Conn's raises forecast on higher selling prices
(Reuters) - Home appliances retailer Conn's Inc (CONN.O) posted better-than-expected quarterly results and raised its full-year profit forecast for the third time, as it gains from higher selling prices and strong demand for furniture and mattresses.
The company, which also sells lawn and garden products, raised its full-year 2013 profit forecast to between $1.40 per share and $1.50 per share, up from its previous outlook of $1.30 per share and $1.40 per share.
Conn's, known for offering flexible credit options to shoppers, posted a second-quarter profit of $11.6 million, or 35 cents per share, compared with a loss of $3.1 million, or 10 cents per share, a year earlier.
On an adjusted basis, the company earned 36 cents per share. Analysts on average expected a profit of 35 cents per share, according to Thomson Reuters I/B/E/S.
Conn's, which competes with Best Buy Co Inc (BBY.N) and Hhgregg (HGG.N), said revenue rose 11 percent to $207.4 million, beating average market estimate of $206.0 million.
Same-store sales increased 21.5 percent for the quarter, driven by a 57.5 percent rise in comparable sales of furniture and mattresses.
Shares of Beaumont, Texas-based Conn's closed at $23.95 on the Nasdaq on Tuesday.
(Reporting by Maria Ajit Thomas in Bangalore; Editing by Saumyadeb Chakrabarty)