Conn’s Inc. Announces First Quarter Financial Results

June 1, 2023  by HFBusiness Staff in Business Strategy, Industry   

“Our first quarter results were generally in-line with our expectations and reflect a challenging macroeconomic environment. Despite a difficult backdrop, we continue to refocus our efforts to better serve our core credit-constrained consumers, grow our eCommerce business and launch our in-house lease-to-own offering.”

“These efforts increased applications during the first quarter by 9.7% and are improving sales trends within our in-house and lease-to-own segments,” stated Norm Miller, Interim President and Chief Executive Officer.

“After last year’s successful eCommerce platform conversion and recent enhancements to our application process, eCommerce sales increased 24.6% during the first quarter. We also launched our new in-house lease-to-own offering during the first quarter.”

“This positive momentum gives us increasing confidence that the strategies we are pursuing will return the Company to growth and profitability. While we expect a challenging economic landscape to continue throughout the year, we believe we are on the right track to emerge from this period as a stronger, profitable company that is well positioned to serve the growing needs of our core credit-constrained customers,” concluded Mr. Miller.

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

~  Total consolidated revenue declined 16.3% to $284.6 million, due to an 18.3% decline in total retail sales, and an 8.2% reduction in finance charges and other revenues;

~  Same store sales decreased 20.1%;

~  eCommerce sales increased 24.6% to a first quarter record of $22.7 million;

~  Credit applications increased by 9.7% year-over-year, the first quarter of application growth in 16 months

~  Carrying value of re-aged accounts declined to $155.1 million from $167.1 million;

~  Reported a net loss of $1.47 per diluted share, compared to net income of $0.25 per diluted share for the same period last fiscal year; and

~  Reported an adjusted net loss of $1.52 per diluted share, compared to an adjusted net income of $0.25 per diluted share for the same period last fiscal year.

First Quarter Results

Net loss for the three months ended April 30, 2023, was $35.4 million, or $1.47 per diluted share, compared to net income for the three months ended April 30, 2022, of $6.2 million, or $0.25 per diluted share.

On a non-GAAP basis, adjusted net loss for the three months ended April 30, 2023, was $36.6 million, or $1.52 per diluted share, which excludes charges and credits related to the sale of a property partially offset by the impairment of assets associated with the decision to end the store-within-a-store test with Belk, Inc.