Tandy Leather Factory: A Year of Pain for Shareholders

Listen up, folks! Tandy Leather Factory (NASDAQ:TLF) shareholders have had a rough year. The stock has plummeted 14% in the past year, and it's time to figure out why. Let's dive into the numbers and see what's been happening.

First off, let's talk about the elephant in the room: REVENUE DECLINE. Tandy Leather Factory's sales have been on a downward spiral. In the third quarter of 2024, sales were $17.4 million, down from $17.5 million in 2023. That's a 1.1% drop, and it's a trend that's been going on for a while. Customers are spending less on discretionary items, and traffic is down. The CEO, Janet Carr, even admitted that "customers are still spending less on discretionary items and our traffic is down."

But that's not all, folks. GROSS MARGINS have also taken a hit. In the third quarter of 2024, gross margins were 57.8%, down from 62.4% in 2023. That's a 300 basis point drop, and it's a big deal. The CEO blamed it on increased promotional activity in response to weaker consumer demand. But let's be real, folks. That's just a fancy way of saying they had to slash prices to move inventory.

And if that wasn't bad enough, OPERATING EXPENSES have been on the rise. In the third quarter of 2024, operating expenses were $10.3 million, up 2.3% from 2023. Inflation is to blame, but that's no excuse. The CEO admitted that "the 2.3% increase in operating expenses was driven primarily by inflationary pressures across all expense categories, especially employment costs."

So, what does all this mean for shareholders? Well, it's not pretty. The stock has been on a downward spiral, and it's not showing any signs of stopping. The latest closing stock price for Tandy Leather Factory as of July 11, 2024, was $4.36, which is 14.9% below the 52-week high stock price of $5.01. The company's market capitalization has also decreased to $0.037B, reflecting the overall decline in its financial performance and investor confidence.

But here's the thing, folks. Tandy Leather Factory has been through tough times before, and it's always managed to bounce back. In 2022, revenue saw a 41.67% increase, and in 2013, it saw a 76.81% increase. So, while the current situation is dire, it's not hopeless.



So, what should you do, folks? Well, that's up to you. But if you're a long-term investor, you might want to consider sticking it out. Tandy Leather Factory has a history of recovering from past difficulties, and it's possible that it could do so again. But if you're a short-term trader, you might want to consider cutting your losses and moving on. The stock has been on a downward spiral, and it's not showing any signs of stopping.

In conclusion, Tandy Leather Factory shareholders have had a rough year. Revenue has declined, gross margins have taken a hit, and operating expenses have been on the rise. But the company has been through tough times before, and it's always managed to bounce back. So, while the current situation is dire, it's not hopeless. You need to decide whether you're in it for the long haul or looking for a quick profit. Either way, keep your eyes on this stock, folks. It's a wild ride, and it's not over yet.