THE WOODLANDS, Texas —Conn’s Inc., the home furnishings retailer and credit provider saw its net income for the third quarter of fiscal year 2021 ended Oct. 31 drop 35.3% year over year, from $11.5 million in the 2019 quarter to $7.4 million this year.
Earnings per diluted share dropped to 25 cents per share, compared with 39 cents per share in the quarter last year.
Retail revenues were $259.9 million for the three month period, compared with $280.3 million last year, a drop of 7.3%. The decrease in revenue was primarily driven by a decrease in same store sales of 10.9% and a decrease in repair serve agreement commission, partially offset by new store growth.
In Conn’s credit segment, revenues were $74.2 million for the period, compared with $95.8 million for the 2019 third quarter, a decrease of 22.5%. The decrease was primarily attributed to a decrease in the average balance of the customer receivable portfolio, a decrease in insurance commission and a decrease in insurance retrospective income.
Norm Miller, Conn’s chairman and CEO, noted that the company is seeing a strong demand for home-related products and that it is “quickly expanding our digital and omnichannel capabilities to meet surging online trends.”
The company opened two new Conn’s HomePlus showrooms during the third quarter of fiscal year 2021 and has opened one new Conn’s HomePlus showroom, its first in Florida, during the fourth quarter of fiscal year 2021. The retailer now has 144 showrooms in 15 states. It has plans to open two more showrooms before the end of fiscal 2021.
|Earnings per share are fully diluted, and all figures in parentheses are losses or declines.|
|Quarter ended 10/31||2020||2019||% change|
|Earnings per share||$0.25||$0.39||(35.9%)|