Beaumont, Texas
– Conn’s said
price deflation and weak demand drove net sales down 30.3 percent to $171
million for its fiscal fourth quarter, ended Jan. 31.
The multiregional
electronics, appliance and furniture chain also reported a 31.7 percent decline
in same-store sales during the three-month period, which it attributed in part
to tough year-over-year comparisons.
The company cited “more
challenging economic conditions” in its markets compared with last year, when Conn’s also benefited from hurricane replacement sales, Circuit City’s dissolution, and an extra week of
Super Bowl-related purchases during the 2009 reporting period.
Conn’s said its sales results were also
impacted by the company’s tightened credit underwriting standards, the closure
of two outlet centers, and by reduced delivery charges and extended-warranty
commissions due to fewer purchases.
Broken out by
category, CE revenue declined 38.5 percent as a result of an 18.7 percent drop
in unit sales of flat-panel TVs and declines in average selling prices.
Dollar sales of
major appliances declined by 26 percent during the quarter on lower unit sales
in all appliance categories, though average selling prices increased slightly,
Small CE and
countertop appliance revenue declined 23 percent despite increased unit sales
of laptop and desktop computers and the introduction of netbooks, which were
offset by declines in the average selling prices of computers and declines in
sales of other small electronic and appliance products.
The chain also
cited a 26 percent decline in furniture/mattress revenue.
For the full fiscal
year, ended Jan. 31, net sales were $722.8 million, a decrease of $82.3 million,
or 10.2 percent, while same-store sales decreased 13.8 percent for the 12
months.
Conn’s will report its fourth-quarter and
full-year results on March 25.
