Core Insights - Tandy Leather Factory, Inc. reported a decline in both fourth quarter and full year sales for 2024 compared to 2023, reflecting challenges in the retail environment [3][4][8] - The company experienced an increase in operating expenses, which negatively impacted profitability, despite maintaining a positive cash position [4][5][8] - Future strategies include improving sales through stores and e-commerce, while managing costs associated with relocating headquarters and flagship store [6][8] Financial Performance - Fourth quarter sales were $20.5 million, down from $20.8 million in 2023 [3] - Full year sales totaled $74.4 million, a decrease of 2.4% from $76.2 million in 2023 [4][8] - Gross profit for the fourth quarter was $10.8 million, down from $11.5 million in 2023, with full year gross profit at $41.8 million, down from $45.2 million [3][4] - Net income for the fourth quarter was $0.04 per share, compared to $0.23 in the prior year, with full year net income at $0.8 million, down from $3.8 million [3][4][8] - Operating expenses increased to $41.2 million, up from $40.8 million in 2023, representing 55.4% of sales compared to 53.5% in the previous year [4][8] Cash and Inventory - As of December 31, 2024, the company held $13.3 million in cash and cash equivalents, an increase from $12.2 million a year earlier [3] - Inventory decreased to $35.6 million from $38.0 million as of December 31, 2023 [3] Future Outlook - The company aims to enhance sales in 2025 while managing the transition to leasing properties, which may disrupt sales and profitability [6] - The CEO expressed disappointment with 2024 results but highlighted the return of value to shareholders through a significant dividend payment of $1.50 per share [5]
Tandy Leather Factory Reports Fourth Quarter and Full Year 2024 Results