Conn’s net revenue rose 19.5 percent to $269.9 million for the three months ending Jan. 31 while net income slipped 3.3 percent to $12.6 million.
The revenue gain included a 22.4 percent increase in net sales to $245.4 million and a 12.5 percent hike in finance charges and other revenue, to $29 million.
Net income reflected the impact of a $4.5 million non-cash decrease in the company’s interests in securitized assets.
The sales gains were propelled by the addition of seven new stores during the fiscal year and an increase in same-store sales of 12.5 percent, ostensibly driven by replacement sales of appliances and other big-ticket products in the wake of flooding by hurricanes Gustav and Ike last summer.
Gross margins increased to 22.2 percent from 20.7 percent during the prior quarter, and the delinquency rate for Conn’s credit portfolio dropped to 7.3 percent by Jan. 31, from 8.1 percent by Oct. 31. The annualized net charge-off rate increased slightly to 3.4 percent for the quarter, compared with 3.2 percent during the year-ago period.
The multi-regional appliance, electronics and furniture chain currently operates 75 stores after closing a San Antonio clearance center to accommodate the expansion of a credit-collection center in the same facility.
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