Tandy Brands Posts Narrower Loss In 4th Quarter

ARLINGTON, Texas (AP) ¿ Tandy Brands Accessories Inc. said Thursday it trimmed its loss in the fiscal fourth quarter as the company was better able to control expenses.

For the fiscal quarter ending June 30, the maker of accessories such as belts and wallets reported a loss of $2.5 million, or 36 cents per share, compared with a loss of $4.7 million, or 67 cents per share, for comparable quarter a year ago.

Revenue fell 12 percent to $26.4 million from $30.1 million in the fiscal 2008 quarter.

Tandy said its corporate reorganization implemented in January and new management team have had a "positive effect" on the company's performance, despite the trend of retailers limiting the number of suppliers they rely on during the recession.

Cost of goods sold fell 20 percent to $16.2 million, while total operating expenses were down 2 percent.

For the 2009 fiscal year, Tandy reported a loss of $15.1 million, or $2.18 per share, compared with a loss of $49.3 million for the fiscal year 2008 year. Revenue fell 14 percent to $129 million from $149.3 million.

The company said it would relocate its corporate headquarters to Dallas in the 2010 fiscal year, consolidating operations with a distribution facility located there.

Tandy said it agreed to acquire the private label business of Chambers Belt Co. and assume belt licenses of Wrangler Mass and Wrangler Western/Specialty for an undisclosed amount. The company said the transactions are "expected to be sizable contributors to revenue growth in fiscal 2010."

CEO Rod McGeachy said that the move, along with additional growth in the eyewear unit is expected to drive sales up 8 to 12 percent in the next fiscal year.

Shares of Tandy fell 9 cents, or 3.4 percent, to $2.60 Friday in morning trading.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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