Conn's Posts Loss In Q2; Same Store Sales Down 15.4%

(RTTNews) - Conn's, Inc. (CONN) posted a second quarter net loss of $33.5 million, or $1.39 per share, compared to net income of $2.1 million, or $0.09 per share or adjusted net income of $1.0 million, or $0.04 per share, a year ago. The company noted that there were no non-GAAP adjustments for the three months ended July 31, 2023. On average, three analysts polled by Thomson Reuters expected the company to a loss per share of $1.53, for the quarter. Analysts' estimates typically exclude special items.

Second quarter total consolidated revenue declined 11.5% to $306.9 million, due to a 12.8% decline in total net sales, and a 5.5% reduction in finance charges and other revenues. Analysts on average had estimated $308.15 million in revenue.

Retail revenues were $246.3 million compared to $279.8 million, prior year, a decrease of 12.0%. The company said the decrease in retail revenue was primarily driven by a decrease in same store sales of 15.4%. The decline in same store sales resulted from lower discretionary spending for home-related products following several periods of excess consumer liquidity resulting in the acceleration of sales.

Norm Miller, Interim President and CEO, said: "Retail gross margin grew 230 basis points over the prior year period to the highest level in seven quarters, as we benefit from pricing and assortment changes we have made since the end of last year. In addition, credit quality remains stable and in line with our expectations."

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.