Beaumont, Texas – Conn’s reported fiscal fourth-quarter profits
of $7.7 million, compared with a year-ago loss of $3.6 million.
Total revenue for the three months, ended Jan. 31, increased 3.7
percent to $226.7 million, and same-store sales rose 12.1 percent.
The regional furniture, majap and CE chain attributed the gains
to a greater mix of higher-margin furniture and mattresses, higher average
selling prices across all core categories, and increased sales of extended-service
agreements.
Adjusted operating income for Conn’s retail segment rocketed 343
percent to $9.3 million, excluding $5.1 million in costs for closing five
underperforming stores in January.
Operating income for the credit segment rose 82 percent to $12.2
million thanks to reduced portfolio balances, rising interest yields and lower
servicing costs, the company said.
For the full fiscal year, the company lost $3.7 billion on total
revenue of $808.8 million, a decline of 2 percent.
“We are pleased to report improved profitability in both our credit
and retail segments,” said chairman/CEO Theo Wright. The trend is continuing
into the current quarter, he noted, with combined February and March same-
store sales growing 16.1 percent and retail gross margin outpacing Q4 levels.
“Sales and gross margins
are increasing,” he said. “We are on track with our store opening plans” —
which call for five to seven locations in new markets this year — “and are
looking forward to returning to unit growth after a period of retrenchment.”
