Furniture & Mattress Sales At Conn's Inc. Increase By 7.6%

Furniture World News

Conn’s, Inc., a specialty retailer of home appliances, consumer electronics, computers, lawn and garden products, furniture and mattresses, today announced its net sales results for the quarter ended April 30, 2009. Net sales for the quarter ended April 30, 2009, of $200.1 million, increased $5.1 million, or 2.6%, as compared with the quarter ended April 30, 2008. Net sales represent total product sales, service maintenance agreement commissions and service revenues. Same store sales (sales recorded in stores operated for the entirety of both periods) decreased 4.6% for the quarter ended April 30, 2009. Though same store sales were impacted by Circuit City’s liquidation sale during the quarter, the Company believes it increased its consumer electronics and appliance market share. The expected market share gains are evidenced by the increase in total television unit sales of 34.5% and increase in total appliance sales, as compared to the same period in the prior year. Total revenues for the quarter, including revenues from finance charges and other, will be reported in the Company's earnings release and conference call scheduled for June 4, 2009. The following is a summary of the key items impacting net sales during the quarter: - The consumer electronics category showed continued growth driven by flat-panel televisions, led by LCD and plasma televisions, partially offset by declines in average selling prices and projection television unit sales. +6.4% - The home appliance category grew during the quarter, though the appliance market in general showed continued weakness, as the Company focused on improving its performance in this category and benefited in the markets directly impacted by Hurricane Ike. +3.5% - Track sales declines were largely due to lower computer, digital camera, camcorder and portable audio sales, partially offset by higher DVD player and accessory sales. -7.3% - The increase in furniture and mattresses sales were driven by expanded brand offerings and improved in-store displays,. +7.6% - The decrease in other product sales was due primarily to lower lawn and garden equipment sales. -14.1% - The service maintenance agreement commissions decrease was due in part to a reduced percentage of sales being financed on the Company’s in-house credit programs.+2.7% - Seven stores opened since February 1, 2008, contributed to the increase in Total net sales. The Company will host a conference call and audio webcast on Thursday, June 4, 2009, at 10:00AM, CDT, to fully discuss its earnings and operating performance for the quarter. The webcast will be available live at www.conns.com and will be archived for one year. Participants can join the call by dialing 877-440-5803 or 719-325-4891. About Conn’s, Inc.: The Company is a specialty retailer currently operating 75 retail locations in Texas, Louisiana and Oklahoma: 23 stores in the Houston area, 19 in the Dallas/Fort Worth Metroplex, nine in San Antonio, five in Austin, five in Southeast Texas, one in Corpus Christi, four in South Texas, six in Louisiana and three in Oklahoma. It sells home appliances, including refrigerators, freezers, washers, dryers, dishwashers and ranges, and a variety of consumer electronics, including LCD, plasma and DLP televisions, camcorders, digital cameras, computers and computer accessories, Blu-ray and DVD players, video game equipment, portable audio, MP3 players, GPS devices and home theater products. The Company also sells lawn and garden products, furniture and mattresses, and continues to introduce additional product categories for the home to help respond to its customers' product needs and to increase same store sales. Unlike many of its competitors, the Company provides flexible in-house credit options for its customers. In the last three years, the Company financed, on average, approximately 61% of its retail sales.