Conn’s, Inc. (NASDAQ: CONN)
Shares of Conn’s, Inc. rallied 22% before the opening bell on Thursday, after the company finished above Wall Street estimates for its first quarter of fiscal 2019.
The beat set up a positive move in the stock’s price during the morning trading session. Conn’s stock has gained 50% in the last twelve months, but has lost 28% since the start of the year. The stock was up $5.65, or 22.03% at 8:30 A.M.
CONN Earnings & Outlook
The company reported a profit of $12.7 million, or $0.39 per share, compared to a loss of $2.6 million, or $0.08 per share, in the year-ago quarter.
Adjusted earnings per share came to $0.40, surpassing analyst consensus of $0.27. Sales climbed to $358.4 million compared to the prior-year figure of $355.8 million, and also above Wall Street estimate of $355.0 million.
The furniture retailer now expects same-store sales to be flat to up 3 percent during the second quarter, compared with analysts’ consensus of up 1 percent.
Conn’s CEO Comments
Conn’s chairman and chief executive officer Norm Miller said, “Fiscal year 2019 is off to an excellent start. First quarter retail results were driven by an improving same store sales trend. This included positive same store sales for the month of April, which is the first positive month of same store sales in over two years. In addition, retail results benefited from record first quarter retail gross margin.”
“Credit performance strengthened during the quarter, and our credit segment had its first quarter of operating income in four years. With our credit platform on a clear path towards improved financial results, we continue to focus on driving sustainable growth in our highly profitable retail segment. Our first quarter results reflect accelerating momentum throughout our business and we believe that fiscal year 2019 will be a strong year for the Company,” Miller concluded.
Conn’s, Inc. Company Profile
Conn’s, Inc. is a specialty retailer that engages in the provision of a selection of consumer items and related services across the United States.
It has two segments of operation, Credit and Retail. The company provides mattress and furniture, including bedroom, living room and dining room accessories.
It also offers specialty and traditional home appliances, such as washers, dishwashers, refrigerators, ranges, freezers, and dryers; consumer electronics, consisting of home theaters, televisions, portable audio equipment, Blu-ray players; and home office products comprising printers, computers, and accessories.
In addition, it provides medium and short-term financing solutions to its retail consumers; as well as product support services, including installation and next-day delivery services, product repair services, repair service agreements, and credit insurance products.
The company owned and operated 118 retail stores in South Carolina, Alabama, New Mexico, Arizona, Oklahoma, Colorado, Georgia, Nevada, Louisiana, Tennessee, Mississippi, Virginia, North Carolina, Texas.
The competitors of the company include Home Depot, Sears, Best Buy, Walmart, H.H. Gregg, Target, Costco, Sam’s Club, Mattress Firm, Rent-A-Center, Lowe’s, and Aaron’s. Conn’s, Inc. was established in 1890 and its headquarter are based in The Woodlands, TX. –Reuters