Conn’s Inc (NASDAQ:CONN) shares turn lower Tuesday morning, on the release of fiscal 2021 figures.
The Texas-based furniture store chain reported third-quarter FY21 sales growth of 21.3% year-on-year, to $405.46 million, beating the analyst consensus of $383.17 million.
The same-store sales increased 20.6% versus last year and rose 9.7% on a two-year basis.
EPS of $0.60 beat the analyst consensus of $0.59.
Said CEO Chandra Holt, "Retail sales momentum accelerated during the third quarter as same store sales increased 20.6% over the prior fiscal year period and were up 9.7% on a two-year basis.
"Strong retail sales reflect our success expanding our addressable market, as we serve customers across the spectrum of payment options, scale our digital platform and maintain in-stock inventory levels throughout our product categories."
The company also said eCommerce sales jumped 294.8% Y/Y to $19.2 million. Retail sales increased 28.8%, and the credit segment revenues declined 4.9%.
The costs and expenses for the quarter climbed 21.3% Y/Y.
The operating margin was 7.3%, and operating income for the quarter rose 22.5% to $29.6 million.
The company held $36.1 million in cash and equivalents as of October 31, 2021. The net debt of Conn amounted to $424 million.
"We are on track to deliver significant revenue growth and record earnings this fiscal year. I am excited by the direction we are headed and want to thank our team members for their continued hard work and dedication," concluded Ms. Holt.
Conn shares are trading lower by $1.20, or 5.4%, at $20.99 in early Tuesday trade.
