Shares of the Texas-based home-furnishings and consumer electronics retail store Conn’s (Nasdaq:CONN) have gone tumbling down today after releasing their fourth quarter financial results.
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The results showed that the company’s retail revenue had gone down to $334.5 million USD, compared to the $356.2 million from the previous year.
The company believes that the drop in $21.7 million has to do with the decrease in same-store sales, which also dropped by eight per cent.
They also attributed the drop in sales to a negative impact caused by “the transition of [their] lease-to-own partner and general consumer softness along the Mexico border.”
The company is being hopeful, although it looks like the market does not seem to agree.
Conn’s CEO and chairman, Norm Miller, said that the financial results “demonstrate the successful execution of the Company’s turnaround strategies and…[the] credit segment performance improved throughout the fiscal year as a result of higher finance charges, stronger portfolio fundamentals, controlled expenses, and lower borrowing costs.”
Miller is “encouraged by the platform [they] have created and the positive momentum underway at Conn’s” and that the company will continue to improve their credit spread, “while dedicating more of [their] focus to driving retail growth.”
The company predicts that same store sales will also drop three to five per cent in the next quarter.
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Furniture, mattress, home appliances, consumer electronics, and home office units all decreased by an average of 11%, which were offset by an average increase of 4.7% in total average selling price.
Currently, shares have decreased by nearly 15%, sitting at $30.48.
Conn’s has reached a low of $29.98, which is a significant drop compared to yesterday’s high of $36.25 and low of $32.71.
Featured Image: twitter
