- The retail business has a significant moat around it given the targeted consumer (lower income) and Conn's ability to offer financing to this buyer.
- Coming out of the pandemic, Conn's is capturing more affluent buyers as well. This serves to de-risk the business model while also broadening the customer base.
- With a new CEO whose most recent job was the head of eCommerce at Walmart, this should be a massive change, with more focus on retail and less on financing.
- There is a very clear progressive shift underway in the US. A significant focus on equality will provide massive benefits for lower income families (Conn's core consumer group).
- Conn's is massively undervalued. The company has generated over $500M in FCF over the last 5 quarters, and the market cap today is only ~$650M.
For further details see:
Conn's HomePlus: Looking For A Quick 50% Move Higher With Multiple Upcoming Catalysts