Conn’s Q1 tops estimates; will open 17-20 stores

The Woodlands, Texas – Conn’s Inc. exceeded Wall Street estimates with both its net income and net sales performance during the first quarter of fiscal 2014. In addition, the retailer said it plans to open 17-20 new stores while closing 10 existing stores during the full fiscal year.

Net income climbed 28% to $28.47 million from $22.18 million in the same period a year earlier. Net sales rose 33% to $277.63 million, from $209.45 million. Same-store sales grew 15.6%. Higher pretax income helped boost net income totals, while the opening of nine new stores and extremely strong growth in furniture and mattress sales helped drive overall sales growth.

“First quarter results met our expectations with solid performance in both the retail and credit operations,” said Theodore M. Wright, Conn’s chairman and CEO. “Same-store sales rose 16% from the prior year with same store sales growth of 3% in the electronics category. This growth continued into May with same store sales increasing 13%. With the expansion of our product offerings and new store openings, furniture and mattress was our leading product category in the quarter. This favorable shift in product mix contributed to retail gross margin of 41.4% for the period.”

Conn’s expects a same-store sales increase of 5%-10% during the full fiscal year.

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