Conn's, Inc. Reports Net Sales for the Quarter Ended July 31, 2012
BEAUMONT, Texas--(BUSINESS WIRE)--
Conn's, Inc. (NASDAQ: CONN), a specialty retailer of home appliances,
furniture, mattresses and consumer electronics and provider of consumer
credit, today announced its net sales for the three months ended July
31, 2012.
Net sales were $171.7 million for the three months ended July 31, 2012,
an increase of $19.7 million, or 12.9%, from the same period last 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) for the quarter ended
July 31, 2012 rose 21.5% over the comparable prior-year period.
Theodore M. Wright, the Company's Chairman and CEO, commented, "We
opened our new store in Waco, Texas in mid-June. The new Conn's Home
Plus store delivered solid revenues in July — positioning it within the
top 10% of our 65 stores ranked on sales."
The retail gross margin, which includes gross profit from both product
and repair service agreement sales, was approximately 33.5% for the
quarter ended July 31, 2012, an approximate 470 basis point and 760
basis point increase over the same periods in fiscal 2012 and 2011,
respectively. Retail gross margins increased sequentially each month
within the current quarter. The following table presents net sales by
category and changes in net sales for the quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended July 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store
% change
|
|
|
|
|
|
|
2012
|
|
|
|
|
% of Total
|
|
|
|
|
2011
|
|
|
|
|
% of Total
|
|
|
|
|
Change
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Home appliance
|
|
|
|
|
$
|
51,922
|
|
|
|
|
30.3
|
%
|
|
|
|
|
$
|
51,479
|
|
|
|
|
33.9
|
%
|
|
|
|
|
$
|
443
|
|
|
|
|
|
0.9
|
%
|
|
|
|
|
7.2
|
%
|
|
Furniture and mattress
|
|
|
|
|
|
31,942
|
|
|
|
|
18.6
|
%
|
|
|
|
|
|
21,361
|
|
|
|
|
14.1
|
%
|
|
|
|
|
|
10,581
|
|
|
|
|
|
49.5
|
%
|
|
|
|
|
57.5
|
%
|
|
Consumer electronic
|
|
|
|
|
|
46,590
|
|
|
|
|
27.1
|
%
|
|
|
|
|
|
47,407
|
|
|
|
|
31.2
|
%
|
|
|
|
|
|
(817
|
)
|
|
|
|
|
(1.7
|
)%
|
|
|
|
|
4.6
|
%
|
|
Home office
|
|
|
|
|
|
14,436
|
|
|
|
|
8.4
|
%
|
|
|
|
|
|
10,727
|
|
|
|
|
7.0
|
%
|
|
|
|
|
|
3,709
|
|
|
|
|
|
34.6
|
%
|
|
|
|
|
41.5
|
%
|
|
Other
|
|
|
|
|
|
11,134
|
|
|
|
|
6.5
|
%
|
|
|
|
|
|
7,257
|
|
|
|
|
4.8
|
%
|
|
|
|
|
|
3,877
|
|
|
|
|
|
53.4
|
%
|
|
|
|
|
61.4
|
%
|
|
Total product sales
|
|
|
|
|
|
156,024
|
|
|
|
|
90.9
|
%
|
|
|
|
|
|
138,231
|
|
|
|
|
91.0
|
%
|
|
|
|
|
|
17,793
|
|
|
|
|
|
12.9
|
%
|
|
|
|
|
20.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repair service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
agreement commissions
|
|
|
|
|
|
12,355
|
|
|
|
|
7.2
|
%
|
|
|
|
|
|
9,945
|
|
|
|
|
6.5
|
%
|
|
|
|
|
|
2,410
|
|
|
|
|
|
24.2
|
%
|
|
|
|
|
35.7
|
%
|
|
Service revenues
|
|
|
|
|
|
3,273
|
|
|
|
|
1.9
|
%
|
|
|
|
|
|
3,811
|
|
|
|
|
2.5
|
%
|
|
|
|
|
|
(538
|
)
|
|
|
|
|
(14.1
|
)%
|
|
|
|
|
|
|
Total net sales
|
|
|
|
|
$
|
171,652
|
|
|
|
|
100.0
|
%
|
|
|
|
|
$
|
151,987
|
|
|
|
|
100.0
|
%
|
|
|
|
|
$
|
19,665
|
|
|
|
|
|
12.9
|
%
|
|
|
|
|
21.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following provides a summary of items influencing the Company's
major product categories during the quarter, compared to the same
quarter in the prior fiscal year:
-
Home appliance sales increased during the quarter reflecting a 25.0%
increase in the average selling price, partially offset by a 19.1%
decrease in unit volume. Approximately one-third of the unit sales
decline was attributable to the previous store closures. On a same
store basis, laundry sales increased 15.4%, refrigeration sales
increased 7.5% and cooking sales increased 17.4%. Milder temperatures
drove a 18.9% decrease in room air conditioner sales;
-
The continued growth in furniture and mattress sales was driven by
enhanced presentation, product selection and increased promotional
activity. The reported increase was tempered by the impact of previous
store closures.
-
Furniture same store sales growth was driven by a 36.5% increase
in unit sales together with a 19.3% increase in the average sales
price.
-
Mattress same store sales also increased reflecting a favorable
shift in product mix from the Company's decision to discontinue
offering low price-point products. As a result, on a same store
basis, the average mattress selling price rose 78.5% and was
partially offset by an 18.8% decline in unit volume;
-
Consumer electronic sales decreased modestly due to the previous store
closures. On a same store basis, sales rose 4.6% with growth in
televisions, home theater and audio sales partially offset by a
reduction in gaming hardware and accessory item sales. With the
Company's decision beginning late last year not to compete for
low-priced, low-margin television sales, the same store average
selling price for televisions increased 32.1%, while unit sales
declined 20.5%; and
-
Home office sales growth was driven by the expansion of tablet sales,
as well as a 26.8% increase in the average selling price of computers.
The reported increase was partially offset by the impact of store
closures, a reduction in computer unit volume and lower sales of
accessory items.
All of the above amounts are preliminary estimates and are subject to
change upon completion of the Company's quarterly financial statement
closing process. Actual results may differ significantly from the
preliminary estimates.
The Company will host a conference call and audio webcast on Wednesday,
September 5, 2012, at 10:00 A.M. CT, to discuss its earnings and
operating performance for the quarter. The webcast will be available
live at ir.Conns.com
and will be archived for one year. Participants can join the call by
dialing 877-754-5302 or 678-894-3020.
The Company will also be presenting at the 32nd Annual
Canaccord Genuity Growth Conference in Boston, Massachusetts on Tuesday,
August 14, 2012 at 10:00 A.M. ET. The presentation will be webcast and
can be accessed via the following link: http://wsw.com/webcast/canaccord6/conn/.
Additionally, the presentation will be available for replay for 90 days
following the live presentation and will be accessible via the above
link or through ir.Conns.com.
About Conn's, Inc.
The Company is a specialty retailer currently operating 65 retail
locations in Texas, Louisiana and Oklahoma: with 22 stores in the
Houston area, 14 in the Dallas/Fort Worth Metroplex, seven in San
Antonio, three in Austin, one in Waco, five in Southeast Texas, one in
Corpus Christi, four in South Texas, six in Louisiana and two in
Oklahoma. The Company's primary product categories include:
-
Home appliance, including refrigerators, freezers, washers, dryers,
dishwashers, ranges and room air conditioners;
-
Furniture and mattress, including furniture for the living room,
dining room, bedroom and related accessories and mattresses;
-
Consumer electronic, including LCD, LED, 3-D, plasma and DLP
televisions, camcorders, digital cameras, Blu-ray players, video game
equipment, portable audio and home theater products; and
-
Home office, including desktop and notebook computers, tablets,
printers and computer accessories.
Additionally, the Company offers a variety of products on a seasonal
basis, including lawn and garden equipment, 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 addition to third-party financing programs
and third-party rent-to-own payment plans. In the last three years, the
Company financed, on average, approximately 61%, including down
payments, of its retail sales under its in-house financing plan.
This press release contains forward-looking statements that involve
risks and uncertainties. Such forward-looking statements include
information concerning our future financial performance, business
strategy, plans, goals and objectives. Statements containing the
words "anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "plan," "project," "should," or the negative of such terms or
other similar expressions are generally forward-looking in nature and
not historical facts. Although we believe that the expectations,
opinions, projections, and comments reflected in these forward-looking
statements are reasonable, we can give no assurance that such statements
will prove to be correct. A wide variety of potential risks,
uncertainties, and other factors could materially affect our ability to
achieve the results either expressed or implied by our forward-looking
statements including, but not limited to: general economic conditions
impacting our customers or potential customers; our ability to continue
existing or offer new customer financing programs; the success of our
planned opening of new stores and the update of existing stores;
technological and market developments, and sales trends for our major
product offerings; our ability to fund our operations, capital
expenditures, debt repayment and expansion from cash flows from
operations, borrowings from our revolving credit facility, and proceeds
from accessing debt or equity markets; and the other risks detailed from
time-to-time in our SEC reports, including but not limited to, our
Annual Report on Form 10-K for our fiscal year ended January 31, 2012
and our quarterly report on Form 10-Q for the quarter ended April 30,
2012. 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, we are not obligated to
publicly release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this press release or
to reflect the occurrence of unanticipated events.
CONN-F
Conn's, Inc., Beaumont
Chief Financial Officer
Brian Taylor
(409) 832-1696 Ext. 3294
or
Investors:
S.M. Berger &
Company
Andrew Berger (216) 464-6400
Source: Conn's, Inc.
News Provided by Acquire Media
Close window | Back to top
