Tandy Leather Factory had a stronger second quarter in 2026 with sales edging higher and profits improving significantly compared with the same period last year.
The company reported $18 million in revenue for the quarter ended June 30, 2026 up by 1.5% from $17.8 million a year earlier.
Gross profit also improved, reaching $11.7 million, compared with $10.6 million in Q2 2025. Gross margin increased to 64.8% from 59.5%, helped mainly by better pricing.
The improvement was even more noticeable at the operating level. Operating income rose to $0.5 million, compared with just $0.1 million a year earlier thats an increase of 722.9%.
They reported a net income of $0.4 million or $0.05 per diluted share. That compares with a net loss of $0.2 million or $0.02 per share in Q2 2025.
The company generated $0.9 million in EBITDA from operations during the quarter.
According to CEO Johan Hedberg, sales increased across both Tandy’s retail and ecommerce channels. The company also benefited from stronger gross margins which helped offset higher operating expenses.
Tandy has been spending on several areas of the business, including a new point-of-sale (pos) system and a new customer loyalty programme. It also incurred higher compensation and occupancy costs and invested in a new store in Waco, Texas which opened during the quarter.
The company ended June with $6.4 million in cash and cash equivalents, down from $16.1 million at the end of 2025.
The lower cash balance was mainly linked to a $6 million dividend payment made to shareholders during Q1 along with around $4 million spent on inventory purchases, the new POS system, the Waco store and investments in existing stores.
Overall Q2 2026 was a positive one for Tandy with modest sales growth accompanied by a much stronger improvement in profitability.
As of today Tandy Leather Factory operates 101 stores across 40 U.S. states and 6 Canadian provinces as well as one store in Spain. Its product range includes leather, leatherworking tools, buckles and belt accessories, leather dyes and finishes, saddle and tack hardware and DIY leatherworking kits.
