Daily News
From Home Furnishing Business
Conn’s Stays Profitable Despite Double-Digit Sales Decline in Q2
August 30,
2022 by HFBusiness Staff in Business Strategy, Industry 
Despite a 19.4 percent decline in net sales and a 22 percent decline in same-store sales, retailer Conn’s Inc. eked out a profit of $2.1 million or 9 cents per share in the quarter ended July 31.
The retailer said furniture and mattress sales, which make up slightly more than 30 percent of total sales, were down 21 percent. Appliance sales, meanwhile, were down 10.9 percent and consumer electronics sales plunged 34.2 percent.
“Challenging macroeconomic conditions continued to pressure consumer spending during our second quarter, which disproportionately affected year-over-year sales to our financial access customer segment and sales of our discretionary product categories,” said Chandra Holt, CEO. “While we entered the second quarter with a cautious outlook for the remainder of the fiscal year, the retail environment has continued to deteriorate prompting us to accelerate our efforts to reduce operating costs, and lower capital expenditures as well continue to maintain conservative credit underwriting.”
In the same quarter last year, the retailer had net income of $347 million or $1.22 per share.
The company opened two new standalone stores during the second quarter of fiscal year 2023 bringing the total store count to 163 in 15 states and opened four store-within-a-store locations with Belk. During fiscal year 2023, Conn’s plans to open 10 to 12 standalone locations and 15 to 20 store-within-a-store locations.