As it continues to implement turnaround initiatives, Conn’s reported a challenging second quarter, posting a net loss and comp declines.
For the second quarter ended July 31, Conn’s posted a net loss of $11.9 million, or 39 cents per diluted share, versus net earnings of $16.5 million, or 45 cents per diluted share, in the prior-year quarter.
Adjusted net loss for the quarter was $1.2 million, or four cents per diluted share, versus adjusted net earnings of $17.2 million, or 47 cents per diluted share, in the quarter a year earlier.
Conn’s reported that, excluding the effect of an April 2015 decision to exit video game products, digital cameras and certain tablets, comparable store sales for the quarter decreased 4.6%. Comps in Conn’s furniture and mattress operation decreased by 3.5%, home appliances decreased 2.3%, consumer electronics decreased 11.6% and home office decreased 9.6%.
Second quarter total retail revenues were $332.4 million up 2.1%, year over year, primarily driven by store openings partially offset by the comp decline.
“During the fiscal 2017 second quarter, we intensified our focus on returning to profitability by improving the performance of our credit operation and continuing to enhance our retail business. I am pleased with the initial progress our new leadership team has made this year as our turnaround initiatives take hold, and we create a strong foundation to support Conn’s long-term market opportunity,” said Norm Miller, Conn’s chairman, president and CEO. “While much of our attention recently has been focused on our credit business, we have not lost sight of Conn’s retail operation and the unique value we provide customers. Our retail business continued to perform well in the second quarter, with retail gross margin increasing 130 basis points from the fiscal 2017 first quarter.”
Conn’s operates more than 110 retail locations.