(MENAFN- Baystreet.ca) Conn's (NASDAQ:CONN) stock has been rising Wednesday, on fourth-quarter numbers.
Earnings for the fourth quarter increased approximately 400% to $0.85 per diluted share, compared to $0.17 per diluted share for the same period last fiscal year.
Increased fourth-quarter cash and third-party credit sales nearly 35% compared to the prior fiscal year period reflecting strong demand for home-related products.
Same-store sales declined 10.1% for the fourth quarter, primarily due to a nearly 29% decline in sales financed by Conn's in-house credit because of tighter underwriting associated with the COVID-19 crisis.
Said CEO Norm Miller, "Throughout fiscal year 2021, we took decisive actions focused on supporting our employees, customers, and communities, while de-risking our business, enhancing our balance sheet, and investing in digital and e-commerce. These actions combined with the dedication of our associates directly contributed to our ability to successfully navigate the COVID-19 pandemic.
"Quarterly same store sales improved sequentially throughout fiscal year 2021, despite continued conservative underwriting strategies, which we believe demonstrates strong underlying demand for our products, and we anticipate positive same store sales momentum will continue into fiscal year 2022."
Net income for the fourth quarter of fiscal year 2021 was $25.1 million, or $0.85 per diluted share, compared to net income for the fourth quarter of fiscal year 2020 of $5.1 million, or $0.17 per diluted share. The increase in net income was primarily due to a decrease in provision for bad debts and tax benefit related to the CARES ACT, partially offset by a decline in revenue.
CONN's shares popped $3.05, or 19.5%, to $18.70.
MENAFN31032021000212011056ID1101841572
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.