Conn's Net Income Soars
By Jeff Malester -- TWICE, 6/6/2005
Beaumont, Texas — A continuing focus on improving execution in merchandising, store operations, logistics, training and credit resulted in a 26.1 percent increase in net income at Conn's during the retailer's fiscal first quarter, hitting $9.8 million, up from a year-on-year $7.8 million.
As reported, Conn's recorded a 17.3 percent increase in total revenue during the first quarter, hitting $158.2 million, up from a year-on-year $134.9 million. Same-store sales rose 7.3 percent.
The company's revenue rise included net sales increases of 17.2 percent to $138.9 million, compared with a year-ago $118.5 million. Conn's recorded a 17.7 rise in finance charges, to $19.2 million in the first three months, up from $16.3 million in the same quarter in 2004. The dollar difference between the retailer's total revenue and net sales is its finance charges.
The specialty retailer of major appliances, consumer electronics, computers, mattresses and lawn and garden products continued its expansion into the Dallas/Fort Worth market during the first quarter, ended April 30, with the opening of one additional store, bringing its total in this market to nine as of April 30. Overall, Conn's operates 51 locations in Texas and Louisiana.
Three additional stores are under construction in the Dallas/Fort Worth market, while other units are in various stages of development in other locations. By the end of January 2006, Conn's expects to operate about 56 to 58 stores overall.
“We are certainly pleased with our same-store sales growth, as well as the contribution to total sales from our new stores,” said Tom Frank, chairman/CEO. “Our new store openings are on schedule, and we are confident in our strategy of controlled, profitable growth.”
Unlike many of its competitors, Conn's provides flexible in-house credit options for its customers. Historically, the chain has financed, on average, about 56 percent of its retail sales. Customer receivables are financed substantially through an asset-backed securitization facility, from which Conn's derives servicing fee and interest income from these assets.
No related content found.
VIEW ALL GALLERIES