Conn’s names Moran its new CFO

Every retailer needs a good CFO and that’s especially true at Conn’s where the company’s business model requires balancing the need to grow sales against the charge off risk associated with extending credit to subprime customers.

Conn’s, the 90 store retailer of furniture, bedding, appliances and consumer electronics, named Thomas Moran CFO on July 9. The announcement was made in conjunction with the release of June financial results that showed sales increased 11.9% to $102.6 million, same store sales increased 1.1% and credit accounts 60 days past due increased to 8.9% from 8.2% the same month the prior year.

The slight comp increase was due largely to the company’s decision to exit categories such as video game products, digital cameras and certain tablets, according to Conn’s CEO and Chairman Theodore Wright. Comps increased 11.2% in June the prior year and if the negative effects of the discontinued categories and products are excluded from the current year June results comps would have increased 5.1%.

Wright also noted that sales were negatively affected by the company’s approach to lending.

"Sales volume was reduced compared to the same period a year ago from tighter underwriting implemented during the first three quarters of fiscal year 2015, with an estimated impact of approximately 2% to same store sales in the month,” Wright said.

More noteworthy than the release of monthly results, was the appointment of former West Marine CFO Thomas Moran to serve as Conn’s new CFO. He replaces Mark Haley, Conn’s chief accounting officer, who had filled the position on an interim basis since last December.

"(Moran’s) background in the retail industry, as well as his wealth of financial and public company experience, will provide a valuable addition to our senior leadership team,” Wright said.

Moran joined West Marine as senior vice president and CFO in January 2007 and was promoted to executive vice president in May 2013. Prior to West Marine, he served as the CFO of the Wearguard-Crest Division of Aramark Corporation.