Conn's (CONN) Comps Fell 0.5% in Dec.; Updates on Delinquency Rate

Conn's (NASDAQ: CONN) reported an 11.5% increase in total retail net sales, to $132.4 million, for the month ended December 31, 2014, compared to the same prior year period.

The following tables present the Company's percentage change in same store sales for the month ended December 31, 2014 as compared to the same prior year period and 60-plus day delinquency rate as of December 31, 2014:

Theodore M. Wright, Conn’s chairman and chief executive officer, commented, “Greater than 60 day delinquency improved by 30 basis points in December compared to November. Less than 60 day delinquency at December 31, 2014 was well below a year ago.”

“Total retail net sales were $122.7 million for the month ended November 30, 2014, a 19.4% increase compared to the same prior year period, followed by total retail net sales of $132.4 million for the month ended December 31, 2014. Same store sales declined less than 1% against an increase of 38.5% in the prior year December. We estimate a 5-7% headwind due to tighter underwriting compared to a year ago. Tighter underwriting, along with additional store openings, mostly impacted Arizona and New Mexico stores. Excluding Arizona and New Mexico store locations, same store sales increased 1.4%.”

“We experienced same store unit sales increases in the furniture and mattress and home appliance categories, while average selling price increases more than offset unit declines in consumer electronics and partially offset unit declines in home office. Same store sales increased 5.2%, excluding home office. Tablet same store sales declined 58.7%. Television same store sales were up slightly, and sales of Ultra HD televisions were 3.2% of December 2013 television sales and 51.1% of December 2014 television sales. Gaming sales increased sharply compared to a year ago as availability met consumer demand this year. Same store repair service agreement commissions declined due to changing product sales mix, as repair service agreement attachment rates are highest on home office products.”

“Supply chain issues caused by port labor disruption were mitigated by planned higher inventory, although we had isolated product shortages. Overall, the impact of the port situation was limited and a greater impact on January sales is not expected unless product flow deteriorates further.”

All of the above amounts are preliminary estimates and are subject to change upon completion of the Company's monthly and quarterly financial statement closing process. The Company has provided monthly same store sales and 60-plus day delinquency rate data for all monthly periods since and including February 2012 on its investor relations website, at ir.Conns.com.

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