THE WOODLANDS, Texas (AP) - Shares of Conn's Inc. rose Monday after the retailer said its first-quarter net income rose 28 percent on higher demand for furniture and mattresses. Its results topped analysts' expectations.
Conn's, which is based in The Woodlands, Texas, sells couches, TVs and refrigerators at its 80 stores around the country. It also provides credit to customers who need it to purchase items.
The retailer said furniture and mattress sales jumped nearly 65 percent from a year ago and made up a third of its total revenue for the first quarter. CEO Theodore Wright said new stores and new products also helped boost sales.
Sales at stores open at least a year rose 16 percent in the first quarter from the same period a year ago. That growth continued into May, with sales at stores open a year up 13 percent during the month from a year ago. Sales at stores open at least a year is considered a key indicator of a retailer's financial health. It strips away the impact of recently opened or closed stores.
Conn's said net income rose to $28.5 million, or 77 cents per share, in the three months ending April 30, compared with $22.2 million, or 61 cents per share, in the same quarter a year ago.
Its adjusted earnings rose to 80 cents per share. Analysts surveyed by Fact Set expected earnings of 73 cents per share.
Revenue rose 34 percent to $335.4 million from $251 million. Analysts expected revenue of $328.9 million.
It reaffirmed its earnings guidance of $3.40 to $3.70 per share for the year. Analysts expected earnings of $3.52 per share for the year.
Its shares rose $3.07, or 6.6 percent, to $49.71 in midday trading Monday. Its shares had fallen more than 40 percent so far this year through the end of last week.