8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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): November 10, 2009

TANDY BRANDS ACCESSORIES, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-18927	75-2349915
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

690 East Lamar Blvd., Suite 200 Arlington, Texas	76011
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (817) 548-0090

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On November 10, 2009, Tandy Brands Accessories, Inc. issued a press release announcing its financial results for the first fiscal quarter ended September 30, 2009. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Pursuant to the rules and regulations of the Securities and Exchange Commission, the press release attached hereto as Exhibit 99.1 is deemed to be furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.

Item 9.01(d) Exhibits.

Exhibit 99.1  Press Release, dated November 10, 2009.

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: November 10, 2009	By:	/s/ M.C. Mackey
		M.C. Mackey
		Chief Financial Officer

EX-99.1

Exhibit 99.1

Tandy	Investor Relations
Rod McGeachy	Beacon Street Group
Chief Executive Officer	Kenneth E. Pieper
817-548-0090	972-618-6924

Tandy Announces Fiscal 2010 First Quarter Results

• Net sales up 8 percent — first increase in 12 quarters

• Operating income improves by $1.1 million

• Net earnings of $0.15 per share versus year ago net loss of $(0.18) per share

Arlington, Texas (November 10, 2009) — Tandy Brands Accessories, Inc. (Nasdaq:TBAC) today reported results for the first quarter of fiscal 2010 ended September 30, 2009.

Tandy reported net income of $1.1 million, or $0.15 per diluted share, on net sales of $37.2 million, for the first quarter of fiscal 2010 versus a net loss of $(1.3) million, or $(0.18) per share, on net sales of $34.6 million for the quarter ended September 30, 2008. The current year results include a pretax bargain purchase gain of $1.4 million associated with the acquisition of certain assets of the Chambers Belt Company in July.

Operating income for the quarter was $69,000 versus an operating loss of $(988,000) for the first quarter of fiscal 2009. The company said the improvement was due to the increase in net sales, improved gross margins, and reduced operating expenses as a percentage of sales.

The increase in net sales was a result of solid contributions from all product categories, paced by growth in the gifts business. Gift sales in the quarter were $5.4 million compared to $3.4 million in the first quarter of fiscal 2009. Accessories segment sales improved by $581,000 to $31.8 million.

Quarter in Review

“The first quarter was a good start to the fiscal year, particularly given the current economic climate,” said Rod McGeachy, President and Chief Executive Officer of Tandy. “We are proud to report the first year-over-year sales increase in 12 quarters. Our gifts business continued to show significant sales growth, and more importantly, gross margin improvement. Also, the Chambers acquisition and new eyewear products have been immediately accretive to earnings and have helped to offset a decline in our core product sales due to softness in the retail environment.”

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Mr. McGeachy added that Tandy’s first quarter results were positively impacted by tight control over operating expenses and that focus will continue throughout fiscal 2010. “We expect to complete the move and consolidation of our corporate headquarters into our Dallas distribution center in December, resulting in significant annual savings in occupancy costs.”

Mr. McGeachy said that while Tandy’s retail partners maintain a very conservative approach to inventory replenishment as the holiday season approaches, the company is well-positioned to continue the net sales growth and profit improvement that was reported in the first quarter. “We will continue to focus investments on our highest return opportunities and maintain appropriate inventory levels. We reiterate our guidance of 8 to 12 percent sales growth and that we expect to post a significant improvement in profitability for fiscal 2010,” said Mr. McGeachy.

Financial Position

At the end of the first quarter, Tandy had $1.9 million of cash and borrowings of $16.5 million under its $27.5 million credit facility. In October 2009, Tandy announced that it had signed a new amendment to its line-of-credit financing facility with Comerica Bank extending the term to April 2011 while reducing the interest rate.

“This new financing is more than sufficient to meet our seasonal requirements, while also providing us the flexibility needed to achieve our longer-term growth objectives,” said Mr. McGeachy. “Our strong financial position continues to be a competitive advantage for us as our customers look to partner with suppliers who can support them in these challenging times.”

Conference Call

Tandy has scheduled a conference call for 8:30 a.m. ET on November 11, 2009. Parties interested in participating in the conference call may dial-in at 877-407-8035, while international callers may dial-in at 201-689-8035. A replay of the call will be available through November 30, 2009 and can be accessed by dialing 877-660-6853, or 201-612-7415 for international callers, and entering account number 286 and conference ID number 325579. The conference call will be broadcast live at www.InvestorCalendar.com.

About Tandy

Tandy is a leading designer and marketer of branded men’s, women’s and children’s accessories, including belts, small leather goods, eyewear, neckwear and sporting goods, and gifts. Merchandise is sold under various national brand names as well as private labels to all major levels of retail distribution, including the e-commerce web sites for Rolfs^® at www.rolfs.net and Sport Beads at www.sport-beads.com.

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Safe Harbor Language

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, 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.

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Tandy Brands Accessories, Inc. And Subsidiaries
Unaudited Consolidated Statements Of Operations
(in thousands except per share amounts)

	Three Months Ended
	September 30
	2009			2008
Net sales	$	37,193		$	34,617
Cost of goods sold		22,964			22,607
Gross margin		14,229			12,010
Selling, general and administrative expenses		13,194			12,429
Depreciation and amortization		677			569
Acquisition transaction costs		289			—
Total operating expenses		14,160			12,998
Operating income (loss)		69			(988	)
Interest expense		(268	)		(148	)
Other income		36			89
Acquisition bargain purchase gain		1,379			—
Income (loss) before income taxes		1,216			(1,047	)
Income taxes		113			233
Net income (loss)	$	1,103		$	(1,280	)
Income (loss) per common share	$	0.16		$	(0.18	)
Income (loss) per common share assuming dilution	$	0.15		$	(0.18	)
Cash dividends declared per common share	$	—		$	0.04
Common shares outstanding		6,930			6,988
Common shares outstanding assuming dilution		7,115			6,988

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Tandy Brands Accessories, Inc. And Subsidiaries
Unaudited Consolidated Balance Sheets
(in thousands)

	September 30			June 30
	2009			2009
Assets
Current assets:
Cash and cash equivalents	$	1,861		$	3,670
Accounts receivable		26,932			19,566
Inventories		36,097			23,022
Other current assets		7,184			8,282
Total current assets		72,074			54,540
Property and equipment		5,431			3,776
Other assets:
Intangibles		6,647			2,742
Other assets		893			908
Total other assets		7,540			3,650
	$	85,045		$	61,966
Liabilities And Stockholders’ Equity
Current liabilities:
Accounts payable	$	12,001		$	9,369
Accrued expenses		6,447			8,056
Acquisition earn out		3,767			—
Note payable		16,524			—
Total current liabilities		38,739			17,425
Other liabilities		2,999			2,825
Stockholders’ equity:
Preferred stock, $1.00 par value, 1,000 shares authorized, none issued		—			—
Common stock, $1.00 par value, 10,000 shares authorized, 7,058 shares and 7,037 shares issued and outstanding		7,058			7,037
Additional paid-in capital		34,961			34,867
Retained earnings (deficit)		1,047			(56	)
Other comprehensive income		1,364			984
Shares held by Benefit Restoration Plan Trust		(1,124	)		(1,116	)
Total stockholders’ equity		43,307			41,716
	$	85,045		$	61,966

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