Conn’s, Inc. (NASDAQ:CONN), a specialty retailer of furniture, mattresses, home appliances, consumer electronics and provider of consumer credit, today announced its financial results for the first quarter ended April 30, 2014.
First-quarter fiscal 2015 significant items include (on a year-over-year basis unless noted):
- Consolidated revenues increased 33.6% to $335.4 million;
- Same store sales grew 15.6%, on top of a 16.5% increase in same store sales reported a year ago;
- Furniture and mattress sales increased 64.7% and accounted for approximately one-third of total product revenue in first-quarter fiscal 2015;
- Entered Denver market with opening of two Conn’s HomePlus ® stores;
- Retail gross margin improved 110 basis points to 41.4%;
- Adjusted retail segment operating income rose 44.8% to $39.5 million;
- Credit segment operating income declined $0.4 million to $11.3 million;
- The percentage of the customer portfolio balance 60+ days delinquent improved sequentially to 8.0% as of April 30;
- Credit segment provision for bad debts on an annualized basis was 8.2% of the average outstanding portfolio balance;
- Adjusted diluted earnings grew 31.1%, to $0.80 per share, from $0.61 per share; and
- Full-year fiscal 2015 guidance of $3.40 to $3.70 adjusted earnings per diluted share was reaffirmed.
“First quarter results met our expectations with solid performance in both the retail and credit operations,” stated Theodore M. Wright, Conn’s chairman and chief executive officer. “Same store sales rose 16% over the prior year with same store sales growth of 3% in the electronics category. This growth continued into May with same store sales increasing 13%. With the expansion of our product offerings and new store openings, furniture and mattress was our leading product category in the quarter. This favorable shift in product mix contributed to retail gross margin of 41.4% for the period.