Conn’s reported its first comparable sales gains in three years and the promotion of John Davis to the post of president of credit and collections.
Conn’s recorded second quarter net income of $17 million, or 53 cents per diluted share, versus $4.3 million, or 14 cents per diluted share, in the year-prior period. Adjusted net income, excluding one-time changes, was $18.3 million, or 57 cents per diluted share, versus $8.2 million, or 26 cents per diluted share, in the quarter a year previous.
Conn’s beat an analyst consensus estimate published by MarketBeat for adjusted earnings per diluted share of 41 cents in the quarter.
Total net sales were $296.3 million versus $286.4 million in the year-earlier quarter while total revenues, including finance charges and other sources, was $384.6 million versus $366.6 million, in the year-before quarter. Furniture and mattress sales increased 1.9% in the quarter to $97.1 million, while home appliance sales gained 2.7% to $91.5 million, consumer electronic sales gained 5.1% to $55.7 million and home office gained 8% to $19.3 million versus the period a year prior.
Comparable sales gained 0.6% in product results in the quarter year over year and 0.3% in products plus services results. In the quarter year over year, furniture and mattress comps slipped 2.3%, but home appliance comps advanced 0.4%, consumer electronics comps advanced 5.3% and home office comps gained 8.5%.
“We achieved many operating and financial milestones during the second quarter of fiscal year 2019, highlighted by significant growth in earnings to a second quarter record of 53 cents per diluted share,” said Norm Miller, Conn’s chairman and CEO. “Second quarter financial results were driven primarily by positive same store sales, the contribution of new store growth, record retail gross margin and continued improvement in credit segment performance. The initiatives to drive retail growth are starting to take hold, and second quarter same store sales increased for the first time since the second quarter of fiscal year 2016, while total retail sales were up 3.5% over the prior-year period. The momentum in our business is encouraging, and we continue to believe fiscal year 2019 will be a strong year.”
In addition, the company promoted John Davis to the post of president of credit and collections. Davis was founder and CEO of GFC Advisors, a consumer credit industry consultancy. Conn’s also announced the departure of Coleman Gaines, retail president and COO. Conn’s offered no reason for Gaines departure by post time.