Conn's (CONN) stock was up more than 20% Tuesday morning after reporting second-quarter earnings and revenue that beat analyst estimates.
The furniture and home appliances retailer said its adjusted earnings were 62 cents a share. Analysts were looking for 50 cents a share, or 51 cents a share on an adjusted basis, according to FactSet. Its second-quarter profit came in at $20 million, up from with $17 million a year ago.
Second-quarter revenue was $401.1 million, up 4.3% year over year, vs. estimates for $399.2 million (range $390.0 million to $406.0 million). Second-quarter comparable store sales were -2.3% compared to +0.30% a year ago, but the company said Hurricane Harvey impacted those numbers as it saw a decrease of about 9.3% in affected areas. The loss was partially offset by a 0.4% increase of areas not hit by the hurricane, the company said.
The specialty retailer with about 133 locations in the South plans to expand into Florida in the next fiscal year and open a distribution center there. It sees about 40 Conn's HomePlus stores once it fully expands in Florida.
For its current quarter, Conn said it expects retail sales growth between 4% and 8%.
The retailer repurchased close to 1.9 million shares at about $18.30 each in the second quarter. The stock has six buys, no holds and no sells ratings, according to Bloomberg.