Conn’s, Inc. (NASDAQ:CONN), a specialty retailer of home appliances, furniture, mattresses, consumer electronics and provider of consumer credit, today announced record financial results for the quarter ended October 31, 2013.
Significant items for the third quarter of fiscal 2014 include:
- Consolidated revenues increased 50.6% over last year to $310.9 million;
- Retail gross margin expanded 460 basis points from the same period last year to 40.1%,
- Adjusted retail segment operating income rose 163.3% over the prior-year quarter to $34.1 million;
- Credit segment operating income was $10.4 million, a 9.8% decrease from the prior-year quarter;
- Credit segment provision for bad debts on an annualized basis was 10.1% of the average outstanding portfolio balance this quarter;
- Diluted earnings per share of $0.66 on a reported basis, versus $0.35 per share last year; and
- Fiscal 2014 earnings guidance raised to $2.75 to $2.80 per diluted share on an adjusted basis.
“We achieved the highest quarterly revenue and net income in Conn’s history,” stated Theodore M. Wright, the Company's Chairman and CEO. “This sales trend continued into November with retail sales expanding 49%. November same store sales rose 32%.”
Mr. Wright continued, “Two new Conn’s HomePlus stores opened in November. All of our new stores are performing well. We expect to open five more stores by January 31, 2014 and add 15 to 20 new locations next fiscal year.”Retail Segment Results Revenues were $257.5 million for the quarter ended October 31, 2013, an increase of $89.8 million, or 53.6%, over the prior-year period. Significant sales growth was reported across all major product categories. On a sequential quarter basis, third quarter retail sales reflect the benefit of two stores opened in July 2013 and two additional stores opened during the quarter. The impact of new store openings was partially offset by the closure of two underperforming locations during the current quarter. With new store openings and the remodeling and relocation of existing stores, 40 stores were operating in the Conn’s HomePlus format at October 31, 2013.