Conn’s Inc. Announces Fourth Quarter and Fiscal Year Results

March 29, 2023  by HFBusiness Staff in Business Strategy, Industry   

“Our fourth quarter performance reflects the actions underway to refocus our efforts on serving our core credit constrained customers as we continue to face the impacts of macroeconomic headwinds and changes in consumer behavior.”

Providing multiple financing options is our key differentiator and we are pursuing profitable growth strategies aimed at enhancing the payment options we provide the tens of millions of consumers who visit our stores and website each year,” stated Norm Miller interim president and CEO.

“During the fourth quarter, we completed the final phase of our eCommerce platform conversion, which further enhances our digital capabilities and produced record fourth-quarter and full-year eCommerce sales. In addition, we recently began originating our first in-house lease-to-own transactions and we expect to expand this program throughout fiscal year 2024.”

“We believe our in-house lease-to-own program will be a transformative opportunity for the Company that has the potential to significantly benefit revenue and earnings in the coming years,” continued Mr. Miller.

“While we believe the economic landscape will remain challenging throughout the coming fiscal year, we are confident that the strategies we are pursuing will enable us to emerge from this period stronger, more focused and better positioned to create lasting value for our customers, employees, and shareholders,” concluded Mr. Miller.

Fiscal Year 2023 Financial Highlights as Compared to the Prior Fiscal Year (Unless Otherwise Noted):

§  Total consolidated revenue declined 15.6% to $1.3 billion, due to a 17.5% decline in total net sales, and a 6.6% reduction in finance charges and other revenues;

§  Same store sales decreased 20.5%;

§  eCommerce sales increased 10.8% to an annual record of $79.0 million;

§  Carrying value of re-aged accounts declined to $160.9 million from $182.0 million;

§  Credit spread was 910 basis points;

§  Reported a net loss of $2.46 per diluted share, compared to net income of $3.61 per diluted share for the same period last fiscal year; and

§  Reported an adjusted net loss of $2.00 per diluted share, compared to an adjusted net income of $3.71 per diluted share last fiscal year.

Fourth Quarter Financial Highlights as Compared to the Prior Fiscal Year Period (Unless Otherwise Noted):

§  Total consolidated revenue declined 16.8% to $334.9 million, due to an 18.7% decline in total net sales, and a 7.7% reduction in finance charges and other revenues;

§  Same store sales decreased 21.8%;

§  eCommerce sales increased to a quarterly record of $24.2 million;

§  Reported a net loss of $1.79 per diluted share, compared to net income of $0.26 per diluted share for the same period last fiscal year; and

§  Reported an adjusted net loss of $1.53 per diluted share, compared to an adjusted net income of $0.33 per diluted share for the same period last fiscal year