Tandy Brands Accessories Inc., a Dallas-based accessories vendor, said Thursday that its second-quarter profits jumped significantly, due to expense reductions and a double-digit sales gain.
For the period ended Dec. 31, the company registered net income of $6.8 million, or 95 cents a diluted share, versus profits of $952,000, or 14 cents a share, in the year-ago quarter. Excluding a pretax gain and an income tax benefit, the firm said it recorded adjusted net income of $2 million, or 28 cents a diluted share, in the second quarter.
Revenue for the period rose 12.6 percent to $48.4 million from $42.9 million in 2008.
On the company call to analysts and investors, president and chief executive officer Rob McGeachy said that despite the difficult economy, “we’re confident we’re building a platform of growth.
Related Articles
You May Also Like
“We remain committed to growing our top line and remaining a leader in our industry,” he said.
Tandy has become “dramatically better at inventory management,” McGeachy said, noting that with the recent consolidation of its distribution operations into one facility combined with the relocation of its corporate headquarters into that facility, the company expects to save an additional $4 million to $5 million annually.
Net income for the first half totaled $7.9 million, or $1.11 a diluted share, versus a net loss of $328,000, or 5 cents a share, for the comparable period in 2008. Sales for the six months grew 10.3 percent to $85.5 million, from $77.6 million.
The seller of women’s, men’s and children’s accessories reiterated its guidance of an 8 percent to 12 percent sales boost over last year, which would translate to revenue of between $139.3 million and $144.5 million for 2010.
Among other initiatives since McGeachy was appointed ceo in October 2008, Tandy acquired Chambers Belt Co. last April.