What the changes say
- Tandy Leather updated its risk disclosures to reflect the completion of its Fort Worth headquarters relocation to Benbrook, Texas.
What changed since the prior 10-K
Dropped
- DroppedRisks Related to our Business and Business Strategy
Relocation of the Company’s headquarters and main distribution facility in 2025 might cause significant disruption to the Company’s business and operations
- DroppedRisks Related to the Macroeconomic Environment
While the impact of the COVID-19 pandemic has mostly receded, there are residual effects such as higher consumer prices and interest rates. Furthermore, another serious outbreak of coronavirus or other deadly disease could also have a material adverse effect on our business and liquidity
Reworded
- 56% rewrittenRisks Related to our Business and Business Strategy
Increases in the price of leather and other items we sell or a reduction in availability of those products could increase our cost of goods and decrease our profitability
The prior year section had no substantive text changes compared to this year.
- 42% rewrittenRisks Related to our Business and Business Strategy
We may be unable to sustain our financial performance or our past growth, which could have a material adverse effect on our future operating results
Updated to reflect 2025 sales improvements driven by campaigns and pricing, offset by macroeconomic pressures including tariff increases.
- 35% rewrittenRisks Related to our Business and Business Strategy
Disruptions in the operation of our U.S. distribution center or assembly facility could have an adverse effect on our ability to supply our retail stores, fulfill web orders and/or manufacture product, resulting in possible decreases in sales and margin
Updated to state that distribution operations have successfully relocated to Benbrook, Texas during 2025.
Was: Disruptions in the operation of our Fort Worth distribution center or assembly facility could have an adverse effect on our ability to supply our retail stores, fulfill web orders and/or manufacture product, resulting in possible decreases in sales and margin
- 23% rewrittenRisks Related to our Business and Business Strategy
Declines in foot traffic in our retail store locations could negatively impact our sales and profits
Added that consumer traffic declines could result in store impairment charges.
All 18 risk factors
Headings as the filing states them, in filing order.
Risks Related to our Business and Business Strategy
- 01The successful execution of our multi-year transformation and operational efficiency initiatives is key to the long-term growth of our business
- 02Our business is subject to the risks inherent in global sourcing activities
- 03Increases in the price of leather and other items we sell or a reduction in availability of those products could increase our cost of goods and decrease our profitability56% rewritten
- 04We may be unable to sustain our financial performance or our past growth, which could have a material adverse effect on our future operating results42% rewritten
- 05Competition, including internet-based competition, could negatively impact our business
- 06Declines in foot traffic in our retail store locations could negatively impact our sales and profits23% rewritten
- 07Our business could be harmed if we are unable to maintain our brand image
- 08Changes in customer demand could materially adversely affect our sales, results of operations and cash flow
- 09Our success depends, in part, on attracting, developing and retaining qualified employees, including key personnel
- 10Disruptions in the operation of our U.S. distribution center or assembly facility could have an adverse effect on our ability to supply our retail stores, fulfill web orders and/or manufacture product, resulting in possible decreases in sales and margin35% rewritten
Risks Related to Cash Flow and Capitalization
- 11If our cash from operations falls short and we are unable to raise additional working capital, we might be unable to fully fund our operations or to otherwise execute our business plan
Risks Related to Technology, Data Security and Privacy
- 12Failure to protect the integrity and security of personal information of our customers and employees could result in substantial costs, expose us to litigation and damage our reputation
- 13A cybersecurity incident and other technology disruptions could negatively affect our business and our relationships with customers
- 14Unreliable or inefficient information technology or the failure to successfully implement or invest in technology initiatives in the future could adversely impact operating results
Risks Related to the Macroeconomic Environment
- 15Our business may be negatively impacted by general economic conditions in the United States and abroad
- 16Foreign currency fluctuations could adversely impact our financial condition and results of operations
- 17We face risks related to the effect of economic uncertainty
Risks Related to Legal, Regulatory and Compliance
- 18Our success depends on the continued protection of our trademarks and other proprietary intellectual property rights
Other Tandy Leather Factory 10-Ks
- FY2024 10-K risk factors20 risks
Tandy Leather faces operational risk from relocating its Fort Worth headquarters and main distribution facility in the third quarter of 2025. The company is executing a multi-year transformation including new store concepts and commercial customer divisions. Sourcing leather and global goods exposes the company to tariffs, currency swings, and supply chain disruptions. General economic uncertainty and discretionary consumer spending directly impact retail sales and foot traffic.
Filed Feb 26, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.