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.