Conn’s, Inc. reported net income of $5.5 million, or $0.25 per diluted share, in the first quarter of fiscal 2011, which ended 4/30/2010. The company reported net income of $11.4 million, or $0.50 per diluted share, in the same quarter in fiscal 2010.
Conn’s, Inc. said that sales in the first quarter of fiscal 2011 were $197.5 million, down from $239.9 million in the corresponding quarter in fiscal 2010.
Despite the drop in revenue, Conn’s, Inc. reported a year over year increase in gross margin, which came in at 27.9% for the first quarter of fiscal 2011. Gross margin was 25% in the same quarter in fiscal 2010.
Conn’s, Inc. blamed the fall in sales on the general economic environment, and the emphasis by management on maintaining prices rather than sacrifice margins at the company’s retail store base.
Tim Frank, the CEO of Conn’s Inc., said, “I am encouraged by the positive trends we saw across our retail and credit operations this quarter, driven by improved execution by our team. I believe we can continue to deliver improved performance, especially in the third and fourth quarters, given our higher level of execution and the recent stabilization of the economic conditions in our markets.”
Conn’s Inc. is a specialty retailer with a base of operations in the southern United States. The company offers home appliances, electronics and other home products at 76 retail locations in Oklahoma, Louisiana and Texas.
For more information on the company, go to www.conns.com