Conn's Shares Plunge 30% After Mixed Q3 Results
Shares of Conn's (NASDAQ: CONN), a specialty retailer of furniture, related accessories, and home appliances, among other products, declined just over 30% during early Tuesday trading after the company released mixed third-quarter fiscal 2020 results.
Conn's third-quarter revenue checked in at $377.71 million, a 1% increase compared to the prior year but well short of analysts' estimates of $394.29 million. The disappointing top line didn't ruin bottom-line results, however, with third-quarter adjusted earnings per share of $0.61, compared to analysts' estimates of $0.54 per share. Digging beyond the top- and bottom-line figures, there were additional takeaways including the company's impressive credit spread. Norm Miller, Conn's chairman and CEO, had this to say a press release:
For the first time in five and a half years, Conn's produced positive credit segment income before taxes, primarily as a result of a third quarter credit spread of 1,070 basis points. This is a significant milestone for the company and validates our 1,000-basis point credit spread operating strategy. Our credit model is the foundation of our overall business and enables our unmatched value proposition for our core customer, while providing us the flexibility to support our retail growth strategy.
Source Fool.com
