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what it is
Tandy Leather sells leather, tools, and kits to hobbyists and small businesses through 102 stores and several websites.
how it gets paid
Last year Tlf made $76M in revenue. leather materials was the main engine at $34M, or 45% of sales.
why it's growing
Revenue grew 2.6% last year. Gross margin at 58.2% mattered most because this business only posted a 7.2% operating margin for FY2024.
what just happened
The quarter looked huge on paper, with revenue jumping to $54M and EPS hitting $1.18.
At a glance
C++ balance sheet — some cracks in the foundation
30/100 earnings predictability — expect surprises
2.1x trailing p/e — the market's not buying it — or you found a deal
1.4% return on capital — nothing to write home about
$0.09 fy2024 eps est
xvary composite: 46/100 — below average
What they do
Tandy Leather sells leather, tools, and kits to hobbyists and small businesses through 102 stores and several websites.
This is a niche shelf-space business. You need weirdly specific leather, hardware, dyes, and tools in one place, and Tandy already has 102 stores across North America and Spain. Scale here means availability → having the odd part in stock → so what: your project keeps moving, and smaller rivals usually cannot match that breadth.
How they make money
$76M
annual revenue · their business grew +2.6% last year
leather materials
$34M
tools and hardware
$21M
kits, liquids, and supplies
$13M
production services and other
$8M
The products that matter
sells core leather inputs
Leather & Raw Materials
$38M · about half of segment mix shown here
this is the biggest revenue bucket at $38M. It matters because the whole brand starts with access to hides, leather, and specialty materials that casual competitors do not stock at scale.
core demand
sells repeat-use crafting gear
Tools & Hardware
$23M · roughly 30% of mix
at $23M, this category is the repeat-purchase side of the business. Once a customer starts a leathercraft hobby, tools and hardware are the follow-on spend.
repeat sales
brings beginners into the hobby
Kits & Other
$15M · roughly 20% of mix
this $15M bucket matters because kits are the on-ramp. If management wants growth beyond a stable hobby base, new-customer conversion likely starts here.
entry point
Key numbers
2.1x
trailing p/e
P/E → price compared with earnings → so what: you are paying about $2.10 for each $1 of profit, which is extreme even for a microcap.
7.2%
operating margin
Operating margin → profit after running the business → so what: one bad cost year can wipe out a lot of earnings.
$21M
long-term debt
Long-term debt → money owed over years → so what: the debt load is bigger than the roughly $19M market cap.
1.4%
return on capital
Return on capital → profit earned on the money tied up in the business → so what: management is getting very little out of each dollar invested.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $21M (53% of capital)
C++ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for TLF right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The quarter looked huge on paper, with revenue jumping to $54M and EPS hitting $1.18.
That surge sits next to a much weaker underlying annual picture. FY2024 revenue was $76M and FY2024 EPS was just $0.09, down sharply from $0.45 in FY2023.
$54M
revenue
$1.18
eps
58.2%
gross margin
the number that mattered
Gross margin at 58.2% mattered most because this business only posted a 7.2% operating margin for FY2024, so merchandise margin does the heavy lifting.
source: company earnings report, 2026
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What could go wrong
the #1 risk is mistaking one-time headquarters-sale profit for durable retail earnings power.
high
earnings normalization
FY2025 net income was $9.1M versus $0.8M a year earlier, but the jump was tied to the headquarters sale. If you value TLF on that headline profit, you are paying for an event that already happened.
FY2025 net income was $9.1M versus $0.8M a year earlier, but the jump was tied to the headquarters sale. If you value TLF on that headline profit, you are paying for an event that already happened.
high
new ceo execution
Johan Hedberg became CEO in Jan 2025. That makes the next few quarters unusually important because 2.6% revenue growth is not enough to prove the new strategy works.
Johan Hedberg became CEO in Jan 2025. That makes the next few quarters unusually important because 2.6% revenue growth is not enough to prove the new strategy works.
med
niche market ceiling
TLF sells into a specialized hobby and trade category. A 57.0% gross margin says the niche is defensible. A 1.4% return on capital says it may also be structurally limited.
TLF sells into a specialized hobby and trade category. A 57.0% gross margin says the niche is defensible. A 1.4% return on capital says it may also be structurally limited.
med
balance sheet flexibility
The company carries $21M in long-term debt, equal to 53% of capital, with a C++ balance sheet grade grade. That is manageable until operating results soften. Then it becomes a constraint.
The company carries $21M in long-term debt, equal to 53% of capital, with a C++ balance sheet grade grade. That is manageable until operating results soften. Then it becomes a constraint.
A $76.3M revenue business with $21M of long-term debt and 1.4% return on capital does not have much room for strategic mistakes.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
normalized earnings after the asset sale
The key question is what profit looks like without sold real estate in the mix. A cheap trailing multiple means very little if recurring earnings drop back toward the old baseline.
calendar
next earnings date
Mar 27, 2026 is the next checkpoint. You want to see whether core operating performance holds up once the headline effects from FY2025 roll off.
trend
revenue growth above the low single digits
Sales rose 2.6% in 2025. If that number cannot move meaningfully higher, the bull case becomes "cheap because it is small" rather than "cheap because it can grow."
risk
capital allocation after the $0.75 special dividend
The company already returned cash from the headquarters sale. What matters now is whether management reinvests for better operating returns or simply manages decline with decent optics.
Analyst rankings
earnings predictability
30 / 100
earnings can swing more than the average stock. in human-speak, analysts do not view this as a smooth, dependable compounding story.
balance sheet grade
C++
that grade means the balance sheet is workable, not bulletproof. For a microcap retailer, that distinction matters.
source: institutional data
Institutional activity
institutional ownership data for TLF is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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