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Conn’s swings to Q2 loss on charges


Beaumont, Texas -- Conn's said Wednesday it lost $3.4 million in the second quarter, compared to net income of $1.6 million the year before. The company said that the loss was due to one-time charges, which included $3.7 million for closing three stores and $11.1 million for repaying a loan earlier than expected. Without those items, the company would have earned $5.5 million.

Revenue fell 13% to $184.4 million on declining sales of TVs and computers.

Conn's caters to lower-income consumers, with rent-to-own programs and in-store financing. The company said it could still close more stores in the near future. The recently-shuttered stores were in areas where the average household income was nearly $100,000 per year, while and Conn's targets households that make less than $50,000.

As part of its plans for returning to profitability, Conn’s said it expects to open five to seven locations in new markets in 2012. It is devoting more floor space to better-selling -- and higher-margin -- furniture and mattresses.

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