Conn’s (CONN) Q2 FY2015 Earnings Results and Excerpts
- Revenue $353M vs. $353.7M est. Adjusted EPS 50c vs. 75c est.
- Guides FY2015 same-store +5 to 10% and EPS to $2.80 to $3.00 vs. $3.54 est.
- Same-store sales +11.7%
- ”Credit segment provision for bad debts on an annualized basis was 13.9% of the average outstanding portfolio balance in the current quarter and 11.1% on an annualized basis for the first six months of fiscal 2015”
”..delinquency unexpectedly deteriorated across all credit quality levels, customer groups, product categories, geographic regions and years of origination”
”sixty-day delinquency rates unexpectedly deteriorated a combined 90 basis points in July and August. We now expect future 60-plus day delinquency to increase to levels above our historical highs in the third and fourth quarter of fiscal 2015”
”In response to higher delinquency, we are reducing the level of no-interest programs and raising the interest rates in some markets to increase portfolio yield.”