Conn's Inc. Reports Strong Net Sales For 4th Quarter

Furniture World Magazine

Conn’s, Inc., a specialty retailer of home appliances, consumer electronics, computers, lawn and garden products, furniture and mattresses, today announced its net sales results for the quarter ended January 31, 2009. Net sales for the quarter ended January 31, 2009, of $245.4 million, increased $44.8 million, or 22.3%, as compared with the quarter ended January 31, 2008. Net sales represent total product sales, service maintenance agreement commissions and service revenues. Same store sales (sales recorded in stores operated for the entirety of both periods) increased 21.7% for the month of January 2009, resulting in a 12.5% increase for the quarter ended January 31, 2009. Same store sales were strong during every month of the quarter, driven by the Company’s focus on increasing its market share. Additionally, the Company noted that it was able to obtain these market share increases while achieving product gross margins consistent with its experience during the prior quarters of the current fiscal year. Total revenues for the quarter, including revenues from finance charges and other, will be reported in the Company's earnings release and conference call scheduled for March 26, 2009. The following is a summary of the key items impacting net sales during the quarter: The consumer electronics category showed solid growth as continued consumer interest in flat-panel televisions, led by LCD televisions, and higher home theater sales drove this category, The home appliance category grew during the quarter, though the appliance market in general showed continued weakness, as the Company focused on improving its performance in this category and benefited in the markets directly impacted by Hurricane Ike, Track sales increases were largely due to higher laptop computer, DVD player, video game equipment and accessory sales, partially offset by lower MP3 player sales, The increase in furniture and mattresses sales were driven by expanded brand offerings and improved in-store displays, The service maintenance agreement commissions increase was consistent with the overall increase in product sales, and 12 stores opened since November 1, 2007, including two stores opened during the quarter ended January 31, 2009. Net sales for the year ended January 31, 2009, of $805.0 million, increased $74.0 million, or 10.1%, as compared with the year ended January 31, 2008. Net sales represent total product sales, service maintenance agreement commissions and service revenues. Same store sales (sales recorded in stores operated for the entirety of both periods) increased 2.0% for the year ended January 31, 2009. Total revenues for the year, including revenues from finance charges and other, will be reported in the Company's earnings release and conference call scheduled for March 26, 2009. About Conn’s, Inc. The Company is a specialty retailer currently operating 76 retail locations in Texas, Louisiana and Oklahoma: 23 stores in the Houston area, 19 in the Dallas/Fort Worth Metroplex, 10 in San Antonio, five in Austin, five in Southeast Texas, one in Corpus Christi, four in South Texas, six in Louisiana and three in Oklahoma. It sells home appliances, including refrigerators, freezers, washers, dryers, dishwashers and ranges, and a variety of consumer electronics, including LCD, plasma and DLP televisions, camcorders, digital cameras, computers and computer accessories, Blu-ray and DVD players, video game equipment, portable audio, MP3 players, GPS devices and home theater products. The Company also sells lawn and garden products, furniture and mattresses, and continues to introduce additional product categories for the home to help respond to its customers' product needs and to increase same store sales. Unlike many of its competitors, the Company provides flexible in-house credit options for its customers. In the last three years, the Company has financed, on average, approximately 59% of its retail sales.