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Conn's Tramples Estimates
Big things are in store this quarter for furniture retailer Conn's (NASDAQ:CONN), having reported second-quarter FY22 revenue growth of 14% year-on-year, to $418.38 million, beating the analyst consensus of $396.74 million.
Q2 same-store sales increased 16.4% versus last year and increased 3.2% on a two-year basis.
Total retail revenues rose 24.0% Y/Y to $347.0 million. Furniture and mattress sales rose 34.9% Y/Y, home appliance sales increased 25.8%, and consumer electronics gained 2.3%.
EPS of $1.22 beat the analyst consensus of $0.71, while operating expenses rose 12% Y/Y to $364 million.
The operating margin was 13%, and operating income for the quarter rose 30.8% to $54.2 million.
Conn's held $39.7 million in cash and equivalents as of July 31.
Total debt of Conn's declined 41% Y/Y to $439.6 million.
Net debt as a percentage of the portfolio balance decreased 13.9 percentage points Y/Y to 36.2%.
According to CEO Chandra Holt, "Strong second-quarter retail and credit results exceeded our expectations and demonstrate that our growth strategies are taking hold. Second quarter same store sales increased 16.4% and total retail sales are up 24.0% over the prior-year period.
"Strong retail performance combined with a second quarter credit spread of 1,200 basis points, contributed to record second quarter earnings per diluted share. In fact, earnings per diluted share of $2.74 for the first six months of the year are higher than any annual earnings in Conn's 131-year history."
CONN shares sprinted $1.58, or 6.4%, to stride into Wednesday's mid-morning session at $26.18.
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