Outlook and Guidance
The Company increased earnings guidance for the fiscal year ending January 31, 2013, to diluted earnings per share of $1.30 to $1.40. The following expectations were considered in developing the guidance:
- Same stores sales up mid- to high-single digits;
- New store openings between five and seven;
- Retail gross margin between 32.0% and 34.0%;
- An increase in the credit portfolio balance;
- Provision for bad debts between 5.5% and 6.5% of the average portfolio balance outstanding;
- Selling, general and administrative expense, as a percent of revenues, between 28.5% and 29.5% of total revenues; and
- Interest expense to increase approximately $2.2 million over the remainder of fiscal 2013 as a result of the issuance of the fixed-rate notes discussed above on April 30, 2012.
Conference Call and Investor Conference Information
Conn’s, Inc. will host a conference call and audio webcast on Monday, June 4, 2012, at 10:00 A.M. CT, to discuss its earnings and operating performance for the quarter. A link to the live webcast, which will be archived for one year, and slides to be referred to during the call will be available at ir.Conns.com. Participants can join the call by dialing 877-754-5302 or 678-894-3020. Additionally, the Company has posted an updated investor presentation to its investor relations web page.
Conn’s management will also be presenting at the Piper Jaffray Consumer Conference in New York on Tuesday, June 5, 2012 at 4:35 P.M. ET. The presentation will be webcast and can be accessed via the following link: http://www.media-server.com/m/p/4567d4wf. Additionally, the presentation will be available for replay for 90 days following the live presentation and will be accessible via the above link or through ir.Conns.com.About Conn’s, Inc. The Company is a specialty retailer currently operating 64 retail locations in Texas, Louisiana and Oklahoma: with 22 stores in the Houston area, 14 in the Dallas/Fort Worth Metroplex, seven in San Antonio, three in Austin, five in Southeast Texas, one in Corpus Christi, four in South Texas, six in Louisiana and two in Oklahoma. The Company’s primary product categories include:
- Home appliance, including refrigerators, freezers, washers, dryers, dishwashers and ranges;
- Furniture and mattress, including furniture for the living room, dining room, bedroom and related accessories and mattresses;
- Consumer electronic, including LCD, LED, 3-D, plasma and DLP televisions, camcorders, digital cameras, Blu-ray and DVD players, video game equipment, portable audio, MP3 players and home theater products; and
- Home office, including desktop and notebook computers, tablets, printers and computer accessories.