The following is a summary of the Conn's, Inc. (CONN) Q4 2024 Earnings Call Transcript:
Financial Performance:
Conn's, Inc. reported consolidated total revenue for Q4 2024 of $366.1 million, reflecting a 9.3% growth year-over-year.
A noteworthy flip in GAAP net income was noted, from last year's net loss of $42.8 million to a net gain of $43.3 million this year.
Retail revenues jumped 9.6% year-over-year to reach $296.9 million. However, the company suffered a retail segment operating loss of $38.1 million.
Driven by Badcock's receivables, credit revenues increased by 10.4% to $70.8 million.
Business Progress:
Conn's has successfully integrated W.S. Badcock, broadening its retail base to over 550 locations across 15 states.
The company has identified key priorities for the near future, which include transitioning Badcock's services, integrating supply chains and enhancing e-commerce capabilities.
A record e-commerce sales of $109.3 million were achieved, recording a 38.2% growth from the previous year.
The company expects the Badcock transaction to drive material cost savings, increase gross margins, and improve operating leverage.
Conn's plans to optimize product assortment, streamline distribution, and transition Badcock to Conn's delivery and service model, expecting this will lead to significant cost savings and profitability.
Same-store sales performance is expected to benefit significantly from the integration and growth strategies with the ambition of achieving annual adjusted EBITDA of $180 million to $220 million.
More details: Conn's IR
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