As part of its ongoing effort to streamline its business, Tandy Brands Accessories Inc. has inked a deal with Elie Tahari Ltd. to license and market products under its Elie Tahari, T Tahari and Tahari brands.
Under the terms of the multiyear license agreement, Tandy will have rights to “leverage its expertise in women’s belts” across all of Tahari’s divisions, which it hopes will drive distribution in upper and better department stores, as well as in specialty stores.
According the Dallas-based Tandy, the company expects to see a positive impact in its accessories business in the second half of the calendar year in 2012.
“This new license agreement is a significant addition for Tandy Brands, helping to further diversify our product offerings and providing us with meaningful growth opportunities in new channels,” Rod McGeachy, Tandy chairman, president and chief executive officer, said.
In July, Tandy said it was exiting noncore categories, such as eyewear and hunting gear, to focus on its key businesses in belts, small leather goods and gifts. It also anticipated cutting its current head count of about 400 full-time employees, to about 340 workers, or by 15 percent.
In the three months ended June 30, Tandy experienced a net loss of $8.4 million, or $1.21 a diluted share, versus a loss of $3.4 million, or 49 cents, in the final quarter of its 2010 fiscal year.
Stripping out $5.4 million in inventory write-downs and severance and other restructuring charges, the loss totaled $3.5 million. Quarterly sales slid 18.9 percent to $23.2 million from $28.7 million a year earlier.