Tandy Leather Factory reported a net income of $9.1 million in fiscal 2025 driven primarily by the sale of its corporate headquarters, contrasting with an operating loss of $0.96 million reflecting operational pressures. Revenue grew modestly by approximately 1.7%, but escalating import tariffs on outsourced products from China and Brazil, combined with increased leasing costs following asset sales, compressed profitability. New CEO Johan Hedberg steered strategic adjustments including share repurchases and managing the balance between capital reinvestment and shareholder returns. Going forward, tariff developments, lease cost escalations, and operational efficiencies will be critical to sustaining growth amid a competitive discretionary retail environment.