Conn's 1st-quarter profit beats market expectations
(Reuters) - Conn's Inc (CONN.O) reported a better-than-expected quarterly profit and raised its full-year earnings outlook for the second time, as the retailer benefited from higher selling prices and stronger sales in the higher-margin furniture and mattress category.
The electronics and home appliances retailer, which provides shoppers flexible credit options to buy its products, now expects full-year earnings of $1.30 to $1.40 per share, up from its previous outlook of $1.20 to $1.30 per share.
Beaumont, Texas-based Conn's, which also sells lawn and garden products, said first-quarter earnings rose to $11.5 million, 35 cents per share, from $4.4 million, or 14 cents per share in the previous year.
Analysts, on average, expected a profit of 33 cents a share, according to Thomson Reuters I/B/E/S.
Revenue rose 5 percent to $200.9 million. Same-store sales rose 17.8 percent from last year.
Gross margins in the company's retail segment increased to 33.7 percent, from 30.5 percent a year earlier.
Conn's shares closed at $17.71 on Friday on the Nasdaq.
(Reporting by Juhi Arora in Bangalore; Editing by Viraj Nair)