Conn’s shares soar 17% premarket after retailer posts surprise profit

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Conn’s Inc. shares soared 17% in premarket trade Thursday, after the furniture and home appliances retailer posted a surprise profit for its fiscal second quarter. The company said it had net income of $20.5 million, or 70 cents a share, in the quarter to July 31, up from $20.0 million, or 62 cents a share, in the year-earlier period. Adjusted per-share earnings came to 75 cents, well ahead of the FactSet consensus for a loss of 4 cents a share. Revenue fell to $366.9 million from $401.1 million, below the FactSet consensus of $378.9 million. E-commerce sales rose 72% from a year ago, as shoppers moved online during the pandemic. Same-store sales fell 13.2%, mostly due to changes in underwriting in the company’s credit department, and supply chain disruptions caused by the pandemic. Shares have gained 11% in the year to date, while the S&P 500 has gained 11%.
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