Conn's CEO Cautions On Challenging Macro-Environment Throughout FY25; Stock Falls

Conn’s, Inc. CONN shares are trading lower on Thursday.

The company reported fourth-quarter adjusted earnings per share of $(1.25) loss, narrower than the street view of $(1.57).

Total consolidated revenue increased 9.3% to $366.1 million due to an 8.6% increase in total net sales and a 10.7% increase in finance charges and other revenues. Revenues missed the analyst consensus of $422.403 million.

Retail revenues rose 9.6% year over year to $296.9 million for the three months ended January 31, 2024. Credit revenues rose 10.4% to $70.8 million in the quarter under review. 

The Badcock transaction, which closed on December 18, 2023, contributed $68.4 million to total consolidated revenue.

On a non-GAAP basis, adjusted net loss for the fourth quarter of fiscal year 2024 was $(31.0) million.

The company opened one new Conn’s store during the fourth quarter of fiscal year 2024. 

In addition, the company added 376 stores through the Badcock transaction in December 2023, bringing the total store count to 553 (including 308 dealer stores) in 15 states. The company had $70.75 million of cash and equivalents.

“While we expect the macro-environment to remain challenging throughout our fiscal year 2025, I am confident that the Badcock transaction, combined with existing strategic initiatives underway, will position us to emerge stronger and more resilient than ever before,” said Norm Miller, President and Chief Executive Officer. 

“As a result, we expect to experience year-over-year improvements in both retail sales and profitability throughout fiscal year 2025,” Miller added.

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Price Action: CONN shares are trading lower by 5.64% to $3.01 on the last check Thursday.