Friday, March 26, 2010

Conn’s, Inc. (CONN) Reports Year Over Year Decline in Fourth Quarter

Conn’s, Inc. (CONN) reported net income of $6.5 million, or $0.29 per share, for the fourth quarter of fiscal 2010 ending January 31, 2010. In the same quarter last year, Conn’s, Inc. earned $12.6 million, or $0.56 per share.

The company said that the quarter contained a non-cash gain of $4.9 million, or $0.21 per share, due to an increase in the value of the company’s securitized pool of assets and a tax benefit due to a litigation settlement.

Revenues also experienced a sharp decline in the quarter on a year over year basis. Conn’s, Inc. reported revenues of $202.03 million in the first quarter of fiscal 2010, compared to $269.9 million in the same quarter last year.

Conn’s Inc. reported a same store sales drop of 31.7% on a year over year basis. The company said that the sharp decline in sales was due to a challenging environment in the economy, which made consumers less likely to spend money, and tightened lending standards that the company imposed over the past 12 months.

The company also blamed a decline in sales and average selling prices of flat panel TV’s and a surge in sales in the first fiscal quarter of last year, which occurred right after a major hurricane.

Conn’s Inc. is a specialty retailer with more than 70 locations in Louisiana, Texas, and Oklahoma. The company sells home appliances, electronics and other home products.

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