Conn's (CONN) Comps Fell 6.7% in May 2016

Conn's, Inc. (Nasdaq: CONN) reported $111.0 million in total retail net sales for the month ended May 31, 2016, a 0.8% increase compared to the same prior year period.

The following table presents the Company's percentage change in same store sales for the month ended May 31, 2016, compared to the same prior-year periods, and the 60-plus day delinquency rate as of May 31, 2016:

Norm Miller, Conn's Chairman, Chief Executive Officer and President, commented, "During May, same store sales declined by 6.7%, excluding the impact of our April 2015 decision to exit video game products, digital cameras, and certain tablets. Sales compared to the prior year were driven by two factors. First, underwriting refinements implemented during the fourth quarter of fiscal 2016 and in the first quarter of fiscal 2017 reduced sales by approximately 650 to 700 basis points, consistent with our expectations. These changes are expected to reduce credit risk and improve future portfolio performance. Second, Memorial Day fell five days later this year. As a result, more of the sales written over the holiday weekend will not be delivered and booked until June than in the prior year. This affected same store sales by an estimated 290 basis points.

"Furniture sales continued to trend better than the Company average on increased advertising exposure. Excluding sales of exited products, same store sales of consumer electronics were down 13.3% on softer vendor promotions on televisions compared to the prior year, with some recovery late in the month on aggressive Memorial Day promotions by the manufacturers. Home office sales were down 1.6%, excluding sales of exited products.

"Greater than 60-day delinquency was 8.9% as of May 31, 2016, a sequential increase from 8.6% as of April 30, 2016, and compared to 8.5% as of May 31, 2015. Continued reductions in the pace of portfolio growth are negatively impacting the year-over-year delinquency rate comparison."

All of the above May 31, 2016 amounts are preliminary estimates and are subject to change upon completion of the Company's financial statement closing process. The Company has provided monthly same store sales, portfolio balance 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.

Future Monthly Reporting Release Plans

Beginning with the recently reported first quarter of fiscal 2017 earnings results, Conn's began providing expanded quarterly guidance in an effort to assist analysts and investors with modeling expected earnings for the business. Additional guidance metrics provided in the June 2, 2016, earnings release included: SG&A rate as a percent of total revenues, provision for bad debt as a percent of the average portfolio balance, and total interest expense. Given the enhanced guidance, Conn's will discontinue monthly reporting of same store sales and greater than 60-day delinquency performance after this release.

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