Home appliances and consumer electronics retailer Conn's, Inc. (CONN) reported Thursday a decrease in second-quarter profit, despite a slight increase in total revenues, hurt particularly by higher reserve for bad debts. The company also lowered its earnings guidance for the full year.
For the second quarter, net earnings dropped to $4.95 million or $0.22 per share from $10.21 million or $0.45 per share in the previous year.
The results of the latest quarter included increase in fair value of $91 thousand, compared to a decrease of $1.21 million last year. Excluding items, earnings dipped to $4.89 million or $0.22 a share.
On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share in the second quarter. Analysts' estimates typically exclude special items.
Total revenues for the period increased 0.8% to $220.21 million from $218.53 million last year. Three analysts were expecting revenue of $221.23 million in the second quarter. Total net sales came down 0.2% to $190.30 million from $190.64 million.
The company said revenue growth in furniture and mattresses and appliances was offset by declines in the consumer electronics and lawn and garden categories and service maintenance agreement commissions.
Same store sales declined 5.2%, reflecting lower average selling prices on flat-panel televisions amid weak economic conditions.
Finance charges and other revenues increased 2.5% to $29.82 million from $29.10 million in the comparable quarter last year.
Cost of goods sold, including warehousing and occupancy costs went up to $140.76 million from $136.78 million. Provision for bad debts surged year-over-year to $2.75 million from $333 thousand.
For the six-month period, net income dipped to $16.47 million or $0.73 per share from $20.81 million or $0.92 per share in fiscal 2009. Adjusted net income slid to $15.51 million or $0.68 a share from $23.58 million or $1.04 a share. Revenues rose to $451.54 million from $437.09 million in the same period last year.
Looking ahead, For fiscal 2010, the company lowered its earnings guidance to the range of $1.40 - $1.60 per share from $1.75 - $1.85 per share , excluding fair value adjustments. Analysts estimate earnings of $1.64 per share for the fiscal year.
CONN closed Wednesday's regular trading hours at $13.18 on the NASDAQ.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.