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Conn’s IncCONN reported a fourth-quarter FY23 sales decline of 16.8% year-over-year to $334.88 million, beating the consensus of $331.55 million.
Same-store sales decreased by 21.8% versus last year, and eCommerce sales increased to $24.2 million.
Adjusted EPS loss of $(1.53) missed the consensus of $(0.87).
Retail revenues decreased by 18.7% Y/Y, primarily driven by a decrease in same-store sales.
Credit segment revenues declined 7.8% Y/Y to $64.1 million, primarily due to a decrease of 8.9% in the average balance of the customer receivable portfolio and a decrease in insurance commissions.
The company opened four new standalone stores and closed one standalone store during the quarter.
As of January 31, 2023, Conn’s held $143.8 million of immediately available borrowing capacity under its $650.0 million revolving credit facility and $19.5 million unrestricted cash.
Operating loss for the quarter was $(33.43) million against income of $15.03 million last year.
The company plans to open a total of 11 standalone locations in FY24.
“While we believe the economic landscape will remain challenging throughout the coming fiscal year, we are confident that the strategies we are pursuing will enable us to emerge from this period stronger, more focused and better positioned to create lasting value for our customers, employees, and shareholders,” stated Norm Miller, Interim President, and CEO.
Price Action: CONN shares closed lower by 6.08% at $5.41 on Tuesday.
