Conn's Lowers Profit Outlook On Greater Bad Debt

BEAUMONT, Texas (AP) — Consumer electronics retailer Conn's Inc. cut its annual profit forecast Thursday, saying it expects to set aside more money to cover bad debt.

Conn's now expects a profit of $1.40 to $1.60 per share for the year, down from $1.75 to $1.85 per share. According to a Thomson Reuters survey, analysts were expecting $1.64 per share for the year ending Jan. 31.

The company increased its provision for bad debt to $2.7 million in the fiscal second quarter, from $333,000 a year ago. In morning trading, Conn's shares sank $1.45, or 11 percent, to $11.73.