Tandy Leather Factory announced its results for the second quarter of 2023, with sales down to $17.5 million, down 5% from $18.4 million in 2022. This comes after the first quarter reported a profit of $10.9 million, up from $10.5 million in the previous year.
The company’s gross margin reached 62.5%, with an adjusted EBITDA of $1.3 million and concluded the quarter with $10 million in cash and cash equivalents.
“In the second quarter we continued to pursue our strategies to increase operating income and cash flow offsetting the ongoing weakening consumer demand. Despite the expected decline in total sales, we were able to generate $0.8 million in operating income, versus a quarterly loss in 2022, and a $2 million increase in cash year to date,” said CEO Janet Carr.
“We have continued to successfully manage operating expenses, notably by putting a microscope on store staffing to maximize efficiency of operating and employee hours. We were also pleased with excellent gross margins in the quarter, although some of those were attributable to non-recurring adjustments made in the quarter. We believe we are well positioned to further leverage these efficiencies for more profitability when sales begin to rebound.”
