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Conn's Q3 Sales Rise 12.4%

11/21/2011 12:01:00 AM Eastern

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.

The multiregional 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
closures this year.

Retail gross 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 and mattresses.

“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.

Service-contract commissions rose
32 percent, and furniture and mattress
comps skyrocketed nearly 69 percent
year over year. Unit volume rose nearly 41
percent and ASPs increased 14 percent.

The 70-store NATM dealer will announce
its Q3 earnings on Dec. 8.

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