- Conn's Inc (NASDAQ:CONN) reported a first-quarter FY23 sales decline of 6.6% to $339.81 million, missing the consensus of $360.78 million.
- Same-store sales decreased 9.5% versus last year and increased 9.9% on a two-year basis.
- EPS of $0.25 beat the consensus of $0.17.
- eCommerce sales jumped 71.7% Y/Y to $18.3 million. Retail segment revenues decreased 6.5%, and credit segment revenues declined 6.8%.
- The costs and expenses for the quarter climbed 10.9% Y/Y to $325.8 million.
- The operating margin was 4.1%, and operating income for the quarter fell 80% to $13.9 million.
- The company held $43.4 million in cash and equivalents as of April 30, 2022. Net debt totaled $529.8 million.
- "As expected, our first quarter retail performance was impacted by lapping government stimulus, continued third-party lease-to-own tightening, and a challenging macro environment," said CEO Chandra Holt.
- "Going forward, our outlook for the remainder of the year has become more cautious as a result of worsening economic conditions," Holt added.
- Price Action: CONN shares traded higher by 2.27% at $13.50 in premarket on the last check Wednesday.
