Tandy Leather Factory Reports Second Quarter 2025 Results

Tandy Leather Factory Reports Second Quarter 2025 Results

Benzinga
August 11, 2025

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, up 2.8% 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 from 58.0% in 2024

Operating expenses $10.5 million, up 5.5% 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 $17.8 million in 2025, up from $17.3 million in 2024. Second quarter 2025 gross profit was $10.6 million, up from $10.0 million in 2024. As of June 30, 2025, the Company held $16.4 million of cash and cash equivalents, up from $13.3 million a year earlier; this increase reflects the net proceeds from the sale of the Company's corporate headquarters in January 2025 (the "HQ Sale"), offset by the payment of a special dividend to stockholders in the first quarter of approximately $12.7 million. The Company held inventory of $36.2 million, up from $35.6 million as of December 31, 2024. The Company had basic and diluted net losses in the quarter of $0.02 per share, versus $0.01 basic and diluted net income per share in the prior year.

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 ...

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