Tandy Leather Factory, Inc. has released its financial results for the first quarter of 2025, showing a slight dip in revenue and a more notable fall in net income.
The company brought in $19.0 million in revenue this quarter, slightly lower than the $19.3 million it reported during the same period last year. Net income dropped to $0.3 million, down from $0.7 million in Q1 of 2024.
Gross margins also slipped, moving from 56.7% to 56.3%. This suggests the company faced higher costs to make its products. At the same time, operating expenses rose to $10.5 million, adding more pressure on overall profit.
Tandy Leather did, however, increase its cash reserves. The company now has $23.6 million in cash, up from $12.3 million last year. This boost comes from the sale of its corporate headquarters.
Another positive sign was better inventory management. Inventory levels were brought down from $35.6 million to $34.4 million.
Despite some financial pressures, the company outperformed its internal expectations for both sales and operating income, even while dealing with relocation challenges.
“While our first quarter results met expectations, we remain cautious about the impact of relocation and global trade developments on our future performance.”
Johan Hedberg, CEO, Tandy Leather Factory
CEO Johan Hedberg addressed future risks that could affect the company’s performance. He mentioned that the move to a new headquarters might lead to more expenses and warned that upcoming tariffs on imports could push retail prices up and reduce profit margins.
