Leather goods provider The Leather Factory Inc has posted record revenues for January and February 2004, on the back of national account renewals with major retailers Michaels Stores and Wal-Mart.

The Texas-based company, which operates the Tandy Leather Company retail chain, said the "robust" internal growth would ensure it met its full-year earnings guidance.

"We are excited about continuing our relationships with two of our largest national account retailers of craft-related products," CEO Wray Thompson said.

"We are now only two months into 2004, and revenues were approximately $8 million, representing an almost 17 per cent increase over the first two months of 2002."

The Leather Factory plans to open 10 to 15 new retail stores this year.