HomeMarket NewsMicro Cap StocksConn's Adjusts Store Expansion Plans for FY24 Following Q2 Performance

Conn’s Adjusts Store Expansion Plans for FY24 Following Q2 Performance

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Specialty home goods retailer Conn’s, IncΒ CONN experienced an 11.5% decline in revenue for the second quarter of FY24 compared to the previous year, reporting $306.9 million in revenue, slightly below the consensus estimate of $308.2 million.Β 

However, the company exceeded expectations with an adjusted earnings per share loss of $(1.39) compared to the consensus loss of $(1.53).

On a positive note, same-store sales showed improvement with a 15.4% decrease, a significant improvement from the same quarter last year. Additionally, eCommerce sales increased by 41.5%.

Retail revenues saw a decline of 12% year-over-year, primarily due to lower same-store sales. Meanwhile, credit segment revenues decreased by 5.5% due to a decrease in the average balance of customer accounts receivable.

In the second quarter, Conn’s opened four new standalone stores. However, the company has adjusted its plans for FY24 and now intends to open ten standalone locations, one less than the previously announced forecast.

As of the end of the quarter, Conn’s had $37.6 million in cash and equivalents. Unfortunately, the stock has performed poorly, with a year-to-date loss of over 51% and a decline of over 29% in the last month.

Price Action:Β In premarket trading, CONN shares are currently up 9.80% to $3.81.

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