Tandy Brands Accessories (TBACQ) 8-K Tandy Brands Accessories Reports Fourth Quarter and Fiscal Year 2004 Results

EXHIBIT 99

Tandy Brands Accessories, Inc.	Investor Relations:
J.S.B. Jenkins	Integrated Corporate Relations
President/Chief Executive Officer	Bill Zima (203) 222-9013
(817) 548-0090	Media Relations:
britt_jenkins@tandybrands.com	Monarch Communications, Inc.
	Jeff Siegel (516) 569-6144

TANDY BRANDS ACCESSORIES REPORTS FOURTH QUARTER
AND FISCAL YEAR 2004 RESULTS

Quarterly Results at High End of Guidance Range

Issues EPS Guidance of $1.28 to $1.36 for Fiscal Year 2005

ARLINGTON, TX, August 16, 2004 – Tandy Brands Accessories, Inc. (Nasdaq NM:TBAC)today announced financial results for the fourth quarter and fiscal year ended June 30, 2004.

For the fourth quarter of fiscal 2004, net sales were $44.5 million, compared to $51.2 million in the prior period last year. Net income for the fourth quarter of fiscal 2004 was $151,000, or $0.02 per diluted share, compared to net income of $663,000, or $0.11 per diluted share, for the same period last year.

For the fiscal year ended June 30, 2004, net sales were $215.4 million, compared to $224.5 million for fiscal 2003. Net income for fiscal year 2004 was $7.0 million, or $1.10 per diluted share, compared to $7.1 million, or $1.18 per diluted share, for fiscal 2003. Net income for fiscal year 2003 included a first quarter non-cash charge, net of income taxes, of $581,000, or $0.10 per diluted share, related to the cumulative effect of the accounting change for the adoption of Statement of Financial Accounting Standards No. 142.

J. S. B. Jenkins, President and Chief Executive Officer, commented, “Our men’s accessories net sales for the quarter increased 8%, reflecting strong performance in our men’s and boy’s product categories. As anticipated, our strong fourth quarter men’s sales performance was offset by lower sales of mass merchant women’s accessories as a result of competitive market pressures and fewer fashion item-driven trends. Even so, our quarterly sales and earnings results met the upper range of management’s guidance for the fourth quarter.”

Mr. Jenkins continued, “On the balance sheet, we exceeded our expectations for the fiscal year. Our improved positions in accounts receivable and inventory allowed us to generate cash which was used to reduce debt significantly. We are proud of our efforts to reduce our net long-term debt position, which as of June 30, 2004, was $10 million.”

On July 20, 2004, the company paid its fourth quarterly dividend of $0.025 per share to shareholders. Additionally, the Board of Directors declared a quarterly dividend for the first quarter of fiscal 2005 of $0.0275, which reflects a 10% increase compared to the quarterly dividend for the same period last year. The dividend of $0.0275 per share will be payable on October 19, 2004, to shareholders of record as of September 30, 2004.

The company currently expects sales in the first quarter of fiscal 2005 to be in the range of $60 million to $65 million and earnings per diluted share to be in the range of $0.43 to $0.46. For fiscal year 2005, the company expects sales to be in the range of $220 million to $229 million and earnings per diluted share to be in the range of $1.28 to $1.36.

Mr. Jenkins concluded, “We are excited about our new business initiatives as well as the opportunities that lie ahead in our core accessories business. The initial responses to our newly acquired Eton gift accessory business and our new product line launches of men’s neckwear and jewelry have been well received by our customers. Overall, we believe that our portfolio of quality brands along with our new set of growth initiatives will put us on plan for solid sales and earnings growth for our 2005 fiscal year.”

Conference Call Information
Investors and interested parties will have the opportunity to listen to management’s discussion of Tandy Brands’ fourth quarter results in a conference call to be held today, Monday, August 16, 2004, at 10:00 a.m. ET. The dial-in number for the call is(973) 935-8516. A live webcast of the conference call will also be broadcast at: www.viavid.net. For those who are unable to listen to the live broadcast, an audio replay of the call will be available through Monday, August 23, 2004, and can be accessed by dialing(973) 341-3080, passcode #5062205.

About Tandy Brands Accessories, Inc.
Tandy Brands Accessories, Inc. designs, manufactures and markets fashion accessories for men, women and children. Key product categories include belts, wallets, handbags, suspenders, socks, scarves, gifts, sporting goods, and cold weather and hair accessories. 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.

(Tables to follow)

TANDY BRANDS ACCESSORIES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	June 30,						June 30,
	2004			2003			2004			2003
Net sales	$	44,469		$	51,226		$	215,420		$	224,487
Cost of goods sold		28,278			33,664			140,135			146,399
Gross margin		16,191			17,562			75,285			78,088
Selling, general and administrative expenses		14,660			14,830			57,519			58,450
Depreciation and amortization		1,005			1,038			4,055			4,267
Total operating expenses		15,665			15,868			61,574			62,717
Operating income		526			1,694			13,711			15,371
Interest expense		(390	)		(646	)		(2,357	)		(2,833	)
Royalty, interest and other income		72			41			128			101
Income before provision for income taxes and cumulative effect of accounting change		208			1,089			11,482			12,639
Provision for income taxes		57			426			4,445			4,922
Net income before cumulative effect of accounting change		151			663			7,037			7,717
Cumulative effect of accounting change for SFAS No. 142, net of income taxes		—			—			—			(581	)
Net income	$	151		$	663		$	7,037		$	7,136
Earnings per common share:
Before accounting change	$	0.02		$	0.11		$	1.13		$	1.30
Cumulative effect of accounting change		0.00			0.00			0.00			(0.10	)
	$	0.02		$	0.11		$	1.13		$	1.20
Earnings per common share-assuming dilution:
Before accounting change	$	0.02		$	0.11		$	1.10		$	1.28
Cumulative effect of accounting change		0.00			0.00			0.00			(0.10	)
	$	0.02		$	0.11		$	1.10		$	1.18
Dividends declared per share	$	0.025		$	0.00		$	0.10		$	0.00
Common shares outstanding		6,319			6,017			6,229			5,952
Common shares outstanding shares-assuming dilution		6,457			6,125			6,389			6,046

TANDY BRANDS ACCESSORIES, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

	June 30,			June 30,
	2004			2003
ASSETS
Current assets:
Cash and cash equivalents	$	6,086		$	3,814
Accounts receivable, net		33,427			41,672
Inventories		57,086			62,156
Deferred income taxes		4,009			4,757
Other current assets		1,613			1,250
Total current assets		102,221			113,649
Property, plant and equipment, at cost:
Property and equipment, at cost		34,581			31,885
Accumulated depreciation		(20,206	)		(17,261	)
Net property, plant and equipment		14,375			14,624
Goodwill, net of accumulated amortization		11,655			11,641
Other intangibles, less amortization		4,534			4,900
Other noncurrent assets		1,341			1,716
TOTAL ASSETS	$	134,126		$	146,530
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	14,224		$	14,522
Accrued expenses		6,828			9,996
Total current liabilities		21,052			24,518
Notes payable		10,000			30,000
Deferred income taxes		2,066			1,776
Other noncurrent liabilities		215			182
Total liabilities		33,333			56,476
Stockholders’ equity:
Common stock		6,306			6,019
Additional paid-in capital		26,948			23,802
Cumulative other comprehensive income and unearned compensation on restricted stock		(304	)		(1,196	)
Retained earnings		67,843			61,429
Total stockholders’ equity		100,793			90,054
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY	$	134,126		$	146,530