Beaumont, Texas - Conn's reported revenues down 17 percent and net income down by half in its fiscal first quarter compared with the prior year.
For the quarter, ended April 30, total revenues were $197.5 million, down 17.7 percent from the same period in the prior fiscal year when it reached $239.9 million.
Net income was $5.5 million, down from the prior year's $11.4 million.
Retail gross margin increased to 27.9 percent for the quarter, as compared with 23.7 percent for the quarter ended Jan. 31, and 25 percent for the same period in the prior fiscal year.
Same-store sales (revenues earned in stores operated for the entirety of both periods) decreased 19.7 percent during the first quarter of fiscal 2011, as compared with the same quarter in the prior fiscal year.
The sales results were impacted primarily by "more challenging economic conditions in the company's markets during the quarter, as compared to the same quarter in the prior year; and management's emphasis on improving retail gross margin while maintaining price competitiveness," according to a statement by Conn's.
Tim Frank, president/CEO of Conn's, said, "I am encouraged by the positive trends we saw across our retail and credit operations this quarter. I believe we can continue to deliver improved performance, especially in the third and fourth quarters, given our higher level of execution and the recent stabilization of the economic conditions in our markets. The comparison for the third and fourth quarters will be against the periods that we saw the steepest declines in the economic conditions in our markets last year."
Conn's currently operates 76 retail locations in Texas, Louisiana and Oklahoma and sells CE, major appliances, furniture, mattresses, and lawn and garden products.
Conn's ranked 35
with $360 million in CE sales during calendar year 2009.