Tandy Leather Factory, Inc. Reports September 2011 Sales Up 9% Over September 2010

Retail Same Store Sales Up 14%; Wholesale Same Store Sales Up 2%; UK Store Sales Up 12%


FORT WORTH, Texas, Oct. 6, 2011 (GLOBE NEWSWIRE) -- Tandy Leather Factory, Inc. (Nasdaq:TLF) reported today that sales for the month of September were $5.1 million, up 9% compared to September 2010 sales of $4.7 million. Year to date sales are up 11% to $47.4 million in the current year from $42.6 million last year.

Retail Leathercraft's sales rose 15% to $2.9 million compared to September 2010 sales of $2.5 million. For the month, the 76 comparable stores' sales were up 14% compared to the same period last year. The one store opened since September 2010 added September sales of $22,000. Year-to-date sales for Retail Leathercraft are $26.4 million this year, a 17% increase over sales of $22.6 million for the same period of 2010. For the year to date, the 75 comparable stores' sales were up 16% compared to sales reported for the same period in 2010.  

Wholesale Leathercraft posted sales of $2.1 million for September, up 1% compared to September 2010 sales of $2.1 million. Within the Wholesale Leathercraft division, same store sales were up 2% for the month while the National Account group's sales were also up 2% from September 2010. For the year to date, Wholesale Leathercraft sales are $19.4 million compared to $18.8 million in 2010, up 3%. As of the end of September, year to date same store sales were up 6% compared to the same period last year and the National Account group's sales are down 4%.       

International Leathercraft's sales rose 12% to $165,000 compared to September 2010 sales of $148,000. Year-to-date sales are $1.5 million this year, a 28% increase over sales of $1.2 million for the same period of 2010. International Leathercraft consists of one store located in the UK.

Chief Executive Officer and President, Jon Thompson, commented, "Sales were strong in September, completing the third quarter with a 13% sales gain. With the announcement of the opening of our new store in Australia and the release of our new catalog this week, we are looking forward to a solid fourth quarter to finish out the year. We were generally successful in protecting gross margins through the third quarter, despite continued cost increases. The pressure on margins should lessen for the fourth quarter as the release of our new catalog provides the opportunity to adjust retail selling prices as well as introduce new products." 

Shannon L. Greene, Chief Financial Officer, added, "The opening of the store in Australia has been highly anticipated and we are excited to see the additional growth we can generate in the country now that we have a local presence. The pre-opening and store set up costs incurred will be expensed in the fourth quarter now that the store is open, so we do not expect the store to be profitable in 2011. However, the impact to 2011 consolidated earnings should not be significant."

Tandy Leather Factory, Inc., http:/www.tandyleatherfactory.com">(http://www.tandyleatherfactory.com), headquartered in Fort Worth, Texas, is a specialty retailer and wholesale distributor 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 29 Leather Factory stores, located in 19 states and 3 Canadian provinces, 77 Tandy Leather retail stores, located in 36 states and 6 Canadian provinces, and two combination wholesale/retail stores located in the United Kingdom and Australia. Its common stock trades on the Nasdaq with 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">http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.

The Tandy Leather Factory, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7760

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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