Tandy Leather Factory Reports Second Quarter 2025 Results
Tandy Leather Factory (Nasdaq: TLF) reported mixed Q2 2025 financial results. Revenue increased 2.8% to $17.8 million, while gross margins improved to 59.5% from 58.0% year-over-year. However, the company posted a net loss of $0.2 million compared to a $0.1 million profit in 2024.
Operating expenses rose 5.5% to $10.5 million, primarily due to the transition from owned to leased facilities following the January 2025 headquarters sale. The company maintains a strong cash position of $16.4 million, up from $13.3 million last year, despite paying a $12.7 million special dividend in Q1. Management anticipates continued operating losses for 2025 and warns of potential impacts from newly-announced tariffs.
Tandy Leather Factory (Nasdaq: TLF) ha riportato risultati finanziari contrastanti nel secondo trimestre 2025. I ricavi sono aumentati del 2,8% a $17,8 milioni, mentre il margine lordo è migliorato al 59,5% rispetto al 58,0% dell'anno precedente. Tuttavia, la società ha registrato una perdita netta di $0,2 milioni, a fronte di un utile di $0,1 milioni nel 2024.
Le spese operative sono salite del 5,5% a $10,5 milioni, principalmente per il passaggio da strutture di proprietà a locali in affitto dopo la vendita della sede centrale a gennaio 2025. Nonostante il pagamento di un dividendo straordinario di $12,7 milioni nel primo trimestre, la società mantiene una solida posizione di cassa di $16,4 milioni, in aumento rispetto ai $13,3 milioni dell'anno scorso. Il management prevede perdite operative continue per il 2025 e avverte dei potenziali impatti dei dazi recentemente annunciati.
Tandy Leather Factory (Nasdaq: TLF) presentó resultados financieros mixtos en el segundo trimestre de 2025. Los ingresos aumentaron un 2,8% hasta $17,8 millones, mientras que el margen bruto mejoró al 59,5% desde el 58,0% interanual. No obstante, la compañía registró una pérdida neta de $0,2 millones frente a una ganancia de $0,1 millones en 2024.
Los gastos operativos subieron un 5,5% hasta $10,5 millones, principalmente por la transición de instalaciones propias a alquiladas tras la venta de la sede en enero de 2025. A pesar de haber pagado un dividendo extraordinario de $12,7 millones en el primer trimestre, la empresa mantiene una sólida posición de efectivo de $16,4 millones, frente a $13,3 millones del año anterior. La dirección espera que continúen las pérdidas operativas en 2025 y advierte sobre los posibles efectos de los aranceles recientemente anunciados.
Tandy Leather Factory (Nasdaq: TLF)는 2025년 2분기에 엇갈린 재무 실적을 발표했습니다. 매출은 2.8% 증가한 $17.8 million을 기록했고, 총이익률은 전년의 58.0%에서 59.5%로 개선되었습니다. 그러나 회사는 2024년의 $0.1 million 이익과 달리 $0.2 million의 순손실을 기록했습니다.
영업비용은 2025년 1월 본사 매각 이후 자체 보유 시설에서 임대 시설로 전환된 영향으로 5.5% 증가한 $10.5 million을 기록했습니다. 1분기에 $12.7 million의 특별배당을 지급했음에도 불구하고 회사는 $16.4 million(작년 $13.3 million 대비)의 견조한 현금 보유액을 유지하고 있습니다. 경영진은 2025년에도 영업손실이 이어질 것으로 예상하며, 최근 발표된 관세가 미칠 영향에 대해 경고했습니다.
Tandy Leather Factory (Nasdaq: TLF) a publié des résultats financiers mitigés pour le deuxième trimestre 2025. Le chiffre d'affaires a augmenté de 2,8% à $17,8 millions, tandis que la marge brute s'est améliorée à 59,5% contre 58,0% un an auparavant. Toutefois, la société a enregistré une perte nette de $0,2 million contre un bénéfice de $0,1 million en 2024.
Les charges d'exploitation ont augmenté de 5,5% à $10,5 millions, principalement en raison du passage de locaux détenus à des locaux loués après la vente du siège en janvier 2025. Malgré le versement d'un dividende exceptionnel de $12,7 millions au T1, l'entreprise conserve une position de trésorerie solide de $16,4 millions, contre $13,3 millions l'année précédente. La direction prévoit la poursuite des pertes d'exploitation en 2025 et met en garde contre les impacts potentiels des droits de douane récemment annoncés.
Tandy Leather Factory (Nasdaq: TLF) meldete für das zweite Quartal 2025 gemischte Finanzergebnisse. Der Umsatz stieg um 2,8% auf $17,8 Millionen, während die Bruttomarge sich von 58,0% auf 59,5% verbesserte. Dennoch verzeichnete das Unternehmen einen Nettoverlust von $0,2 Millionen, gegenüber einem Gewinn von $0,1 Millionen im Jahr 2024.
Die Betriebskosten stiegen um 5,5% auf $10,5 Millionen, hauptsächlich bedingt durch den Wechsel von eigenen zu angemieteten Räumlichkeiten nach dem Verkauf der Firmenzentrale im Januar 2025. Trotz der Zahlung einer Sonderdividende in Höhe von $12,7 Millionen im ersten Quartal hält das Unternehmen eine starke Barreserve von $16,4 Millionen (vorjahr: $13,3 Millionen). Das Management rechnet für 2025 mit anhaltenden Betriebsverlusten und warnt vor möglichen Auswirkungen neu angekündigter Zölle.
- Revenue growth of 2.8% to $17.8 million despite challenging environment
- Gross margin improvement to 59.5% from 58.0% year-over-year
- Strong cash position of $16.4 million, up from $13.3 million last year
- Increased sales productivity in U.S. retail stores
- Net loss of $0.2 million versus $0.1 million profit in 2024
- Operating expenses increased 5.5% to $10.5 million
- Expected operating losses for full year 2025
- Potential negative impact from newly-announced tariffs on future sales and profits
Insights
Tandy Leather shows mixed Q2 results with higher sales but swung to loss amid headquarters relocation costs.
Tandy Leather's Q2 2025 results paint a picture of modest growth amid operational transitions. The company achieved
However, the swing from a
The balance sheet remains solid with
Looking forward, management's cautionary tone regarding newly-announced tariffs that could impact future sales and profits suggests potential headwinds. For a specialty retailer like Tandy with 101 stores across 40 US states, six Canadian provinces, and one in Spain, these tariffs could significantly affect their predominantly imported product line of leather goods and tools. The ongoing relocation expenses will continue to pressure profitability in the near term, making the company's ability to maintain sales momentum through Q3 crucial for offsetting these operational challenges.
FORT WORTH, Texas, Aug. 11, 2025 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the second fiscal quarter of 2025.
Highlights from second quarter 2025:
- Revenues were
$17.8 million , up2.8% from 2024 - Generated operating income of
$0.1 million - Net loss of
$0.2 million versus income of$0.1 million in 2024 - Gross margins of
59.5% , up from58.0% in 2024 - Operating expenses
$10.5 million , up5.5% from 2024 - Adjusted EBITDA* (from operations) of
$0.3 million - Ended quarter with
$16.4 million of cash and cash equivalents
Tandy Leather Factory’s second quarter sales were
Johan Hedberg, Chief Executive Officer of the Company, said, “We were pleased to have grown our sales and margin dollars in the second quarter, despite the challenging environment and economic uncertainty. These gains were driven primarily by increased sales productivity in our U.S. retail stores. Our operating expenses increased as expected, driven largely by the shift to leasing our headquarters and distribution center spaces (which we owned during 2024) and other costs related to our now-in-progress move of those facilities in the third quarter; we still expect those costs to lead to operating losses for full year 2025. We hope to continue our sales momentum through the third quarter, while noting that newly-announced tariffs—which did not meaningfully affect our product costs in the second quarter—may impact our sales and profits going forward.”
Investors are encouraged to send their questions to the Company’s investor relations hotline at investorrelations@tandyleather.com.
* 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 June 30, 2025 | ||
| Net income | ( | ) |
| Adjustment to net income (1) | 0.4 | |
| Adjusted net income (2) | 0.2 | |
| Add back: | ||
| Depreciation and amortization | 0.2 | |
| Interest income | (0.2 | ) |
| Income tax provision | - | |
| Stock-based compensation | 0.1 | |
| Adjusted EBITDA (from operations) | ||
| (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 101 stores located in 40 US states and six Canadian provinces, including 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.
Contact: Johan Hedberg, Tandy Leather Factory, Inc., (817) 872-3200 or johan.hedberg@tandyleather.com
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.
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