Conn’s Inc (NASDAQ: CONN)
Texas-based furniture and mattress retailer, Conn’s Inc released upbeat revenue and profit for its fiscal second-quarter before markets opened on Tuesday.
The company came out with a net income that nearly tripled from the earlier-year period, with revenue also jumping to $384.6 million from $366.6 million.
Investors welcomed the solid performance, pushing CONN stock up 7.3% to $44 during premarket trade. The shares have surged nearly 75% in the past three months, while the S&P 500 has climbed 5.6%.
CONN Earnings & Outlook
The company said it had net income of $17.0 million, or $0.53 per share, a massive improvement from $4.3 million, or $0.14 cents a share, in the second quarter of the previous year.
After stripping out amortization and special items, Conn’s earned $0.57 per share. Net sales for the three months to July 31, 2018 totaled to $384.6 million, compared with $366.6 million in the year-ago period.
Analysts had projected adjusted earnings of $0.41 per share on net sales of $384.0 million, according to figures compiled by Thompson Reuters. Same-store sales rose 0.3%, marking the first positive quarter of same-store sales in three years, thanks to strong sales of home office gear and consumer electronics.
Conn’s CEO Comments
Chief Executive Officer Norm Miller commented, “We achieved many operating and financial milestones during the second quarter of fiscal year 2019, highlighted by significant growth in earnings to a second quarter record of $0.53 per diluted share. Second quarter financial results were driven primarily by positive same store sales, the contribution of new store growth, record retail gross margin, and continued improvement in credit segment performance. The initiatives to drive retail growth are starting to take hold and second quarter same store sales increased for the first time since the second quarter of fiscal year 2016, while total retail sales were up 3.5% over the prior year period. The momentum in our business is encouraging and we continue to believe fiscal year 2019 will be a strong year.”
Conn’s Inc Company Profile
Conn’s, Inc. operates as a specialty retailer of durable consumer goods and related services in the United States. The company operates through two segments, Retail and Credit. Its stores provide furniture and mattress, including furniture and related accessories for the living room, dining room, and specialty mattresses; home appliances, such as refrigerators, freezers, washers, dryers, dishwashers, and ranges.
It also offers consumer electronics comprising televisions, Blu-ray players, home theaters, and portable audio equipment; and home office products consisting of computers, printers, and accessories.
In addition, it provides short- and medium-term financing to its retail customers; and product support services, such as next-day delivery and installation services, credit insurance products, product repair services, and repair service agreements.
As of August 17, 2018, it operated 119 HomePlus retail locations in Alabama, Arizona, Colorado, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. Conn’s, Inc. was founded in 1890 and is headquartered in The Woodlands, Texas. –YahooFinance
