* Second-quarter adj EPS at $0.36 vs est $0.35
* Second-quarter rev at $207.4 mln vs est $206.0 mln
* Raises FY13 EPS view to $1.40-$1.50
* Shares up as much as 13 percent
Sept 5 Home appliances and electronics retailer
Conn's Inc raised its full-year profit forecast for the
third time this year and said it expects furniture and mattress
sales to contribute more to its revenue going ahead.
Shares of the company, known for offering flexible credit
options to its customers, rose as much as 13 percent to a
five-year high on Wednesday.
The company, which also sells lawn and garden products,
raised its profit forecast for fiscal 2013 by 10 cents to
between $1.40 per share and $1.50 per share.
Conn's has been altering its sales mix to feature
high-priced products, especially furniture and mattresses, to
In the second quarter, the company's overall same-store
sales increased 21.5 percent, driven by a 57.5 percent rise in
comparable sales of furniture and mattresses, it said on
The company plans to increase the share of furniture and
mattresses to 30 percent of its total sales, up from 21 percent
at present, Chief Executive Theodore Wright said on a
The Beaumont, Texas-based company said it saw growth in all
its retail segments, including consumer electronics which posted
a 4.6 percent rise in comparable store sales.
However, Conn's said it would be cautious about electronics
and television sales in the second half of fiscal 2013.
In August, U.S. consumer electronics retailer Best Buy Co
Inc reported a drop in quarterly sales, hurt by cooling
demand in key markets such as China.
The company, which was founded in 1890 as a plumbing and
heating business, 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.
During the quarter, retail gross margins expanded to 34.1
Conn's, which also competes with Hhgregg and Home
Depot Inc, said it expects to open four new stores this
year, and 10 to 12 stores in fiscal 2014.
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 said revenue rose 11 percent to $207.4 million,
beating the average market estimate of $206.0 million.
The company's shares, among the top percentage gainers on
the Nasdaq on Wednesday, were up 7 percent at $25.68.