TLF · Tandy Leather Factory, Inc.

Tandy Leather Factory delivered first quarter 2026 results showing revenue growth to $19.7 million from $19.0 million year-over-year, driven by sales increases as noted by CEO Johan Hedberg. Gross margins improved significantly to 61.0% from 56.3%, primarily from pricing changes, lifting gross profit to $12.0 million. Operating expenses rose 11.2% to $11.6 million due to higher compensation, investments in operations and technology, and increased occupancy costs including rent for the headquarters and Fort Worth flagship store post-2025 move. Despite this, operating income edged up to $0.4 million from $0.3 million, with EBITDA from operations at $0.7 million. Net income fell to $0.2 million or $0.03 per share from $11.6 million or $1.35-$1.36 per share in the prior year, which benefited from the headquarters sale. Cash and equivalents declined to $10.1 million from $16.1 million, reflecting a $6.1 million special dividend payment of $0.75 per share, ongoing taxes from the 2025 sale, and relocation expenses. Inventory ticked up slightly to $33.7 million from $33.2 million at year-end 2025. Management expressed satisfaction with growth, margin expansion, and shareholder returns amid cost pressures.