2023-03-29 06:52:48 ET
Conn's ( NASDAQ: CONN ) shares edged lower in premarket trading after the retailer reported a far wider than expected quarterly loss.
For the fiscal fourth quarter, The Texas-based retailer reported a $1.53 loss per share, $0.67 wider than expected. Meanwhile, a 16.8% decline in revenue from the prior year to $334.9M was a slightly lighter slide than the Street had forecast. Same store sales decreased 21.8% from the prior year quarter as home office and consumer electronics sales slumped. Retail gross margins contracted
“Our fourth quarter performance reflects the actions underway to refocus our efforts on serving our core credit constrained customers as we continue to face the impacts of macroeconomic headwinds and changes in consumer behavior,” CEO Norm Miller commented. “While we believe the economic landscape will remain challenging throughout the coming fiscal year, we are confident that the strategies we are pursuing will enable us to emerge from this period stronger, more focused and better positioned to create lasting value for our customers, employees, and shareholders.”
In particular, he noted investments in e-commerce capabilities that drove record DTC sales in the fourth quarter. During fiscal year 2024, the company plans to open 11 new standalone locations.
Read more on the details of the quarterly results .
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Conn’s posts wider than expected loss, same store sales slump