Conn's posts gains of 30% in revenues, 65% in profits
Larry Thomas -- Furniture Today, September 5, 2013
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.