Conn's 2Q Income Stumbles

September 2, 2014  by in Financial Reports, Furniture Retailing, Industry   

Net sales for the most recent quarter was $288.3 million, compared to $223.7 million in the second quarter of last year.

Net income for the first half of the year ended July 31 was $46.1 million, compared to $44.3 million for the first half of last year. Net sales for the six months ended July 31 were $566 million, compared to $433.2 million during the first half of last year.

“The retail segment had another outstanding quarter with higher gross margins, expanded operating margins, and the 12th consecutive quarter of increasing same store sales," said Theodore Wright, chairman and CEO. "Strategies to grow sales of our most profitable product lines are proving enduringly successful."

The retailer's gross margin increased 250 basis points to 40.8 percent in the second quarter, and the company attributed the increase to growth in higher margin furniture and mattress sales. Furniture and bedding contributed to 30.8 percent of total product sales and 42 percent of total gross profit in the current period. 

The complete earnings release can be found online.