Tandy Leather Factory Reports $17.3 Million Revenue in Q2 2024....

Author

Arshad Leathernews.org
August 11, 2024

Good Morning & Welcome to our weekly news round-up! Here, we bring you the entire week's global news, insights, data, and facts from the "leather, footwear, and leather goods" industry.

In a simplified and easy-to-understand manner, saving you time while keeping you informed and updated.

LEATHER NEWS

Tandy Leather Factory, Inc. has announced its financial results for the second fiscal quarter of 2024, revealing a slight decline in revenue and profitability compared to the same period in 2023.

Despite these challenges, the company managed to maintain a solid cash position, signaling resilience in a tough economic environment.

Highlights from Second Quarter 2024:

  • Revenues were $17.3 million, down 1.1% from 2023

  • Generated operating income of $63,000

  • Net income of $0.1 million, down from $0.5 million in 2023

  • Gross margins of 58.0%, down from 62.5% in 2023

  • Operating expenses $10.0 million, down 1.7% from 2023

  • Adjusted EBITDA* of $0.8 million

  • Ended quarter with $11.5 million of cash and cash equivalents

Jordan’s leather and textile industries have seen a significant resurgence in exports, with a 20.5% growth in the first five months of this year, pushing exports beyond JD635 million (approximately $890 million), accounting for 19.4% of the country's total industrial exports.

This recovery is largely driven by strong demand from the U.S., which absorbs 80% of these exports, and new inroads into European markets like the Netherlands and Belgium.

However, local sales have declined due to the ongoing Israeli aggression on Gaza, highlighting the need for the sector to diversify its export destinations and address domestic challenges to sustain growth.

In a significant move to rejuvenate Kenya’s leather industry, the government has designated Athi River as a central hub for the sector’s revival. Spearheaded by Salim Mvurya, Cabinet Secretary for the Ministry of Mining, Blue Economy, and Maritime Affairs, this initiative aims to restore Kenya’s global leather market prominence.

Mvurya emphasized the government's commitment to this project, citing Athi River’s strategic advantages—robust infrastructure, proximity to transportation networks, and access to raw materials—as key factors.

The plan involves collaboration with county governments, local businesses, and international investors to establish a comprehensive leather value chain. This effort is projected to generate thousands of jobs, enhance local skills, and significantly boost the economy, positioning Kenya to reclaim its status as a leading leather producer.

FOOTWEAR NEWS

The Indian Institute of Technology (IIT) Indore has unveiled groundbreaking smart shoes featuring Tribo-Electric Nanogenerator (TENG) technology, which converts kinetic energy from walking into electricity.

This innovation, delivered in an initial batch of 10 pairs to the Defence Research and Development Organiation (DRDO), enhances safety and efficiency for armed forces by providing real-time GPS and RFID location tracking, essential for both operational coordination and safety.

The shoes also generate electricity to power small devices, crucial for remote missions. Beyond military use, these shoes have potential applications in tracking elderly individuals with Alzheimer’s, monitoring school children, aiding climbers, and improving industrial worker attendance and athletic performance. This advancement highlights the transformative potential of TENG technology across various sectors.

In 2023, global footwear production fell by 6% to 22.4 billion pairs, as reported by the World Footwear Yearbook.

This decline, which excludes the pandemic years of 2020 and 2021, was driven by decreased consumption in major markets including the US, Asia, and the EU. Asia remains the primary production hub, contributing nearly 90% of global output, with China holding a dominant 55% market share and manufacturing 12.3 billion pairs.

Despite the overall drop, India increased its market share to 11.6%. Consumption also declined, with the US reducing its footwear consumption by 749 million pairs, while China's share dropped by 17.1%, and the EU saw a decrease of 399 million pairs. The industry's future recovery hinges on a rebound in consumer demand in these key regions.

In a significant move set to transform the footwear market, Kothari Industrial Corporation Ltd (KICL) has signed a 30-year licensing and distribution deal with France’s Royer Group for the Kickers brand, covering India and eight other countries including Qatar, UAE, and Bangladesh.

This partnership supports the Indian government's 'Make In India' initiative by focusing on local manufacturing, with plans for technology and design transfers from Royer Group to enhance production quality.

The agreement promises to introduce fashionable, comfort-focused Kickers products to the region, potentially boosting KICL’s market presence and strengthening India's role in the global footwear industry.

INDUSTRY INSIGHTS & ANALYSIS

Indian Billionaire Nikhil Kamath Praises Local Leather Shoes Brand, Garners 6.2 Million Views & 244,000 Likes, Says it is Better Than Gucci & LV.

I recently stumbled upon an Instagram reel featuring Indian billionaire Nikhil Kamath & Bollywood actor Ranbir Kapoor during a podcast.

In this engaging discussion, Ranbir asks Nikhil about his footwear.

Nikhil's response was truly inspiring, He proudly shared that his shoes are from a local Indian Leather footwear brand, “CUERO”, renowned for its access to

✔ The best leather &
✔ Exceptional craftsmanship

According to Nikhil, these shoes feel better than luxury brands like Gucci or Louis Vuitton.

Adding a touch of irony, Did you know? Ranbir's wife, Bollywood actress Alia Bhatt, is the first Indian global brand ambassador for Gucci?

By the way, this reel has garnered a whopping 6.2 million views, 244,000 likes & about 400 comments, surprisingly with the majority praising Indian leather & craftsmanship.

Interestingly, a few Gen Z commenters expressed concern about the leather industry, You could see comments like

❌ what ? Are you serious?
❌ You lost me at Leather, STOP USING LEATHER.
❌ Its 21st Century & people are moving towards Cruelty-Free
❌ Leather industry kills animals for their skins.

But, you know what? It was heartening to see many users correcting this misconception, explaining them that leather is a byproduct of the meat industry.

About the brand - "Cuero(dot)in" based in Pune, Maharashtra, is a third-generation luxury brand specializing in bespoke, made-to-measure handcrafted customized leather shoes.

Finally, I just want to say that It’s encouraging to see influential figures like Nikhil Kamath highlighting the quality of Indian leather & craftsmanship. This not only celebrates local talent but also educates consumers about the reality of the leather industry.

Thanks !

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Written & Published by Arshad Khan | Leathernews.org

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