Conn's earnings double to $11.6 million

Jay McIntosh -- Furniture Today, June 4, 2012

BEAUMONT, Texas — Conn's first-quarter earnings more than doubled to $11.6 million as the 64-store retailer reported a 4.6% gain in revenues and a 17.8% jump in same-store sales.

The Beaumont-based retailer of appliances, furniture, mattresses and consumer electronics posted revenues of $200.9 million for the quarter ended April 30.

"We have seen a significant benefit from recently remodeled stores, as sales growth at those stores outpaced the double digit growth seen overall," said Theodore Wright, chairman and CEO.

Retail gross margin increased to 33.7% in the latest quarter from 30.5% in the comparable period a year earlier, largely because of a shift in product mix toward the higher-margin furniture and mattress category, the company said. Furniture and mattresses contributed about 30% of product gross margin in the quarter, Conn's said.

In an earlier release, the company said first-quarter sales in the furniture and mattress category were $28.4 million, up 17% from a year earlier.

Retail segment operating income rose to $10.8 million from $4.9 million a year ago, while the company's credit segment had operating income of $11.1 million, up from $9.9 million.

Earnings per share in the latest quarter amounted to 35 cents, up from 14 cents a year earlier.

Conn's raised its earnings forecast for the full fiscal year to a range of $1.30 to $1.40, up from earlier projection of $1.20 to $1.30.

The company, which closed 11 underperforming stores in 2012, also said it expects to open between five and seven new stores this fiscal year. Conn's has stores in Texas, Louisiana and Oklahoma.