Conn’s Inc (NASDAQ:CONN),  a specialty retailer of home goods, including furniture and mattresses, appliances, and consumer electronics, stock fell 4.22% (As on April 12, 11:09:40 AM UTC-4, Source: Google Finance) after the company reported a narrower adjusted net loss for the fourth quarter but missed revenue expectations. The company’s retail segment saw an increase in revenue by 9.6% for the quarter, with Badcock contributing $60.3 million. However, the retail segment’s operating loss widened to $38.1 million from $19.5 million in the same quarter last year. The adjusted retail segment operating loss was $21.8 million, excluding one-time transaction expenses. The credit segment reported a 10.4% increase in revenue, benefiting from the inclusion of Badcock’s financials. The credit segment’s operating loss improved slightly to $12.8 million from an operating loss of $13.9 million in the prior year’s quarter.

Moreover, Conn’s opened one new store in the fourth quarter, adding to the 376 stores acquired through the Badcock transaction, bringing the total store count to 553 across 15 states. The company also strengthened its balance sheet by completing a $252.6 million asset-backed securities transaction, with the Class A bond being 13 times oversubscribed. In addition, the company pursued strategies aimed at improving Conn’s retail performance and better serving Conn’s core credit constrained customers, which drove a 21.6% year-over-year increase in annual credit applications, and a 38.2% year-over-year increase in annual eCommerce sales producing record annual eCommerce sales of $109.3 million.

CONN in the fourth quarter of FY 23 has reported the adjusted loss per share of $1.25, beating the analysts’ estimates for the adjusted earnings per share of $1.31. The company had reported the adjusted revenue growth of 9.3 percent to $366.1 million in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $405.4 million. This is due to an 8.6% increase in total net sales, and a 10.7% increase in finance charges and other revenues. The acquisition of W.S. Badcock, completed in December 2023, contributed $68.4 million to the total revenue. Despite the revenue growth, the company experienced a decline in same-store sales of 14.4%, attributed to lower discretionary spending for home-related products. On a non-GAAP basis, adjusted net loss for the fourth quarter of fiscal year 2024 was $31.0 million, compared to adjusted net loss for the fourth quarter of fiscal year 2023 of $36.7 million, which excludes charges and credits for asset disposal and store closure costs.