CONN'S Posts Upbeat Q1 Profit, But Sales Miss Views

reported better-than-expected earnings for the first quarter, but the company's sales missed analysts' estimates. CONN'S reported quarterly net income of $15.7 million, or $0.43 per share, compared to $28.5 million, or $0.77 per share, in the year-ago period. Its revenue climbed 8.8 percent year-over-year to $365.1 million. However, analysts were expecting a profit of $0.41 per share on revenue of $368.53 million. The average estimate among 9 Estimize users was for earnings of $0.42 per share and revenue of $374.84 million. Its same store sales slipped 4.3 percent in the quarter. Total retail revenue climbed 7.5 percent to $298.6 million for the first quarter, while credit segment revenue gained 15.9 percent to $66.4 million. Furniture unit volume rose 12.4 percent in the quarter, while mattress unit volume gained 17.3 percent. Home appliance unit volume climbed 13.3 percent. Retail gross margin shrank 10 basis points to 41.3 percent. Adjusted retail segment operating income rose 9.3 percent to $43.2 million, while credit segment operating loss came in at $8.5 million. Theodore M. Wright, Conn's chairman and chief executive officer commented, "In the first quarter of fiscal 2016, the retail segment expanded with new store growth offset by declines in same store sales. Although greater than 60-day delinquency for the quarter is above prior year, delinquency rates have continued to improve sequentially as we have progressively tightened underwriting standards over the course of fiscal 2015 and our ability to resolve less than 60-day delinquency has remained stable." The company reaffirmed its outlook for the business for fiscal year 2016. CONN'S shares fell 3.92 percent to close at $35.54 yesterday.