis que le résultat net d'exploitation est passé de 0,7 million à 0,3 million de dollars. La marge brute de l'entreprise est passée de 56,7 % à 56,3 %, et les charges d'exploitation ont augmenté de 1,8 % pour atteindre 10,5 millions de dollars. Un événement marquant a été la vente du siège social en janvier 2025, qui a permis le versement d'un dividende exceptionnel de 1,50 dollar par action aux actionnaires. La trésorerie de l'entreprise s'est renforcée, passant de 12,3 millions à 23,6 millions de dollars. Le PDG Johan Hedberg a mis en garde contre une augmentation des coûts et de probables pertes d'exploitation en 2025, en raison du déménagement prévu du siège au troisième trimestre, ainsi que des impacts potentiels des nouveaux tarifs sur les produits importés.
Tandy Leather Factory (NASDAQ: TLF) veröffentlichte seine Finanzergebnisse für das erste Quartal 2025 und zeigte dabei einen leichten Rückgang der Leistung. Der Umsatz sank im Vergleich zu 2024 um 1,2 % auf 19,0 Millionen US-Dollar, während der operative Nettogewinn von 0,7 Millionen auf 0,3 Millionen US-Dollar zurückging. Die Bruttomargen des Unternehmens fielen von 56,7 % auf 56,3 %, und die Betriebsausgaben stiegen um 1,8 % auf 10,5 Millionen US-Dollar. Ein bedeutendes Ereignis war der Verkauf des Firmensitzes im Januar 2025, der eine Sonderdividende von 1,50 US-Dollar pro Aktie an die Aktionäre ermöglichte. Die Barreserven des Unternehmens stärkten sich von 12,3 Millionen auf 23,6 Millionen US-Dollar. CEO Johan Hedberg warnte vor erwarteten höheren Kosten und möglichen operativen Verlusten im Jahr 2025 aufgrund des geplanten Umzugs des Hauptsitzes im dritten Quartal sowie möglicher Auswirkungen durch bevorstehende Importzölle.
Positive
Sale of corporate headquarters enabled $1.50 per share special dividend distribution
Cash and cash equivalents increased to $23.6 million from $12.3 million year-over-year
Q1 sales and operating income exceeded internal forecasts
Inventory reduction to $34.4 million from $35.6 million showing improved inventory management
Negative
Revenue declined 1.2% to $19.0 million compared to 2024
Net income from operations decreased to $0.3 million from $0.7 million
Operating expenses increased 1.8% to $10.5 million
Expected operating losses for full year 2025 due to headquarters relocation
Upcoming tariffs likely to force price increases and impact sales and profits
Cash used in operations of $0.5 million in Q1
Insights
Tandy Leather's Q1 shows operational pressures despite headquarters sale windfall; facing headwinds from upcoming tariffs and relocation costs.
Tandy Leather Factory's Q1 2025 results reveal a company at a transitional inflection point. Revenue declined 1.2% to $19.0 million, with operating income contracting to $0.3 million from $0.7 million in the prior year. The 56.3% gross margin represents a slight deterioration of 40 basis points year-over-year, indicative of mild pricing pressure.
The headline $12.7 million net income figure is misleading without context - this primarily reflects the one-time headquarters sale, not operational performance. After adjustments, the normalized net income was just $0.4 million with Adjusted EBITDA of $0.6 million.
The company's $23.6 million cash position (up from $12.3 million a year ago) appears strong on the surface, but this primarily reflects the headquarters sale proceeds minus the $12.7 million special dividend ($1.50 per share) paid to shareholders. Operationally, the business actually consumed $0.5 million in cash during Q1, which signals challenges in the core business.
Inventory management shows some improvement, decreasing to $34.4 million from $35.6 million at year-end 2024, representing a 3.4% reduction. This prudent inventory management is positive given the sales decline.
Looking forward, management's candid commentary raises significant concerns. The planned headquarters relocation in Q3 2025 is expected to drive substantially increased costs and likely operating losses for the full year. More worrying is management's explicit warning about upcoming tariffs on their predominantly imported product lineup, which will necessitate price increases that could further depress sales volumes and profitability.
With 100 North American stores and one in Spain, Tandy faces the classic retail challenge of managing fixed costs against potentially declining revenues. The combination of relocation expenses and tariff impacts creates a challenging outlook for the remainder of 2025, despite Q1 results slightly exceeding internal forecasts.
FORT WORTH, Texas, May 12, 2025 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the first fiscal quarter of 2025.
Highlights from first quarter 2025:
Revenues were $19.0 million, down 1.2% from 2024
Generated operating income of $0.3 million
Net income from operations of $0.3 million, down from $0.7 million in 2024
Gross margins of 56.3%, down from 56.7% in 2024
Operating expenses $10.5 million, up 1.8% from 2024
Adjusted net income of $0.4 million
Adjusted EBITDA* (from operations) of $0.6 million
Ended quarter with $23.6 million of cash and cash equivalents
Tandy Leather Factory’s first quarter sales were $19.0 million in 2025, down from $19.3 million in 2024. First quarter 2025 gross profit was $10.7 million, down from $10.9 million in 2024. As of March 31, 2025, the Company held $23.6 million of cash and cash equivalents, up from $12.3 million a year earlier; this increase reflects the proceeds from the sale of the Company’s corporate headquarters in January 2025 (the “HQ Sale”), offset by cash used in operations in the first quarter of approximately $0.5 million and the payment of a special dividend to stockholders of approximately $12.7 million. The Company held inventory of $34.4 million, down from $35.6 million as of December 31, 2024. The Company had basic net income in the quarter of $1.49 and diluted net income of $1.47 per share, versus $0.06 basic and diluted per share in the prior year; first quarter 2025 includes adjusted net income from operations of $0.05 basic and diluted per share.
Johan Hedberg, Chief Executive Officer of the Company, said, “In the first quarter, we completed the sale of our corporate headquarters building, which allowed us to pay our stockholders a substantial dividend of $1.50 per share. As we have announced previously, our move to a new headquarters in Q3 of this year is still expected to lead to significantly increased costs and likely operating losses for full year 2025. Already underway with moving-related efforts, we were pleased to still achieve first quarter sales and operating income that were somewhat ahead of our internal forecasts. We hope to continue that momentum through the second quarter and beyond, while noting that we have not yet felt the full impact of the coming tariffs on the U.S. economy and our products, which are nearly all imported. If tariffs remain at the currently-announced levels, this will necessarily require us to increase our retail prices and likely lead to unavoidable declines in our sales and profits.”
* Adjusted EBITDA is a non-GAAP financial measure that the Company believes helps investors to compare its operating performance to that of other companies. The following is a reconciliation of the Company’s net income to Adjusted EBITDA (in millions):
Quarter ended March 31, 2025
Net income
$
12.7
Adjustment to net income(1)
(12.3
)
Adjusted net income (2)
0.4
Add back:
Depreciation and amortization
0.2
Interest income
(0.2
)
Income tax provision
0.1
Stock-based compensation
0.1
Adjusted EBITDA (from operations)
$
0.6
(1) This adjustment to net income removes the net proceeds from the sale of our corporate headquarters, related one-time relocation expenses, and tax related tax provision due to the sale. (2) Adjusted net income represents income from operations plus interest income.
Tandy Leather Factory, Inc., (http://www.tandyleather.com), headquartered in Fort Worth, Texas, is a specialty retailer of a broad product line, including leather, leatherworking tools, buckles and adornments for belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself kits. The Company distributes its products through its 100 North American stores located in 40 US states and six Canadian provinces, and one store located in Spain. Its common stock trades on the Nasdaq Capital Market under the symbol “TLF”. To be included on Tandy Leather Factory's email distribution list, go to: http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and resultant price fluctuations; change in customer preferences for our product, and other factors disclosed in our filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FAQ
What were Tandy Leather Factory's (TLF) Q1 2025 earnings results?
TLF reported Q1 2025 revenues of $19.0 million (down 1.2%), operating income of $0.3 million, and adjusted net income of $0.4 million. The company posted basic net income of $1.49 and diluted net income of $1.47 per share.
How much was TLF's special dividend in 2025?
Tandy Leather Factory paid a special dividend of $1.50 per share, totaling approximately $12.7 million, following the sale of their corporate headquarters in January 2025.
What is Tandy Leather's (TLF) cash position in Q1 2025?
As of March 31, 2025, TLF held $23.6 million in cash and cash equivalents, up from $12.3 million a year earlier, primarily due to the headquarters sale proceeds.
What are the main challenges facing Tandy Leather Factory (TLF) in 2025?
TLF faces challenges from headquarters relocation costs expected to cause operating losses in 2025, upcoming tariffs on imported products that will require price increases, and potential sales and profit declines.
What was TLF's gross margin in Q1 2025?
Tandy Leather Factory reported a gross margin of 56.3% in Q1 2025, down from 56.7% in the same period of 2024.
An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
