Furniture, mattress sales boost Conn's sales 37.6% in recent quarter
February 7, 2012,
BEAUMONT, Texas — Furniture and mattresses were the fastest growing category for Conn's in the latest quarter, with sales up 37.6% to $27.7 million, the Beaumont-based specialty retailer reported.
Total retail segment sales for the 65-store company in the quarter ended Jan. 31 were $189.5 million, up 4.2% from the same quarter a year earlier. Same-store sales benefited from store closures completed during 2012, as other locations picked up some of the business, and were up 12.1%, the company said.
"The growth in furniture and mattress sales was driven by enhanced displays and product selection, and increased promotional activity, resulting in a 20.2% increase in unit sales of furniture and mattresses, combined with a 16.2% increase in the average selling price," the company said.
Consumer electronics sales in the period fell 15.4% to $76.8 million. The company said that was mainly because TV sales fell 30.6%, and the average selling price rose 23.4%, as Conn's decided not to compete for low-priced, low-margin business during the quarter - and specifically not on Black Friday.
Home appliance sales grew 15.6% to $44.8 million.
"Despite weakness in the consumer market for televisions, we were pleased to deliver double digit same-store sales growth for the second quarter in a row," said CEO Theodore Wright. "In addition to the same-store sales increase, we also increased our retail segment gross margin percentage by 500 basis points, or 21%."
The company will discuss its earnings and operating performance for the quarter in a conference call April 3.
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