Conn's profits jump as furniture, mattress sales rise 95%
Carole Sloan -- Furniture Today, December 5, 2013
THE WOODLANDS, Texas — Powered by a 35.1% same-store sales gain and a 95% gain in furniture and mattress sales, retailer Conn's said its third-quarter profits were more than double last year's third quarter.
The company, which operates 74 stores in Texas, Oklahoma, Louisiana, Arizona and New Mexico, said furniture and bedding accounted for 24.6% of retail net sales in the quarter - up from 19.3% in the same quarter last year - and came close to matching sales of appliances and consumer electronics.
Total revenues for the quarter ended Oct. 31 were $310.9 million, which included $53.8 million in finance charges and other revenues from its in-house credit operation. In last year's third quarter, total revenues were $206.4 million.
Net income was $24.4 million or 66 cents per share. That was up from $11.8 million or 35 cents per share in the same period a year ago.
Conn's said furniture and bedding sales totaled $63.2 million in the quarter, up from $32.2 million in the comparable period. Appliance sales totaled $66.5 million, while sales of consumer electronics were $68.4 million.
Sales in Conn's home office category, which includes computers and tablets, totaled $28.6 million.
"We achieved the highest quarterly revenue and net income on Conn's history," said Theodore Wright, chairman and CEO, noting that mattress unit volume increased 40% and the average unit selling price was up 19%.
For the nine months ended Oct. 31, total revenues were $832.6 million, an increase of 35.5% from $614.7 million in the first nine months of the previous fiscal year.
Nine-month profits were $65.7 million or $1.79 per share. That was up from $34.9 million or $1.05 per share in the comparable period.
The retailer didn't break out sales by product category for the nine-month period.
Conn's 74 locations include two stores opened since the third quarter ended. Five additional store openings are planned before the fiscal year ends on Jan. 31, and 15 to 20 new stores will be opened in the next fiscal year, the company said.
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