Tandy Leather Factory Inc reported that sales for the month of March were $4.4 million, down 17% from March 2007 sales of $5.3 million. Year-to-date sales are down 9% to $13.3 million in the current year from $14.5 million last year. Tandy's new UK store, which opened in mid-February, reported March sales of $30,000.

Retail Leathercraft posted a 4% sales decrease for March, with sales totaling $2.1 million compared to $2.2 million in March 2007. The 65 comparable stores posted a 9% same store sales loss for the month. The 7 stores opened in or after March 2007 added sales for the month of $108,000. Year-to-date sales for Retail Leathercraft are $6.3 million this year, equal to that of the same period in 2007. As of the end of March, same store sales were down 6% for the year.

Wholesale Leathercraft posted sales of $2.2 million for March, down 25% from March 2007 sales of $2.9 million. Within the Wholesale Leathercraft division, the wholesale stores' same store sales were down 17% for the month while the National Account group posted a March sales decline of 67%.

For the year to date, Wholesale Leathercraft sales are $6.7 million compared to $7.9 million in 2007, a loss of 15%. The comparable wholesale stores posted a 12% sales decline for the year, while National Accounts reported a 34% sales loss. Mid-Continent's year-to-date sales were $160,000, down 11% from the same period in 2007.

Chief Executive Officer and President, Ron Morgan, commented, "In light of the difficult retail environment and the uncertainties in the U.S. economy overall, we are not really surprised with our March sales results. While there aren't too many good things to say about our sales in general, there are a few bright spots: Our Canadian stores continue to achieve sales gains which leads me to believe that their economy isn't struggling as much as the U.S. yet.

Our UK store's sales are encouraging, especially when you consider that we have not yet started a local advertising program there. It's really too early to tell, but I think we are going to look back at the timing of our international expansion and know that the decision was a good one.

We realize that our sales are disappointing as we all like top-line growth. However, we can and expect to be profitable, even when sales are tough. As we have emphasized during the last few months, expense control will be the key to success and survival during the current economic environment."

Shannon Greene, Chief Financial Officer and Treasurer, added, "Looking at our balance sheet at February 29, we had $8.5 million of cash on hand (up $1.7 million from year-end), which constitutes more than 28% of our current market cap, and we decreased our investment in inventory by $1.5 million from year-end 2007.

I expect our March balance sheet to look similar. We recognize that we are in a tough retail environment. Despite the circumstances, economic or otherwise, we believe strongly in the long-term potential of this company and will do what it takes to be successful."