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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
FEBRUARY 24, 2000
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TANDY BRANDS ACCESSORIES, INC.
(Exact name of registrant as specified in charter)
DELAWARE
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(State or other Jurisdiction of Incorporation or Organization)
0-18929 75-2349915
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(Commission File Number) (IRS Employer Identification No.)
690 EAST LAMAR BLVD.
SUITE 200
ARLINGTON, TEXAS 76011
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(Address of Principal Executive Offices) (Zip Code)
(817) 265-4113
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(Registrant's telephone
number, including area code)
NO CHANGE
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
On February 24, 2000, the Registrant issued a press release commenting
on its anticipated sales and earnings for the third quarter of fiscal 2000.
A copy of the press release is attached hereto as Exhibit 99 and is
incorporated herein by reference.
ITEM 7. EXHIBITS.
Exhibit 99 Press Release, dated February 24, 2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TANDY BRANDS ACCESSORIES, INC.
Date: February 25, 2000 By: /s/ J.S.B. Jenkins
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J.S.B. Jenkins, President
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EXHIBIT 99
TANDY BRANDS ACCESSORIES, INC.
FOR: TANDY BRANDS ACCESSORIES, INC.
CONTACT: J.S.B. Jenkins
President/Chief Executive Officer
Tandy Brands Accessories, Inc.
(817)548-0090
Naomi Rosenfeld/Carolyn Capaccio
Morgen-Walke Associates
PRESS CONTACT: Stacy Roth
Morgen-Walke Associates
(212)850-5600
FOR IMMEDIATE RELEASE
TANDY BRANDS ACCESSORIES COMMENTS ON EXPECTED THIRD QUARTER
2000 RESULTS
ARLINGTON, Texas, Feb. 24, 2000 -- Tandy Brands Accessories, Inc. (Nasdaq: TBAC
- - news) announced today that, based on currently available information, it
expects that sales and earnings for the third quarter of fiscal 2000 ended March
31, 2000, will be below last year's levels. The Company expects third quarter
sales will be in the range of $32 million to $37 million compared to $38.2
million in sales reported in the third fiscal quarter of last year. Diluted
earnings per share for the third quarter of fiscal 2000 are expected to be in
the range of $0.05 to $0.12, versus $0.29 reported for the third fiscal quarter
in the prior year.
The company attributes this anticipated shortfall from expectations to certain
sales factors specific to the third quarter. January sales were below internal
estimates in part due to weak reorders as a result of soft holiday retail sales
which led to higher than expected retail customer inventories. Additionally, the
Company's women's accessories trend item sales are below the very strong hair
accessories sales experienced in the third quarter of the prior year. Lastly,
sales have been impacted by the discontinuation of business of several retail
customers as a result of industry consolidation, chain closures and
bankruptcies. As the third quarter is the Company's lowest sales volume quarter
of the year, it is anticipated that these top-line trends will have a
disproportionate effect on selling, general and administrative expenses as a
percent of sales.
Several factors, however, suggest that this quarterly sales disruption is likely
to be confined to the third quarter. Normal inventory replenishment sales levels
are expected to be reestablished in the fourth quarter as customer retail
inventories are drawn down through the balance of the third quarter. Also, Tandy
Brands' newly penetrated channels of distribution through drugstores and
supermarkets are performing on plan, and product rollouts are on schedule for
the balance of the fiscal year. Lastly, several new programs are on track for
fourth quarter startup, including new accessories programs at JCPenney (NYSE:
JCP - news) and Kohl's (NYSE: KSS - news), a travel accessories introduction,
the initial launch of Rolfs handbags, and an expansion of Spokes branded
accessories for juniors and young men in department stores.
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Britt Jenkins, President and Chief Executive Officer, commented, "While we are
clearly disappointed with this news, we strongly believe that the third quarter
trend will prove of short duration, as retail inventory sells through and the
market begins to gear up for Fall-season product deliveries of basic
replenishment items. Our team remains energetic and focused on strong current
execution and achieving success with new programs that are set for Spring
introduction and distribution channel expansion. Given Tandy Brands'
comprehensive product line, branded presence, top-notch design and sales talent,
and strong systems infrastructure, we continue to believe we are extremely well
positioned to leverage our leadership to gain market share and generate strong
long-term growth."
Tandy Brands Accessories will conduct a conference call to discuss this release
this afternoon, February 24, 2000, at 5:00 P.M. Eastern Standard Time. The
number to call to participate in the call is 973-628-7055.
Third quarter 2000 results will be officially released in late April.
Tandy Brands Accessories, Inc. designs, manufactures and markets fashion
accessories for men and women and children. Key product categories include
belts, wallets, handbags, suspenders, socks, scarves and hair accessories.
Merchandise is sold under various national brand names as well as private labels
to all major levels of retail distribution, including the Rolfs e-commerce web
site at www.rolfs.net.
Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
involve known and unknown risks and uncertainties, which may cause the Company's
actual results in future periods to differ materially from forecasted or
expected results. Those risks include, among other things, the competitive
environment in the industry in general and in the Company's specific market
areas, inflation, changes in costs of goods and services and economic conditions
in general and in the Company's specific market area. Those and other risks are
more fully described in the Company's filings with the Securities and Exchange
Commission.
