Conn's (CONN) Tops Q3 EPS by 1c, Revenues Miss

December 8, 2020 6:02 AM EST
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Price: $20.89 +6.42%

Financial Fact:
Net income (loss): -3.82M

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Conn's (NASDAQ: CONN) reported Q3 EPS of $0.25, $0.01 better than the analyst estimate of $0.24. Revenue for the quarter came in at $334.16 million versus the consensus estimate of $345.19 million.

“Our third quarter results highlight the resilience of our unique hybrid retail and credit business model and the ability to de-risk our credit business while still supporting retail demand through our diverse credit offerings. As a result, we experienced another quarter of robust year-over-year growth of cash and third-party retail sales, which increased 32.7% over the prior fiscal year period and reflect strong demand for home-related products. We are also quickly expanding our digital and omnichannel capabilities to meet surging online trends and e-commerce sales increased nearly 61% during the quarter,” stated Norm Miller, Conn’s Chairman and Chief Executive Officer.

“The performance of our credit segment throughout the COVID-19 crisis demonstrates the success of the adjustments we made earlier this year to mitigate the potential impacts on our business of high unemployment and economic uncertainty. While retail sales financed by our in-house credit offering declined 27.9% from the prior fiscal year, our credit segment is benefitting from newer, higher quality originations and the highest rate of cash collections in over ten fiscal years. In addition, the reduction in the portfolio balance, driven by strong cash collections and higher cash and third-party sales, has contributed to significant year-to-date and third quarter operating cash flow and strengthened our balance sheet.”

“Same store sales improved sequentially reflecting the progress we are making to capture retail sales opportunities while prudently managing credit risk. I am proud of our response to the unprecedented challenges we have faced throughout the COVID-19 pandemic and our continued commitment to protect the health and safety of our employees, customers, and communities. This is a testament to the experience of our senior leadership team, the dedication of our employees and the value our credit and retail products provide our communities. As we successfully navigate this difficult period, I remain confident in the direction we are headed,” concluded Mr. Miller.

For earnings history and earnings-related data on Conn's (CONN) click here.



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