Based in Fort Worth, Texas, Tandy Leather Factory, Inc. recently reported its sales results for the month of August. Sales for this Zacks Rank #3 (Hold) company increased 7% to $6.3 million from the year-ago period and surged 10% to $51.1 million year-to-date.
The retailer and wholesaler of leather as well as related merchandise operates under three segments, Retail Leathercraft, Wholesale Leathercraft and International Leathercraft. A look at the segments’ performance reveals that retail and international stores sustained their positive momentum, while wholesale stores portrayed a soft performance.
Retail Leathercraft sales jumped 12% to $3.8 million, whereas comparable-stores sales rose 11%. Year-to-date, sales for the segment soared 14% to $30.6 million, while comps grew 13%.
Wholesale Leathercraft sales edged down 1% to $2.2 million, while comparable-store sales also dropped by an equal rate. As per the year-to-date results, the division posted sales of $17.9 million that inched up 1% from the year-ago period. Meanwhile, comps were up 3%.
Coming to the International Leathercraft segment, sales increased 17% to $306,000 and comparable-store sales also experienced an equivalent rate of growth. Year-to-date, sales came in at $2.6 million versus $2 million last year.
On the whole, retailers came up with mixed sales result for August. The month got off to a slow start and shift in the consumers shopping pattern toward cars and houses hurt sales of apparel, shoes and accessories. However, sales picked up later as retailers spent more on promotions and came up with lucrative discounts to drive traffic. However, heavy discounts raise concerns about margins.
Apparel retailer, Stein Mart Inc. (SMRT - Snapshot Report) , impressed analysts by posting a 3.8% rise in comps, while The Gap, Inc. (GPS - Analyst Report) , witnessed a 2% increase in comps. However, discount store operator, Fred's, Inc. (FRED - Analyst Report) , reported flat comps for August.