Conn’s beat an analyst estimate on fourth-quarter loss but fell short of an estimate on revenues.
A loss per adjusted diluted share analyst consensus estimate from Zacks Investment Research was for $1.57. Revenues fell 13.3% short of a Zacks estimate.
Total sales were $293.7 million and total revenue was $366.1 million versus $270.5 million and $334.9 million, respectively, in the year-previous quarter. Operating loss was $50.8 million versus an operating loss of $33.4 million in the year-before period.
Comparable product sales and comp total sales, which includes repair service agreement commissions and service revenues, both fell by 14.4%. Among major operating segments, home appliance and consumer electronics sales slipped, but furniture and mattresses, and home office gained.
Net loss for the full fiscal year was $76.9 million, or $3.17 per diluted share, versus a net loss of $59.3 million, or $2.46 per diluted share, in the year prior. Adjusted net loss was $150 million, or $6.22 per diluted share, versus a net loss of $55.4 million, or $2.30 per diluted share, in the year earlier.
Total sale were $978.3 million and total revenues were $1.24 billion versus $1.08 billion and $1.34 billion, respectively, in the year previous. Operating loss was $125.3 million versus an operating loss of $29.5 million in the year before.
In December 2023, Conn’s announced it completed a transaction that resulted in W.S. Badcock, a southeastern U.S home furnishings operation with 380 stores, becoming a wholly owned Conn’s subsidiary.
“Since completing the transformative transaction with W.S. Badcock in December 2023, we have focused on successfully integrating the two organizations, aligning around a common culture and establishing a platform to drive significant revenue and cost synergies in the coming quarters,” said Norm Miller, Conn’s president and CEO. “As a result of our team’s efforts, we have removed approximately $50 million of combined expenses during the fourth quarter, and we have identified over $50 million of additional cost synergies that we expect to realize over the next 18 months. In addition, during this period, we expect to drive over $50 million of revenue synergies as we transition Badcock’s credit program to Conn’s in-house loan product, offer Conn’s successful e-commerce capabilities to Badcock’s customers, and pursue shared retail growth strategies. While we expect the macro-environment to remain challenging throughout our fiscal year 2025, I am confident that the Badcock transaction combined with existing strategic initiatives underway will position us to emerge stronger and more resilient than ever before. As a result, we expect to experience year-over-year improvements in both retail sales and profitability throughout fiscal year 2025.”
