THE WOODLANDS, Texas (AP) — Conn’s fiscal fourth-quarter net income more than doubled, buoyed by strong sales of mattresses and furniture and increased revenue in the credit division.
The retailer, which also sells consumer electronics and other items, raised its fiscal 2014 earnings forecast on Wednesday.
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Its shares rose more than 7 percent in morning trading Wednesday after briefly touching a seven-year high.
Conn’s earned $17.7 million, or 50 cents per share, for the three months ended Jan. 31, up from $7.7 million, or 24 cents per share, a year ago.
The current quarter included $1.9 million in charges related to store closings, lease terminations, employee severance and the relocation of the company’s corporate office to The Woodlands, Texas. But that was less than a year ago when it absorbed $5.1 million in costs and impairment charges related to store closings.
Analysts surveyed by FactSet expected earnings of 55 cents per share.
Revenue increased 10 percent to $250.3 million from $226.7 million. Wall Street predicted $244.8 million in revenue.
Revenue at stores open at least a year climbed 7 percent. This figure is a key indicator of a retailer’s health because it excludes results from stores recently opened or closed.
In the retail division, revenue rose 9.7 percent to $208.7 million as furniture and mattress sales surged 54.2 percent. Sales of appliances and home office equipment also improved.
The credit segment’s revenue increased 14.5 percent to $41.6 million
For the year, Conn’s Inc. earned $52.6 million, or $1.56 per share. The company lost $3.7 million, or 12 cents per share, in the prior year. Annual revenue rose 9 percent to $865 million from $792.3 million.
Conn’s now anticipates fiscal 2014 adjusted earnings between $2.40 and $2.50 per share. Its previous outlook was for $2.05 to $2.15 per share. Its expectations for revenue at stores open at least a year was also lifted, with the retailer now expecting the figure to rise 3 percent to 8 percent. Conn’s previously predicted the metric would be flat to up 5 percent.
Analysts expect earnings of $2.09 per share for the year.
Conn’s currently has 68 retail stores in Texas, Louisiana, Oklahoma, New Mexico and Arizona.
Its stock rose $2.75, or 7.6 percent, to $38.83 in morning trading after rising as high as $41.36. That was its highest level since January 2006, according to FactSet.
