From Home Furnishing Business
Conn’s HomePlus® Releases 2022 Third Quarter Results
Conn’s, Inc., a specialty retailer of home goods, including furniture, appliances, and consumer electronics, announced its financial results for the quarter ended Oct. 31.
“Retail sales remain challenged by macroeconomic headwinds, which continues to impact discretionary spending, and lower year-over-year lease-to-own sales,” stated Norm Miller, interim president and CEO.
“As we navigate this environment, we are refocusing our efforts to better serve our core credit constrained customers. Conn’s differentiated credit offerings power a compelling model that we believe is needed now more than ever as consumers across the country are impacted by high inflation and growing economic uncertainty.”
Some of the financial highlights from the Third Quarter Financial Period as compared to the Prior Fiscal Year Period (unless otherwise noted); total consolidated revenue declined 20.8% to $321.2 million, due to a 24.0% decline in total net sales, and a 5.7% reduction in finance charges and other revenues, and same store sales decreased 27.0%.
Mr. Miller continued, “We aim to improve our financial performance by taking a disciplined approach to growth and profitability. This includes prudently controlling costs and capital expenditures, while pursuing investments that contribute to earnings.”
The credit spread a year ago was 980 basis points, and fiscal year-to-date the credit spread was 1,030 basis points. The value of account balances that have re-aged more than six months that they are carrying improved to $31.5 million, from $61.8 million.
“In addition, I am committed to execute against the Company's existing strategic priorities. These include strengthening our core retail business by expanding our assortment and testing partnerships; leveraging our credit business, including through the launch of an in-house lease-to-own offering; and accelerating eCommerce growth as we become a unified commerce retailer,” Mr. Miller continued.
Conn’s reported a net loss of $1.04 per diluted share, compared to net earnings of $0.60 per diluted share for the same period last fiscal year, and they reported a non-GAAP, adjusted net loss of $0.78 per diluted share, compared to adjusted net earnings of $0.60 per diluted share for the same period.
Finally, the company added two new standalone stores bringing the total number of stores at Oct. 31, to 165 and added 15 store-within-a store locations with Belk bringing the total number of Belk store-within-a-store locations to 19.
Mr. Miller concluded, “Conn's continues to have a unique value proposition, solid foundation, and compelling future. With a strong and committed leadership team focused on execution, I am confident we can turn around our financial and operating results.”