Conn's Q2 Sales off 13.5%

September 8, 2011  by in UnCategorized   

By Home Furnishings Business in Financial Reports on September 9, 2011

Home furnishings, appliance and electronics retailer Conn's (NASDAQ-GS: CONN) reported second-quarter sales of $184.4 million, a 13.5 percent decrease.

Same-store sales fell of 12.8 compared with the same period last year.

The company reported a net loss of $3.4 million for the second quarter of fiscal 2012, ended July 31, compared with net income of $1.6 million for the second quarter of fiscal 2011.

An increase in higher-margin furniture and mattress sales as a percent of total product sales, improved gross margins in the consumer electronics, home appliances and home office categories and increased sales penetration of repair service agreements helped Conn's retail segment's retail gross margin increased to 28.9 percent in the current-year quarter, up from 25.7 percent in the same quarter of the prior year.

"We are pleased with our progress on improving margins and reducing our cost of capital," said Conn's Chairman Theodore Wright. "While softer industry conditions resulted in sales slightly below our expectations, the changes made to date position us to drive improved profitability."

During the quarter, Conn's completed the closure of three stores and the lease expired on one additional store, bringing the total number of stores ceasing operations during the current fiscal year to five. The company has begun its planning and preparation to open five to seven new locations during fiscal year 2013, all of which are expected to be in new markets.

Conn's Inc., Beaumont, Texas, is a specialty retailer currently operating 71 retail locations in Texas, Louisiana and Oklahoma.