Tandy Leather Factory, Inc. ( (TLF) ) has released its Q2 earnings. Here is a breakdown of the information Tandy Leather Factory, Inc. presented to its investors.
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Tandy Leather Factory, Inc., a specialty retailer headquartered in Fort Worth, Texas, specializes in leather and leatherworking products, distributing through 101 stores across the U.S., Canada, and Spain.
In the second quarter of 2025, Tandy Leather Factory reported revenues of $17.8 million, marking a 2.8% increase from the previous year. Despite this revenue growth, the company faced a net loss of $0.2 million, contrasting with a net income of $0.1 million in the same quarter of 2024. Gross margins improved to 59.5%, up from 58.0% in the prior year.
Key financial metrics for the quarter included an operating income of $0.1 million and an adjusted EBITDA of $0.3 million. Operating expenses rose by 5.5% to $10.5 million, attributed to the transition to leasing headquarters and distribution center spaces. The company ended the quarter with $16.4 million in cash and cash equivalents, reflecting proceeds from the sale of its corporate headquarters.
Looking ahead, Tandy Leather Factory aims to maintain its sales momentum into the third quarter, though it anticipates potential impacts from newly announced tariffs. The company remains cautious about operating losses for the full year 2025 due to ongoing operational changes.