BEAUMONT, TEXAS –
Conn’s reported higher
revenues, but a net loss for its fiscal fourth quarter,
ended Jan. 31, and plans to close seven stores.
Total revenues were $213.4 million, up 2.9 percent
from the same period in the prior fiscal year. The net
loss was $3.4 million compared with the prior year’s
net profit of $1.7 million.
Same-store sales increased 5.2 percent during
the fourth quarter, as compared with a 31.7 percent
decrease in the same quarter in the prior fiscal year.
Conn’s said the increase in sales during the quarter
was driven largely by growth in the CE, furniture and
mattresses categories. Due to lower-than-expected
sales, Conn’s has decided to exit certain product
lines in its track category and, as a result, has recorded
an inventory charge of $1.7 million related to
these slow-moving, aged products.
Retail segment loss before income taxes was
$700,000 for the quarter, as compared with a loss of
$1.4 million for the same quarter in the prior fiscal year.
The current quarter loss included a long-lived asset
impairment charge of $2.3 million, as a result of the
planned closure of five store locations and the previously
mentioned $1.7 million inventory write-down.
Retail gross margin decreased to 22.8 percent for
the quarter, as compared with 23.5 percent for the
same period in the prior fiscal year.
Credit segment loss before income taxes was
$3.5 million for the quarter, as compared with income
of $2.1 million for the same quarter in the prior
fiscal year.
Additionally, Conn’s recently completed a strategic
review of its store locations, and is completing plans
to close five underperforming locations and allow the
leases to expire on two additional locations that are
not performing up to its expectations, the chain said.
Conn’s will close during fiscal year 2012 two stores
in Austin, one store in San Antonio, and four stores
in Dallas, Texas.
