Beaten Down Specialty Home Goods Retailer Conn's Modifies Store Expansion Plans for FY24 After Mixed Q2 Performance

Conn's, Inc CONN reported a second-quarter FY24 revenue decline of 11.5% year-over-year to $306.9 million, missing the consensus of $308.2 million. 

Adjusted EPS loss of $(1.39) beat the consensus loss of $(1.53).

Same-store sales decreased 15.4%, marking the third quarter of sequential improvement and an over 1,000 bps improvement from last year's third quarter, and eCommerce sales increased 41.5%.

Retail revenues decreased by 12% Y/Y, primarily driven by a decrease in same-store sales.

Credit segment revenues declined 5.5% Y/Y, primarily due to a decrease in the average outstanding balance of the customer accounts receivable portfolio.

The specialty home goods retailer opened four new standalone stores in the quarter. During FY24, the company plans to open ten standalone locations, down from the prior forecast of 11.

Conn's exited the quarter with cash and equivalents worth $37.6 million.

The stock lost over 51% YTD and over 29% last month.

Price Action: CONN shares are trading higher by 9.80% to $3.81 in the premarket session on the last check Wednesday.