Beaumont, Texas - Higher
retail prices and increased advertising and sales staff helped Conn's revenue
rise 12.4 percent to $17.1 million for its fiscal third quarter, ended Oct. 31.
CE, majap and furniture chain also attributed the gains to an improved and
expanded furniture and mattress assortment and the positive impact on
same-store sales of six store
margin, which includes gross profit from sales of products and extended service
agreements, was about 28.5 percent for the quarter, up from 25.8 percent for
the year-ago period, due to a shift in the sales mix to higher-margin furniture
"We showed this
quarter that we are beginning to gain market share, and did so while
maintaining retail gross margins within our forecasted range," said Conn's
chairman Theodore Wright.
Broken out by
category, comp-store sales of CE rose 8.1 percent thanks to a 1.9 percent
increase in TV unit volume and a 3 percent increase in TV average selling
prices (ASPs). Home-theater comps also improved, but both were partially offset
by declines in camcorders, GPS devices and gaming hardware.
Majap comps soared
16.5 percent on a 3.1 percent increase in unit volume and a 9 percent increase
in ASPs. By category, laundry sales increased 14.4 percent, refrigeration was
up 20.1 percent, room air rose 7 percent and cooking sales fell 2.7 percent.
In contrast, home
office comps declined 1.9 percent due to a 20.1 percent drop in unit volume of
laptops, netbooks and desktop computers.
commissions rose 32 percent, and furniture and mattress comps skyrocketed
nearly 69 percent year over year thanks to enhanced displays, improved product
selection and increased promotional activity. Unit volume rose nearly 41
percent and ASPs increased 14 percent for the period.
The 70-store NATM
dealer will announce its third-quarter earnings on Dec. 8.
Beaumont, Texas - Higher retail prices and increased advertising and sales staff helped Conn's revenue rise 12.4 percent to $17.1 million for its fiscal third quarter, ended Oct. 31.