NEW YORK (TheStreet) -- Shares of Conn's (CONN) are plummeting, sharply down 38.44% to $21.60 in early market trading, after the Texas-based electronics and home appliance retailer reported a third quarter loss and withdrew its earnings forecast for fiscal 2015 this morning due to losses from its credit-financing business, Reuters reports.
Its credit business provides in-house financing for customers with below-average credit scores and household income. However, CEO Theodore Wright said, "customer credit scores continue to deteriorate," MarketWatch reports.
The company said that there is no timetable set for completion of strategic alternatives, and announced the resignation of CFO Brian Taylor, Reuters added.
Must Read: Warren Buffett's 25 Favorite Stocks
For the third quarter, Conn's reported a net loss of $3.1 million, or a loss of 8 cents per share, lower compared to a profit of $24.4 million, or 66 cents per share a year ago.
Separately, TheStreet Ratings team rates CONN'S INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONN'S INC (CONN) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."