We are a retailer and wholesale distributor of a broad line of leather and related
products, including leather, leatherworking tools, buckles and adornments for
belts, leather dyes and finishes, saddle and tack hardware, and do-it-yourself
kits. We also manufacture leather lacing and some of our do-it-yourself kits.
We maintain our principal offices at 1900 Southeast Loop 820, Fort Worth, Texas
76140. Our common stock trades on the NASDAQ Global Market under the symbol "TLF."
Our company was founded in 1980 as Midas Leathercraft Tool Company, a Texas
corporation. Midas original business activity focused on the distribution of
leathercraft tools. In addition, the founders of Midas entered into a consulting
agreement with Brown Group, Inc., a major footwear retailer, as a result of
their proposal to develop a multi-location chain of wholesale stores known as
"The Leather Factory." In 1985, Midas purchased the assets related
to The Leather Factory stores from Brown Group, Inc., which then consisted of
six wholesale stores.
In 1993, we changed our name to The Leather Factory, Inc. We reincorporated
in the state of Delaware in 1994. In 2005, we changed our name to Tandy Leather
Factory, Inc.
We have expanded our wholesale store chain by opening new stores and by making
numerous acquisitions of small businesses in strategic geographic locations.
In 1996, we expanded into Canada by acquiring our Canadian distributor, The
Leather Factory of Canada, Ltd.
Our retail operations began in 2000, when we acquired the operating assets
of two subsidiaries of Tandycrafts, Inc. to form Tandy Leather Company. In 2002,
we opened our first retail store under the "Tandy Leather" name. Since
2002, we have acquired or opened 85 retail locations and closed three retail
stores, for a net of 82 retail stores.
In 2008, we began expanding outside of North America by opening one combination
wholesale and retail store in Northampton, United Kingdom. By 2009, we operated
30 wholesale stores, 75 retail stores, and one international combination wholesale
and retail store. Since 2009, we have closed two wholesale stores, opened nine
new retail stores, closed two retail stores, and opened two new international
combination wholesale and retail stores.
At December 31, 2015, we operated 28 stores located in North America operating
under the Leather Factory name and 82 stores located in North America operating
under the Tandy Leather name, and four combination wholesale and retail stores
operating under the Tandy Leather Factory name in the United Kingdom, Australia
and Spain.
Our business concept focuses on the wholesale distribution of leather and
related accessories to retailers, manufacturers, and end users. Our strategy
is that a customer can purchase the leather, related accessories and supplies
necessary to complete his project from a single source. The size and layout
of the stores are planned to allow large quantities of product to be displayed
in an easily accessible and visually appealing manner. Leather is displayed
by the pallet where the customer can see and touch it, assessing first-hand
the numerous sizes, styles, and grades offered. The location of the stores is
selected based on the location of customers, so that delivery time to customers
is minimized. A two-day maximum delivery time for phone, Internet and mail orders
is our goal.
We service our customers primarily through the operation of three segments.
We identify those segments based on management responsibility, customer focus,
and store location. The Wholesale Leathercraft segment consists of 28 wholesale
stores of which 25 are located in the United States and three are located in
Canada. As of March 1, 2016, the Retail Leathercraft segment consists of 83
Tandy Leather retail stores, of which 76 are located in the United States and
seven are located in Canada. Both of these segments sell leather and leathercraft-related
products. The International Leathercraft segment consists of all stores, wholesale
or retail, located outside of North America.
Our products are generally organized into 12 categories. We carry a wide assortment
of products including leather, lace, hand tools, kits, and craft supplies. We
operate a light manufacturing facility in Fort Worth, Texas whose processes
generally involve cutting leather into various shapes and patterns using metal
dies. The factory produces approximately 20% of our products and also assembles
and repackages products as needed. Products manufactured in our factory are
distributed through our stores under the TejasTM brand name. We also distribute
product under the Tandy LeatherTM, Eco-FloTM, CraftoolTM, and Dr. JacksonsTM
brands. We develop new products through the ideas and referrals of customers
and store personnel as well as the analysis of fads and trends of interest in
the market.
Our wholesale stores serve customers through various means including walk-in
traffic, phone, Internet and mail order. We also employ a distinctive marketing
tactic in that we maintain an internally-developed target customer mailing list
for use in our aggressive direct mail advertising campaigns. We staff our stores
with experienced managers whose compensation is tied to the operating profit
of the store they manage. Sales are generated by the selling efforts of the
store personnel, our direct mail advertising, our website (www.tandyleather.com),
and our participation at trade shows.
We offer an unconditional satisfaction guarantee to our customers. Simply stated,
we will accept product returns for any reason. We believe this liberal policy
promotes customer loyalty. We offer credit terms to our non-retail customers
upon receipt of a credit application and approval by our credit manager. Generally,
our open accounts are net 30 days.
Our products are generally organized into 12 categories. We carry a wide assortment
of products including leather, lace, hand tools, kits, and craft supplies. We
operate a light manufacturing facility in Fort Worth, Texas whose processes
generally involve cutting leather into various shapes and patterns using metal
dies. The factory produces approximately 20% of our products and also assembles
and repackages products as needed. Products manufactured in our factory are
distributed through our stores under the TejasTM brand name. We also distribute
product under the Tandy LeatherTM, Eco-FloTM, CraftoolTM, and Dr. JacksonsTM
brands. We develop new products through the ideas and referrals of customers
and store personnel as well as the analysis of fads and trends of interest in
the market.
Our products are generally organized into 12 categories. We carry a wide assortment
of products including leather, hand tools, kits, dyes, and finishes and stamping
tools.