UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of earliest event reported):  February 9, 2010


Conn's, Inc.
(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of

incorporation)

 

000-50421

(Commission File Number)

06-1672840

(IRS Employer

Identification No.)

3295 College Street

Beaumont, Texas

(Address of principal executive offices)

77701

(Zip Code)

Registrant's telephone number, including area code: (409) 832-1696


Not applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Item 2.02  Results of Operations and Financial Condition.

On February 9, 2010, the Company issued a press release announcing its net sales results for the quarter and fiscal year ended January 31, 2010.

The press release also contains the announcement of the Company’s conference call and audio webcast to be conducted on March 25, 2010, at 10:00 A. M. Central Daylight Savings Time, from the Company’s corporate headquarters.

A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01(c) Exhibits.

Exhibit 99.1        Press Release, dated February 9, 2010.

All of the information contained in Item 2.02 and Item 9.01(c) in this Form 8-K and the accompanying exhibit shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CONN'S, INC.

 

 

Date:

February 9, 2010

By:

/s/ Michael J. Poppe

Name:

Michael J. Poppe

Title:

Chief Financial Officer

Exhibit 99.1

Conn’s, Inc. Reports Net Sales Results for the Quarter Ended January 31, 2010

BEAUMONT, Texas--(BUSINESS WIRE)--February 9, 2010--Conn’s, Inc. (NASDAQ/NM:CONN), a specialty retailer of consumer electronics, home appliances, furniture, mattresses, computers and lawn and garden products, today announced its net sales results for the quarter ended January 31, 2010.

Net sales for the quarter ended January 31, 2010, of $171.0 million, decreased $74.5 million, or 30.3%, after achieving a 22.3% increase in the same quarter of the prior fiscal year. Net sales represent total product sales, repair service agreement commissions and service revenues. Same store sales (sales recorded in stores operated for the entirety of both periods) decreased 31.7% for the quarter ended January 31, 2010, compared to a 12.5% increase in same store sales in the fourth quarter of the prior fiscal year. The sales comparisons were impacted by:

The Company improved its product gross margins to approximately 20% for the quarter ended January 31, 2010, as compared to the 18.5% experienced in the quarter ended October 31, 2009. Total revenues for the quarter, including revenues from finance charges and other, will be reported in the Company's earnings release and conference call scheduled for March 25, 2010. The following table presents the makeup and changes in net sales for the quarter:


  Quarter ended January 31,    
2010   % of Total   2009   % of Total Change % Change
(dollars in thousands)
Consumer electronics $ 67,620 39.6 % $ 109,887 44.8 % $ (42,267 ) -38.5 %
Home appliances 41,020 24.0 % 52,295 21.3 % (11,275 ) -21.6 %
Track 31,492 18.4 % 40,883 16.7 % (9,391 ) -23.0 %
Furniture and mattresses 14,917 8.7 % 20,133 8.2 % (5,216 ) -25.9 %
Other   3,682 2.1 %   5,127 2.1 %   (1,445 ) -28.2 %
Total product sales 158,731 92.8 % 228,325 93.1 % (69,594 ) -30.5 %
 

Repair service agreement commissions

7,304 4.3 % 11,771 4.8 % (4,467 ) -37.9 %
Service revenues   4,920 2.9 %   5,312 2.1 %   (392 ) -7.4 %
Total net sales $ 170,955 100.0 % $ 245,408 100.0 % $ (74,453 ) -30.3 %

The following is a summary of the key items impacting net sales during the quarter:

Net sales for the fiscal year ended January 31, 2010, were $722.8 million, a decrease of $82.3 million, or 10.2%, as compared with the fiscal year ended January 31, 2009. Same store sales decreased 13.8% for the fiscal year ended January 31, 2010.

The Company will host a conference call and audio webcast on Thursday, March 25, 2010, at 10:00AM, CDT, to fully discuss its earnings and operating performance for the quarter. The webcast will be available live at www.conns.com and will be archived for one year. Participants can join the call by dialing 877-754-5302 or 678-894-3020.

About Conn’s, Inc.

The Company is a specialty retailer currently operating 76 retail locations in Texas, Louisiana and Oklahoma: with 23 stores in the Houston area, 20 in the Dallas/Fort Worth Metroplex, nine in San Antonio, five in Austin, five in Southeast Texas, one in Corpus Christi, four in South Texas, six in Louisiana and three in Oklahoma. It sells home appliances, including refrigerators, freezers, washers, dryers, dishwashers and ranges, and a variety of consumer electronics, including LCD, LED, plasma and DLP televisions, camcorders, digital cameras, computers and computer accessories, Blu-ray and DVD players, video game equipment, portable audio, MP3 players, GPS devices and home theater products. The Company also sells lawn and garden products, furniture and mattresses, and continues to introduce additional product categories for the home to help respond to its customers' product needs and to increase same store sales. Unlike many of its competitors, the Company provides flexible in-house credit options for its customers. In the last three years, the Company financed, on average, approximately 61% of its retail sales.


This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "could," "estimate," "should," "anticipate," or "believe," or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements will prove to be correct, the Company can give no assurance that such expectations will prove to be correct. The actual future performance of the Company could differ materially from such statements. Factors that could cause or contribute to such differences include, but are not limited to: the Company's growth strategy and plans regarding opening new stores and entering new markets; the Company's intention to update, relocate or expand existing stores; the Company's estimated capital expenditures and costs related to the opening of new stores or the update, relocation or expansion of existing stores; the Company's ability to introduce additional product categories; the Company’s ability to offer flexible financing programs; the Company's ability to fund operations, debt repayment and expansion from cash flow from operations, borrowings on its revolving lines of credit and proceeds from securitizations and from accessing debt or equity markets; the ability of the Company and the QSPE to obtain additional funding for the purpose of funding the receivables generated by the Company, including limitations on the ability of the QSPE to obtain financing through its commercial paper-based funding sources and its ability to maintain the current credit ratings of its securities; the ability of the Company and the QSPE to maintain compliance with the covenants in their financing facilities or obtain amendments or waivers of the covenants to avoid violations or potential violations of the covenants; the ability of the financial institutions providing lending facilities to the Company or the QSPE to fund their commitments; the effect on borrowing costs of downgrades by rating agencies or changes in laws or regulations on the Company’s or the QSPE’s financing providers; the cost of any renewed or replacement credit facilities; growth trends and projected sales in the home appliance and consumer electronics industry and the Company's ability to capitalize on such growth; the pricing actions and promotional activities of competitors; relationships with the Company's key suppliers; interest rates; general economic conditions; weather conditions in the Company's markets; delinquency and loss trends in the receivables portfolio; changes in the assumptions used in the calculation of the fair value of its interests in securitized assets; the outcome of litigation or government investigations; changes in the Company's stock price; and the actual number of shares of common stock outstanding. Further information on these risk factors is included in the Company's filings with the Securities and Exchange Commission, including the Company's annual report on Form 10-K filed on March 26, 2009. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, the Company is not obligated to publicly release any revisions to these forward-looking statements to reflect the events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

CONN-F

CONTACT:
Conn’s, Inc., Beaumont
Michael J. Poppe, 409-832-1696 ext. 3294
Chief Financial Officer