Specialty retailer Conn’s reported a 24 percent rise in net income for its fiscal second quarter, hitting $6.8 million, compared with $5.5 million in the year-ago three months.
Total sales for the second three months, ended July 31, reached $118.9 million, a 15.7 percent rise, as reported (see TWICE, Aug. 23, p. 6). When finance charges and other revenues are included, total revenue for the second quarter jumped 16.6 percent, hitting $136.6 million, up from a year-earlier $117.1 million.
Conn’s credits its higher second-quarter sales increases and jump in profitability, in part, to expansion of credit promotion programs in excess of one year.
Also, “The continuation of our efforts to push our primary business in appliances and electronics, and the emphasis that we have placed on track sales, bedding and lawn and garden categories, seems to be providing positive results, both at the top and bottom lines,” said Thomas Frank, chairman/CEO.
Net income for the six months at Conn’s, which operates 47 locations in Texas and Louisiana, jumped to $14.6 million, up from $10.6 million. Unlike many of its competitors, the retailer provides in-house credit options for its customers. Historically, it has financed over 56 percent of retail sales.
Net sales rose 13.4 percent in the first half, hitting $237.4 million, compared with $209.4 million. Same-store sales for the six months climbed 5.3 percent. Total first-half revenue, including finance charges and other revenues, increased 14.1 percent to $271.5 million, up from $237.9 million in the year-ago period.