Conn’s Inc. (CONN) stock prices were up 7.38% shortly after market trading commenced on September 1st 2021. This brought the price per share up to USD$26.42 early on in the trading day.
CONN Stock’s Stellar Q2 2021
The second quarter of fiscal 2021 saw CONN stock report retail and credit results that exceeded previous expectations. This demonstrated the successful ongoing execution of the company’s growth strategies. Store sales for the quarter were up 16.4% as compared to the prior-year period, while retail sales reported a 24% year-over-year increase. The strength of the retail business in conjunction with a second-quarter credit spread of 1200 basis contributed to a record-breaking quarter. Earnings per diluted share came out to USD$2.74 for the first half of the fiscal year, which is higher than any annual earnings in the company’s extensive 131-year history.
Raising Guidance
The company reported maintaining promising momentum across its business, reflecting strong consumer demand and the successful execution of growth strategies. Total retail sales for H1 2021 have seen an increase at the fastest growth rate in the past seven years. Accordingly, the company is raising its guidance for the fiscal year 2022 same-store sales from high single-digit same-store sales growth to mid-teens same-store sales growth.
Net Income Reports
Net income for the second quarter of fiscal 2021 came out to USD$37 million, representing a net income of USD$1.22 per diluted share. This is comparable to the net income of USD$20.5 million reported for the prior-year quarter, representing a net income of USD$1.22 per diluted share.
CONN Stock’s Liquidity Position
CONN stock reported a stellar liquidity position as of the end of the second quarter of fiscal 2021. The company reported having USD$8.7 million in unrestricted cash that is available for sure. This is consolidated by the immediate availability of USD$362.9 million in borrowing capacity. These funds are available to the company as a part of its revolving credit facility, which carried a borrowing limit of up to USD$650 million.
Future Outlook for CONN Stock
CONN stock had a promising quarter, as evidenced by the strength of its financial reports. The company is keen to leverage the resources at its disposal as it seeks to maintain the momentum it has generated. Current and potential investors are hopeful that this will usher in organic growth over the long term.
