Conn’s, Inc., a specialty retailer of home appliances, consumer electronics, computers, lawn and garden products, furniture and mattresses, announced its net sales results for the quarter ended April 30, 2007.
Net sales for the quarter ended April 30, 2007 of $181.4 million increased $9.7 million, or 5.6%, as compared with the quarter ended April 30, 2006, which, as previously disclosed, was positively impacted by hurricanes Katrina and Rita. Net sales represent net product sales (see table below), service revenues and commissions from service maintenance agreement sales. Revenues from finance charges and other for the quarter will be reported in the Company's earnings release and conference call scheduled for May 31, 2007.
Same store sales (sales recorded in stores operated for the entirety of both periods) decreased 0.3% for the quarter ended April 30, 2007. As previously disclosed, same store sales for the quarter ended April 30, 2006 of 16.1% were positively impacted by hurricanes Katrina and Rita.
“Our same store sales are flat, as expected, compared to an unusually strong quarter last year,” said the Company’s Chairman and CEO, Thomas J. Frank, Sr. “We are on track and look forward to increased sales growth for the remainder of the year.”
The electronics category showed strong growth benefiting from the continued consumer interest in flat panel televisions. The appliance category decreased as compared to the storm assisted first quarter of last year, which produced an abnormally high incidence of refrigeration replacement sales. Track sales (portable electronics, computers, computer peripherals, and small appliances) decreased as the Company modifies its merchandising strategies. Furniture continued its phenomenal growth and Lawn and garden is showing early strength this year.
Company’s total net sales for the quarter benefited from the six stores added since the first quarter of last year. The Company has several stores under development and plans to open six to eight new stores during the fiscal year ending January 31, 2008.
The Company will host a conference call and audio webcast on Thursday, May 31, 2007 at 10:00AM, CDT, to fully discuss earnings and performance for the quarter. The webcast will be available live at www.conns.com and will be archived for one year. Participants can join the call by dialing 800-811-8824 or 913-981-4903.
About Conn’s, Inc.
The Company is a specialty retailer currently operating 62 retail locations in Texas and Louisiana. It sells major home appliances, including refrigerators, freezers, washers, dryers and ranges, and a variety of consumer electronics, including projection, plasma, LCD and DLP televisions, camcorders, DVD players and home theater products. The Company also sells computers, lawn and garden products, mattresses and furniture, and continues to introduce additional product categories for the home to help increase same store sales and to respond to our customers' product needs.
Unlike many of its competitors, the Company provides in-house credit options for its customers. Historically, it has financed over 58% of retail sales. Customer receivables are financed substantially through an asset-backed securitization facility, from which the Company derives servicing fee income and interest income from these assets. The Company transfers receivables, consisting of retail installment contracts and revolving accounts extended to its customers, to a qualifying special purpose entity in exchange for cash and subordinated securities represented by asset-backed and variable funding notes issued to third parties.
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