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 13, 2007

TANDY BRANDS ACCESSORIES, INC.

(Exact name of registrant as specified in charter)

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

690 East Lamar Blvd., Suite 200
Arlington, Texas 76011

(Address of principal executive offices and zip code)

(817) 265-4113

(Registrant’s telephone number, including area code)

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 (see General Instruction A.2. below):

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.

     Pursuant to Item 2.02 of Form 8-K, the information contained in Item 9.01(d) and this Item 2.02 is furnished to, but not filed with, the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and, therefore, shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.

     On November 13, 2007, the Company issued a press release announcing its financial results for the quarter ended September 30, 2007. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01(d) Exhibits.

     Exhibit 99.1 Press Release, dated November 13, 2007.

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 13, 2007	By:	/s/ J.S.B.Jenkins
		J.S.B. Jenkins
		President and Chief Executive Officer

EX-99.1

Exhibit 99.1

Tandy Brands Accessories, Inc.	Investor Relations:
J.S.B. Jenkins	Integrated Corporate Relations
President/Chief Executive Officer	Bill Zima (203) 682-8200
(817) 548-0090	Media Relations:
britt_jenkins@tandybrands.com	Monarch Communications, Inc.
	Jeff Siegel (516) 569-4271

TANDY BRANDS REPORTS FIRST QUARTER 2008 FINANCIAL RESULTS

ARLINGTON, Texas—November 13, 2007—Tandy Brands Accessories, Inc. (Nasdaq GM:TBAC) today announced financial results for the quarter ended September 30, 2007.

For the first quarter of fiscal 2008, net sales were $39.5 million compared to $57.2 million in the first quarter of fiscal 2007. This decline was due to the previously disclosed and continuing slowdown in replenishment orders from one of our largest customers as a result of their inventory management program and lower sales to other customers in a challenging retail environment. The Company reported a net loss of $1.7 million, or $0.25 per diluted share, compared to net income of $2.8 million, or $0.41 per diluted share, reported in the first quarter of fiscal 2007.

J.S.B. Jenkins, President and Chief Executive Officer, commented, “We are disappointed with our first quarter performance. We continue to face the challenges of the slowdown in orders from one of our key customers and a challenging retail environment. However, we anticipate that the remainder of fiscal 2008 should benefit from the strategic initiatives we have implemented over the past 22 months. Among these initiatives are the exit from low-margin categories and a focus on increasing our core lines of men’s, women’s and boys’ accessories, and the move to shift manufacturing exclusively to our overseas partners which will result in lower production costs. Moreover, fiscal 2008 should benefit from the roll-out of our three newest licenses, Eileen West, Goodyear Tire and Geno d’Lucca. Across our operations, we see opportunities to add new doors, new products, and new licenses which will not only fuel our growth, but help to temper the seasonality of our business and improve our profitability,” concluded Jenkins.

Dividend Declared

The Board of Directors approved a quarterly dividend of $0.04 per common share payable January 18, 2008 to shareholders of record at the close of business on December 31, 2007. This is the Company’s 18th consecutive quarterly dividend and the fourth at the $0.04 per share level which was increased on February 1, 2007.

Credit Line Amendment

At September 30, 2007 the Company did not meet the leverage ratio and the fixed charge coverage ratio covenants required by its $75 million unsecured revolving credit facility due to the pretax loss for the quarter. The lenders have granted a waiver for this non-compliance in conjunction with certain amendments to the facility.

Conference Call Information

Investors and interested parties will have the opportunity to listen to management’s discussion of Tandy Brands’ first quarter results in a conference call to be held today, November 13, 2007, at 10:00 a.m. ET. The dial-in number for the conference call is 480-293-1744. A live webcast of the conference call will be broadcast at: www.viavid.net. A replay of the conference call will be available through November 20, 2007 and can be accessed by dialing 303-590-3030; conference pin code 3805160.

About Tandy Brands Accessories, Inc.

Tandy Brands Accessories, Inc. designs and markets fashion accessories for men, women and children. Key product categories include belts, wallets, handbags, suspenders, neckwear, gifts and sporting goods. 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.

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, 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.

TANDY BRANDS ACCESSORIES, INC.
Consolidated Statements of Operations
(in thousands except per share amounts)
(unaudited)

	Three Months Ended
	September 30
	2007			2006
Net sales	$	39,464		$	57,199
Cost of goods sold		26,634			36,172
Gross margin		12,830			21,027
Selling, general and administrative expenses		14,441			14,795
Depreciation and amortization		976			1,221
Total operating expenses		15,417			16,016
Operating (loss) income		(2,587	)		5,011
Interest expense		(280	)		(436	)
Royalty and other income		45			55
(Loss) income before income taxes		(2,822	)		4,630
Income taxes (benefit)		(1,087	)		1,801
Net (loss) income	$	(1,735	)	$	2,829
(Loss) earnings per common share	$	(0.25	)	$	0.42
(Loss) earnings per common share assuming dilution	$	(0.25	)	$	0.41
Cash dividends declared per common share	$	0.04		$	0.0275
Common shares outstanding		6,826			6,675
Common shares outstanding assuming dilution		6,826			6,864

TANDY BRANDS ACCESSORIES, INC.
Consolidated Balance Sheets
(in thousands)
(unaudited)

	September 30			June 30
	2007			2007
ASSETS
Current assets:
Cash and cash equivalents	$	3,573		$	4,076
Accounts receivable		33,226			31,357
Inventories		68,071			64,372
Deferred income taxes		3,662			3,454
Other current assets		3,716			3,879
Total current assets		112,248			107,138
Property and equipment		37,427			38,928
Accumulated depreciation		(27,918	)		(28,380	)
Net property and equipment		9,509			10,548
Goodwill		16,462			16,361
Other intangibles		4,707			4,882
Other assets		1,677			1,734
	$	144,603		$	140,663
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	15,984		$	16,903
Accrued expenses		4,618			6,439
Notes payable		13,000			6,069
Total current liabilities		33,602			29,411
Other liabilities:
Supplemental executive retirement obligation		1,681			1,587
Deferred income taxes		302			389
Other liabilities		2,589			1,369
Total other liabilities		4,572			3,345
Stockholders’ equity:
Common stock		6,962			6,912
Additional paid-in capital		34,194			33,616
Retained earnings		64,364			66,967
Other comprehensive income		1,854			1,326
Shares held by Benefit Restoration Plan Trust		(945	)		(914	)
Total stockholders’ equity		106,429			107,907
	$	144,603		$	140,663