Conn's Enjoys Quarterly Sales IncreaseAugust 8, 2012
Furniture, appliance and electronics retailer Conn's Inc. announced sales of $171.1 million for the quarter ended July 31, a 12.9 percent increase from the same period last year.
Beaumont, Texas-based Conn's same store sales for the quarter rose 21.5 percent over the comparable prior-year period.
Chairman and CEO Theodore M. Wright said, "We opened our new store in Waco, Texas in mid-June. The new Conn's Home Plus store delivered solid revenues in July--positioning it within the top 10 percent of our 65 stores ranked on sales."
The following provides a summary of items influencing the company's major product categories during the quarter, compared with the same quarter in the prior fiscal year:
* The continued growth in furniture and mattress sales was driven by enhanced presentation, product selection and increased promotional activity. The reported increase was tempered by the impact of previous store closures. Furniture same store sales growth was driven by a 36.5 percent increase in unit sales together with a 19.3 percent increase in the average sales price.
* Mattress same-store sales also increased reflecting a favorable shift in product mix from the Company's decision to discontinue offering low price-point products. As a result, on a same-store basis, the average mattress selling price rose 78.5 percent and was partially offset by an 18.8 percent decline in unit volume
* Home appliance sales increased during the quarter reflecting a 25 percent increase in the average selling price, partially offset by a 19.1 percent decrease in unit volume. Approximately one-third of the unit sales decline was attributable to the previous store closures. On a same-store basis, laundry sales increased 15.4 percent, refrigeration sales increased 7.5 percent and cooking sales increased 17.4 percent. Milder temperatures drove a 18.9 percent decrease in room air conditioner sales.
* Consumer electronic sales decreased modestly due to the previous store closures. On a same store basis, sales rose 4.6 percent with growth in televisions, home theater and audio sales partially offset by a reduction in gaming hardware and accessory item sales. With the company's decision beginning late last year not to compete for low-priced, low-margin television sales, the same store average selling price for televisions increased 32.1 percent, while unit sales declined 20.5 percent.
* Home office sales growth was driven by the expansion of tablet sales, as well as a 26.8 percent increase in the average selling price of computers. The reported increase was partially offset by the impact of store closures, a reduction in computer unit volume and lower sales of accessory items.