Tandy Brands CEO sees many strategic alternatives

By Alexandria Sage

LAS VEGAS, Aug 28 (Reuters) - Tandy Brands Accessories Inc (TBAC.O: Quote, Profile, Research, Stock Buzz) is looking at multiple options as it restructures its business, Chief Executive Britt Jenkins said on Tuesday at the Magic Marketplace apparel trade show.

The company, which said this month it hired investment bank Financo Co to help advise it, is focused on broadening its product categories and targeting a younger consumer to help boost sales even as the board reviews strategic alternatives.

"That covers a pretty broad spectrum," Jenkins said of the possibilities, adding that they include finding a strategic partner, making an acquisition to bring a strong brand and market share to the company, a share buyback, taking the company private, or increasing dividends.

"There's a pretty broad base here that will be reviewed. At the end of the day, you know you may not do any of them. Stay on course and you'll make the grade," he said.

The company shed lower-margin women's categories and turned a profit this past fiscal year, helped by lower expenses and improved gross margins.

Tandy, which had fiscal 2007 sales of $196 million, designs, makes and sells accessories such as belts, bags and wallets under its own brand names and private labels, and is the licensee for brands including Totes, Jones New York and Dockers. Major customers include Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz), J.C. Penney Co (JCP.N: Quote, Profile, Research, Stock Buzz), Target Corp (TGT.N: Quote, Profile, Research, Stock Buzz) and Kohl's Corp (KSS.N: Quote, Profile, Research, Stock Buzz).

Jenkins said growth would come from newly introduced lines targeting either younger customers wanting less-traditional-looking bags and accessories or higher-priced brands sold in higher-priced retailers such as Nordstrom Inc (JWN.N: Quote, Profile, Research, Stock Buzz) and Bloomingdale's, he said.

"Management is moving down the road looking at top-line growth," Jenkins said.