Conn's Inc (NASDAQ: CONN) shares folded early Tuesday, on disclosing quarterly results.
The company, based in Woodlands, Texas, a specialty retailer of furniture and mattresses, home appliances, consumer electronics and home office products, and provider of consumer credit, revealed significant growth in earnings.
Second-quarter financial results were driven primarily by positive same store sales, the contribution of new store growth, record retail gross margin, and continued improvement in credit segment performance.
Net income for the three months ended July 31, 2018 was $17.0 million, or $0.53 per diluted share, compared to net income for the three months ended July 31, 2017 of $4.3 million, or $0.14 per diluted share.
Credit revenues were $88.2 million for the three months ended July 31, 2018 compared to $80.1 million for the three months ended July 31, 2017.
The Company opened two new Conn's HomePlus® stores in Texas during the first half of fiscal year 2019. In August, the Company opened one additional store in Virginia, bringing the total store count to 119 in 14 states.
During fiscal year 2019, the Company plans to open a total of seven to nine new stores in existing states to leverage current infrastructure.
Said CEO Norm Miller, "The initiatives to drive retail growth are starting to take hold and second quarter same store sales increased for the first time since the second quarter of fiscal year 2016, while total retail sales were up 3.5% over the prior year period. The momentum in our business is encouraging and we continue to believe fiscal year 2019 will be a strong year."
Shares opened Tuesday down $1.63, or nearly 4%, to $39.38
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