Conn's Stock Gains As Q2 Earnings Smashes Estimates

Benzinga2021-09-01
  • Conn's Inc (NASDAQ:CONN) reported second-quarter FY22 revenue growth of 14% year-on-year, to $418.38 million, beating the analyst consensus of $396.74 million.
  • Q2 same-store sales increased 16.4% versus last year and increased 3.2% on a two-year basis.
  • Total retail revenues rose 24.0% Y/Y to $347.0 million.
  • Furniture and mattress sales rose 34.9% Y/Y, home appliance sales increased 25.8%, and consumer electronics gained 2.3%.
  • E-commerce sales increased 210.9% Y/Y to $17.3 million, and Lease-to-own sales climbed 70.3% to $41.6 million.
  • EPS of $1.22 beat the analyst consensus of $0.71.
  • Operating expenses rose 12% Y/Y to $364 million.
  • The operating margin was 13%, and operating income for the quarter rose 30.8% to $54.2 million.
  • Conn's held $39.7 million in cash and equivalents as of July 31, 2021.
  • Total debt of Conn's declined 41% Y/Y to $439.6 million.
  • Net debt as a percentage of the portfolio balance decreased 13.9 percentage points Y/Y to 36.2%.
  • Price Action: CONN shares are trading higher by 10.12% at $27.09 in premarket on the last check Wednesday.
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