Leathergoods and leather retailer Tandy Leather Factory has suggested business is “getting tougher overall” as it reported flat third quarter revenues for the third quarter at $19.4 million but a 32% drop in income to $1.1 million.
Jon Thompson, CEO of the US group, said the results were in line with expectations. “Our gross profit margin was supported by a number of special leather purchases last year. This year, our lower inventory level and the lack of those special purchases are having a negative impact on our sales and gross margin by comparison."
Chief financial officer Shannon Greene added: "Our assessment of business in general seems to suggest that things are getting tougher overall. Many of our small business customers are losing confidence to maintain their normal purchase levels because they are sensing a slowdown is coming in their businesses.
"We have talked all year about the negative impact of currency exchange rates on our foreign operations which is adding to the negative trends in our results. Our expenses are not too far out of line but we will continue to look for areas that can be trimmed without sacrificing the customer experience in our stores."
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