Conn's revenues rise 30%, earnings up 65%
September 13, 2013-- Furniture Today,
THE WOODLANDS, Texas - Fast-growing retailer Conn's Inc. said revenues jumped more than 30% and profits rose more than 65% in the quarter ended July 31.
Aided by rapidly increasing furniture and bedding sales, same-store sales jumped 18.4%.
The retailer said mattress unit sales rose 38% and the average unit selling price was up 11%, while furniture unit sales shot up 47% on a slight rise in the average unit selling price.
Total revenues for the quarter were $270.7 million, up 30.5% from $207.4 million in the same quarter last year. Furniture and bedding revenues totaled $50.7 million, or about 24.9% of total product revenue.
In addition to sales of furniture, bedding, appliances, electronics and computer equipment, Conn's has an in house credit operation that had revenues of $46.7 million in the quarter.
Net income for the quarter totaled $19.2 million or 52 cents per share. That was up from $11.6 million or 35 cents per share in the same quarter a year ago.
The company opened two stores during the quarter - boosting its total to 72 - and said it plans to open four more stores in the Phoenix market over the next several quarters.
Revenues for the six months ending July 31 rose 27.8% to $521.8 million, while net income was up 78.5% to $41.3 million or $1.13 per share.
Theodore Wright, chairman and CEO, said Conn's third quarter is off to a flying start, noting that same-store sales rose 31% in August. He said the company is reaffirming its earnings guidance for the fiscal year ending Jan. 31, projecting earnings per share of $2.50 to $2.65.
Same-store sales are projected to rise 15% to 20% for the year, and a total of 10 to 12 store openings are planned.
Most of Conn's stores are in Texas, but others are in Louisiana, Oklahoma, New Mexico and Arizona.
Earnings per share are fully diluted.
Quarter ended 7/31
Earnings per share
6 months ended 7/31
Earnings per share
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