As it looks forward to putting the financial effects of Hurricane Harvey behind it, Conn’s reported second quarter earnings gains.
Net income for the three months ended July 31 was $20 million, or 62 cents per diluted share, compared with $17 million, or 53 cents per diluted share, in the quarter a year before. Net income, adjusted for any one-time charges, was $20 million, or 62 cents per diluted share, versus $18.3 million, or 57 cents per diluted share, in the year-previous quarter.
Conn’s surpassed a MarketBest-published analyst consensus diluted earnings per share estimate by 11 cents.
Comparable sales slipped 2.3% versus the quarter a year before but gained 0.4% in markets not affected by Hurricane Harvey, the company maintained.
Retail sales increased 3.3% to $306.1 million in the quarter year over year, driven by new store growth, partially offset by the comp decrease. Total revenues were $401.1 million versus $384.6 million in the year-prior period. Retail operating income was $36.1 million versus $39.2 million in the quarter a year earlier.
“Retail sales growth as a result of new store openings, strong retail profitability, and favorable credit performance drove record second quarter earnings of 62 cents per diluted share,” said Norm Miller, Conn’s chairman and CEO. “Our e-commerce sales are quickly ramping, and we are well positioned to serve our customers online as we expand our geographic footprint. During the second half of this fiscal year, we expect to lap the benefits Hurricane Harvey rebuilding efforts had on same-store sales, which has impacted the year-over-year sales comparison over the past four quarters.”