Retail
What to Expect When Conn's Reports Before Tuesday's Opening Bell
Published:
Last Updated:
Conn’s Inc. (NASDAQ: CONN) is scheduled to release its fiscal third-quarter results before the opening bell on Tuesday. The consensus estimates are calling for $0.54 in earnings per share (EPS) and $394.29 million in revenue. The same period of last year reportedly had $0.59 in EPS and $373.8 million in revenue.
In the fiscal second quarter, the company reported that total net sales increased 3.3% year over year to $306.06 million, while finance charges and other revenues increased 7.6% to $95.0 million.
Also at that time, Conn’s issued guidance for the fiscal third quarter saying that it expects to see total retail sales growth in the range of 4% to 8% with a retail gross margin between 40.0% and 40.5%.
The increase in retail revenue was primarily driven by new store growth, partially offset by a decrease in same-store sales of 2.3%. The decrease in same-store sales was driven by a decrease of 9.3% in markets affected by Hurricane Harvey, partially offset by an increase of 0.4% in markets not affected by the hurricane. Note that same-store sales include e-commerce sales.
During the second half of this fiscal year, management expects to lap the benefits Hurricane Harvey rebuilding efforts had on same-store sales, which has affected the year-over-year sales comparison over the past four quarters.
Management also said that e-commerce sales are quickly ramping and the retailer is well-positioned to serve customers online.
Excluding Monday’s move, Conn’s had underperformed the broad markets, with its stock up about 3% year to date. In the past 52 weeks, the stock was down closer to 22%.
Shares of Conn’s were last seen up about 3% at $20.03, in a 52-week range of $15.40 to $27.57. The consensus price target is $33.83.
Credit card companies are handing out rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.