Why Conn's (CONN) Shares Are Sliding Today

Conn's, Inc. CONN reported a first-quarter FY24 sales decline of 16.3% year-over-year to $284.57 million, missing the consensus of $306.06 million.
Same-store sales decreased by 20.1% versus last year, and eCommerce sales increased 24.6%.
Adjusted EPS loss of $(1.52) missed the consensus of $(1.33).
Retail revenues decreased by 17.8% Y/Y, primarily driven by a decrease in same-store sales.
Credit segment revenues declined 8.2% Y/Y, primarily due to a decrease in the average outstanding balance of the customer accounts receivable portfolio and a decline in insurance commissions.
The company opened three new standalone stores in the quarter. During fiscal year 2024, the company plans to open 11 standalone locations.
Conn's exited the quarter with cash and equivalents worth $46.1 million.
"Despite a difficult backdrop, we continue to refocus our efforts to better serve our core credit-constrained consumers, grow our eCommerce business and launch our in-house lease-to-own offering," stated Norm Miller, Interim President and Chief Executive Officer.
"While we expect a challenging economic landscape to continue throughout the year, we believe we are on the right track to emerge from this period as a stronger, profitable company that is well positioned to serve the growing needs of our core credit-constrained customers," he added.
Price Action: CONN shares are trading lower by 16.25% to $3.40 in the premarket session on the last check Thursday.
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Why Conn's Shares Are Sliding Today