UPDATE: Conn's Posts Q3 Loss, Announces Departure Of CFO

Shares of Conn's CONN tumbled more than 34% in pre-market trading after the company posted a loss in the third quarter and withdrew its 2015 forecast. The company also announced the departure of Brian Taylor, the Company's Chief Financial Officer. Conn's named Chief Accounting Officer Mark Haley as interim chief financial officer. Conn's posted a quarterly loss of $3.06 million, or $0.08 per share, versus a year-ago profit of $24 million, or $0.66 per share. Its revenue climbed 19% to $370 million, while sales at existing locations dropped 1%. However, analysts were estimating a profit of $0.68 per share on revenue of $377 million. Total retail sales surged 19% to $305 million, while furniture and mattress sales climbed 37% to $86 million. It credit revenue rose 22% to $65 million. Provision for bad debts climbed $49 million from the year-ago period to $72 million. Adjusted retail segment operating income jumped 11.9% to $38.1 million, while credit segment's operating income dropped $43.6 million to an operating loss of $33.2 million. Retail gross margin widened 50 basis points to 40.6%. Conn's opened 6 HomePlus® stores in three new markets during the quarter. For the current quarter, Conn's projects same-store sales to be flat to up 3%. Theodore M. Wright, Conn's chairman and chief executive officer commented, “In the third quarter, we drove significant growth and expanded gross margins in the retail segment, but these gains were more than offset by additional provisions for credit losses. Customer credit scores continue to deteriorate. Despite underwriting changes reducing the percentage of originations to customers with scores below 550, the proportion of customers in late stage delinquency with a score below 550 increased this year, though it has remained relatively constant since the end of the second quarter. As a result, delinquency rates have increased and losses are being realized at a faster pace than originally anticipated.” Conn's shares slipped 34.48% to $22.99 in pre-market trading.