Why Conns Shares Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Conns (NAS: CONN) have soared today by as much as 10%, after the company reported sales figures for its most recent quarter.
So what: Revenue in the third quarter was $167.3 million. Same stores sales were up 12.6%, and the company closed the quarter with 65 stores. Gross margin expanded a healthy 970 basis points, to 35%. Furniture and mattress sales were particularly strong, while consumer electronic sales lagged.
Now what: Home appliance units fell, but was partially offset by an increase in average selling price. Store closures also contributed to declining unit volumes. The strength in furniture and mattress sales was attributed to enhanced presentation and product selection combined with increased promotional activity.
Interested in more info on Conns? Add it to your watchlist by clicking here.
The article Why Conns Shares Soared originally appeared on Fool.com.Evan Niu, CFA has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.