Conn’s, Inc. Announces Enhanced Growth Strategy
January 20 2022 - 8:00AM
Conn’s, Inc. (NASDAQ: CONN) (“Conn’s” or the
“Company”), a specialty retailer of furniture and
mattresses, home appliances, consumer electronics and home office
products, and provider of consumer credit, today announced that
members of its senior leadership team will present details of the
Company’s enhanced strategic growth plan and financial and
operating goals at an Investor Day, which is being webcast today at
8:00 am CST. Conn’s is well-positioned to drive profitable growth
and create sustained value for shareholders by strengthening its
core business, enhancing its credit business and accelerating
eCommerce growth.
“I believe Conn’s is a stronger company today than at any other
time in our 132-year history and I am excited by the opportunities
we have to leverage our assets and capabilities to drive
sustainable growth and profitability for years to come,” said
Chandra Holt, Conn’s President and Chief Executive Officer. “We
have a powerful and unique business model aimed at elevating our
customer’s home life to home love, which we believe will create
meaningful value for our customers, employees, communities and
shareholders.”
During the 2022 Investor Day the Company will outline the
Company’s enhanced strategic growth plan and introduce financial
goals aimed at creating long-term shareholder value. Three year
financial and operating goals include:
- Growing total revenues to
approximately $2.0 billion to $2.2 billion, representing an
estimated 9% to 12% CAGR;
- Increasing eCommerce revenues from
approximately 6% of total retail revenues in Q3 of fiscal year 2022
to approximately 20% of total retail revenues;
- Continuing Conn’s geographic
expansion;
- Maintaining a stable credit
business, producing at least 1,000 basis points of credit spread;
and
- Producing a high single digit EBIT
margin.
“We believe we are well positioned to achieve our future
financial goals because of the unique value we provide our
customers. As we pursue our mission of elevating our customers home
life to home love, we believe our value proposition is well
positioned to serve more customers across our growing unified
retail platform,” concluded Ms. Holt.
Investor Day Webcast
Conn’s 2022 Investor Day will begin at 8:00 a.m. CST today. The
event includes presentations by members of Conn’s senior leadership
team and will be followed by a live question-and-answer session. To
access the live webcast, visit the Conn’s Investor Relations page
at https://ir.conns.com at least 15 minutes prior to the
presentation to register for the event. A replay of the webcast
will be available shortly after the conclusion of the live
event.
About Conn’s, Inc.
Conn’s is a specialty retailer currently
operating 150+ retail locations in Alabama, Arizona, Colorado,
Florida, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North
Carolina, Oklahoma, South Carolina, Tennessee, Texas and
Virginia.
The Company’s primary product categories
include:
- Furniture and
mattress, including furniture and related accessories for the
living room, dining room and bedroom, as well as both traditional
and specialty mattresses;
- Home appliance,
including refrigerators, freezers, washers, dryers, dishwashers and
ranges;
- Consumer
electronics, including LED, OLED, QLED, 4K Ultra HD, and 8K
televisions, gaming products, next generation video game consoles
and home theater and portable audio equipment; and
- Home office,
including computers, printers and accessories.
Additionally, Conn’s offers a variety of
products on a seasonal basis. Unlike many of its competitors,
Conn’s provides flexible in-house credit options for its customers
in addition to third-party financing programs and third-party
lease-to-own payment plans.
This press release contains forward-looking
statements within the meaning of the federal securities laws,
including but not limited to, the Private Securities Litigation
Reform Act of 1995, that involve risks and uncertainties. Such
forward-looking statements include information concerning our
future financial performance, business strategy, plans, goals and
objectives. Statements containing the words “anticipate,”
“believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,”
“project,” “should,” “predict,” “will,” “potential,” or the
negative of such terms or other similar expressions are generally
forward-looking in nature and not historical facts. Such
forward-looking statements are based on our current expectations.
We can give no assurance that such statements will prove to be
correct, and actual results may differ materially. A wide variety
of potential risks, uncertainties, and other factors could
materially affect our ability to achieve the results either
expressed or implied by our forward-looking statements, including,
but not limited to: general economic conditions impacting our
customers or potential customers; our ability to execute periodic
securitizations of future originated customer loans on favorable
terms; our ability to continue existing customer financing programs
or to offer new customer financing programs; changes in the
delinquency status of our credit portfolio; unfavorable
developments in ongoing litigation; increased regulatory oversight;
higher than anticipated net charge-offs in the credit portfolio;
the success of our planned opening of new stores; technological and
market developments and sales trends for our major product
offerings; our ability to manage effectively the selection of our
major product offerings; our ability to protect against
cyber-attacks or data security breaches and to protect the
integrity and security of individually identifiable data of our
customers and employees; our ability to fund our operations,
capital expenditures, debt repayment and expansion from cash flows
from operations, borrowings from our revolving credit facility, and
proceeds from accessing debt or equity markets; the effects of
epidemics or pandemics, including the COVID-19 outbreak; and other
risks detailed in Part I, Item 1A, Risk Factors, in our Annual
Report on Form 10-K for the fiscal year ended January 31, 2021 and
other reports filed with the Securities and Exchange Commission. If
one or more of these or other risks or uncertainties materialize
(or the consequences of such a development changes), or should our
underlying assumptions prove incorrect, actual outcomes may vary
materially from those reflected in our forward-looking statements.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. We disclaim any intention or obligation to update
publicly or revise such statements, whether as a result of new
information, future events or otherwise, or to provide periodic
updates or guidance. All forward-looking statements attributable to
us, or to persons acting on our behalf, are expressly qualified in
their entirety by these cautionary statements.
CONN-G
S.M. Berger & Company
Andrew Berger (216) 464-6400
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