Conn's, Inc. Reports Net Sales Results for the Quarter Ended July 31, 2010
BEAUMONT, Texas, Aug 05, 2010 (BUSINESS WIRE) -- 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 July 31, 2010.
Net sales for the quarter ended July 31, 2010, of $178.7 million, decreased $11.6 million, or 6.1%, as compared to the quarter ended July 31, 2009. Net sales represent total product sales, repair service agreement commissions and service revenues. Same store sales (sales recorded in stores operated for the entirety of both periods) decreased 6.5% for the quarter ended July 31, 2010. The same store sales trend, which improved each month of the quarter, with positive same store sales in July, was impacted by:
The Company improved its retail gross margin, which includes gross profit from both product and repair service agreement sales, to approximately 25% for the quarter ended July 31, 2010, as compared to the 23.6% experienced in the quarter ended July 31, 2009. Total revenues for the quarter, including revenues from finance charges and other, will be reported in the Company's earnings release and conference call scheduled for August 26, 2010. The following table presents the makeup and changes in net sales for the quarter:
|Quarter ended July 31,|
|2010||% of Total||2009||% of Total||Change||% Change|
|(dollars in thousands)|
|Furniture and mattresses||21,236||11.9||%||18,332||9.6||%||2,904||15.8||%|
|Total product sales||166,387||93.1||%||175,389||92.2||%||(9,002||)||-5.1||%|
Repair service agreement commissions
|Total net sales||$||178,674||100.0||%||$||190,299||100.0||%||$||(11,625||)||-6.1||%|
The following is a summary of the key items impacting net sales during the quarter, as compared to the same quarter in the prior fiscal year:
"I continue to be encouraged by the improving sales trends we have seen each month this year," said the Company's President and CEO, Tim Frank. "I believe we can continue to deliver improved sales and retail gross margin performance as we begin to compare against periods that were very challenging in our markets last year."
Net sales for the six months ended July 31, 2010, were $341.7 million, a decrease of $48.8 million, or 12.5%, as compared with the six months ended July 31, 2009. Same store sales decreased 13.3% for the six months ended July 31, 2010.
The Company will host a conference call and audio webcast on Thursday, August 26, 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, 3-D, 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:
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/A filed on April 12, 2010 and the Company's quarterly report on Form 10-Q/A filed on July 7, 2010. 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.
SOURCE: Conn's, Inc.
Conn's, Inc., Beaumont
Chief Financial Officer
Michael J. Poppe, 409-832-1696 Ext. 3294
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