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DALLAS, May 14, 2013 (GLOBE NEWSWIRE) -- Tandy Brands Accessories, Inc. (Nasdaq:TBAC) today reported financial results for its fiscal third quarter and nine-month periods ended March 31, 2013 and provided an update on current events.
Third Quarter Results
Net sales for the third quarter were $19.6 million, which was down $4.3 million compared to the prior year third quarter. Net sales in the accessories segment were $18.3 million for the third quarter, a decline of $3.9 million from fiscal 2012. The decline reported in the accessories segment net sales was a result of lower levels of replenishment orders from the Company's largest customer in the current year. Gifts segment net sales decreased by $0.4 million to $1.3 million due to longer times to process and re-sell holiday season returns.
"Our third quarter net sales were impacted by abnormally low levels of replenishment sales to the largest customer in our accessories segment," said Rod McGeachy, President and Chief Executive Officer of Tandy Brands. "This decline was driven by their decision to delay new spring roll-outs early in the quarter and does not represent any material change in our market share."
Third quarter fiscal 2013 gross margin as a percentage of net sales was 26.7 percent, compared to 31.7 percent in the third quarter of fiscal 2012. Accessories segment gross margin was 30.6 percent, compared to 34.0 percent in the comparable prior year period. This decline was primarily due to higher sales to close-out customers in the current year in connection with the previously announced restructuring plan, and lower customer deductions in the prior year. Gifts segment gross margin was (28.3) percent, compared to 2.4 percent in the comparable prior year period, primarily due to an increased mix of sales of returned holiday products to close-out customers.