Profit at Conn's drops 44%

Sales and credit delinquencies weighed on Conn's Inc. in the first quarter even as the company continues to explore the sale of its loan portfolio.

The company reported a 44% net income slide in the first quarter ended April 30. Net income fell to $15.7 million from $28.5 million the same quarter a year earlier, with costs related to store closures, relocations and legal and professional fees contributing.

Conn's announced in October that it would pursue a strategic review that included a sale of the company and/or its loan portfolio.



Conn’s plans to open 15-18 new stores and close two stores during fiscal 2016. Consolidated revenues increased 9% to $365.1 million from $335.4 million due to new store openings, partially offset by a decrease in same store sales of 4.3%



During fiscal 2016, Conn’s says it will discontinue offering video game products, digital cameras and certain tablets. The retailer expects same-store sales growth to range from flat to low single digits.