Conn’s Inc (NASDAQ: CONN) stock surged 18.30% on September 3rd, 2019 (as of 7:16 am GMT-4 ; Source: Google finance) after the company posted better than expected results for the second quarter of FY 20. The company has reported a profit of $20 million compared with $17 million, a year ago. Adjusted EBITDA was $54 million or 13.5% of total revenue for the second quarter of fiscal year 2020 compared to $50.4 million or 13.1% of total revenue for the same period last fiscal year.
Moreover, finance charges and other revenues were a second quarter record of $94.8 million, up 7.5% from the same period last fiscal year. The increase versus the second quarter of fiscal year 2019 was primarily due to a 60 basis point increase in the portfolio yield to 21.9% as well as higher retrospective insurance income compared to the prior fiscal year period.
CONN in the second quarter of FY 20 has reported the adjusted earnings per share of 62 cents, beating the analysts’ estimates for the adjusted earnings per share of 50 cents, according to Analysts polled by FactSet. The company had reported the adjusted revenue growth of 4.3 percent to $401.1 million in the second quarter of FY 20, beating the analysts’ estimates for revenue of $398 million. Although total same store sales decreased 2.3%, reflecting the continued impact of Hurricane Harvey, but the total retail sales increased 3.3% for the second quarter of fiscal year 2020 and same-store sales were positive in non-Hurricane Harvey impacted markets. Same-store sales in non-Hurricane Harvey impacted markets increased 0.4%, primarily due to higher sales within the home appliance and furniture and mattress categories. In fact, total same-store sales of the home appliance category were up 3.4% during the second quarter and outpaced industry growth as the company have continued to enhance the better/best assortment and go-to-market strategy. For the quarter, same-store sales in hurricane impacted markets were down 9.3%, which is the smallest decline over the last four quarters and is a 550 basis point improvement compared to the first quarter. The e-commerce sales, which are included in same-store sales, the second quarter reflects the transformational increase in web visits, online applications and e-commerce sales. For the second quarter of fiscal year 2020, e-commerce sales were $3.2 million, which is approximately 20% higher than total e-commerce sales for all of last fiscal year. Application volume increased sequentially as result of improvements in online platform after the first quarter of fiscal year 2020 transition to the new website
For its third quarter 2020, the company said it expects retail sales growth between 4% and 8% as well as same-store sales between a decline of 3% and a gain of 1%