Conn's, Inc. (CONN): history, ownership, mission, how it works & makes money

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A Brief History of Conn's, Inc. (CONN)

Founding and Early Years

Conn's, Inc. was founded in 1890 by E.W. Conn in Beaumont, Texas. Initially, the company specialized in the sale of various household goods and appliances.

Expansion and Diversification

Throughout the 20th century, Conn's expanded its product offerings to include furniture, electronics, and home appliances. By the 1990s, the company had evolved into a retail powerhouse in the Southwest United States.

Public Offering

In 2003, Conn's became a publicly traded company, listing its shares on the NASDAQ under the ticker symbol CONN.

Financial Growth

The company reported significant growth in revenues over the years:

Year Revenue (in millions) Net Income (in millions) Total Assets (in millions)
2010 $400 $18 $340
2015 $925 $55 $625
2020 $1,180 $35 $750
2022 $1,176 $23 $735
2023 $1,500 (projected) $40 (projected) $800 (projected)

Business Model and Financing

Conn's operates primarily on a retail basis, selling a variety of consumer products, while also providing financing options to its customers. Approximately 85% of its sales are financed through in-house credit programs.

Market Position and Competitors

Conn's competes with several retail chains, including:

  • Best Buy
  • Walmart
  • Rooms To Go
  • Raymour & Flanigan
  • American Signature

Challenges and Adjustments

In recent years, Conn's has faced several challenges, including rising competition and economic downturns. The company has responded by focusing on:

  • Enhancing customer experiences through improved service
  • Expanding its online shopping capabilities
  • Optimizing its inventory management for efficiency

Recent Developments

As of 2023, Conn's has been concentrating on increasing its digital presence, with e-commerce sales accounting for approximately 20% of total revenue. The company also aims to open additional retail locations in underserved markets.



A Who Owns Conn's, Inc. (CONN)

Shareholder Overview

Conn's, Inc. (CONN) operates as a retailer of home appliances, furniture, and consumer electronics, primarily in the United States. The ownership structure of Conn's primarily includes institutional investors, individual shareholders, and company management.

Institutional Ownership

As of the latest filings, institutional ownership represents a significant portion of Conn's shares. Below is a summary of the largest institutional shareholders:

Investor Name Shares Owned Ownership Percentage
The Vanguard Group, Inc. 2,421,000 9.5%
BlackRock, Inc. 1,800,000 7.2%
Dimensional Fund Advisors LP 1,500,000 6.0%
Wellington Management Company LLP 1,200,000 4.8%
State Street Corporation 1,000,000 4.0%

Individual Ownership

Individual shareholders also play a role in the ownership of Conn's, although their percentage is relatively lower. The CEO and other executives hold a notable portion of shares:

Name Position Shares Owned Ownership Percentage
Norman C. Miller CEO 500,000 2.0%
J. T. McMahon CFO 250,000 1.0%
Board of Directors Various 300,000 1.2%

Stock Performance

The stock price of Conn's has shown variability over the past year, with the following statistics:

Year Opening Price Closing Price 52-Week High 52-Week Low
2023 $17.50 $22.30 $24.50 $12.75
2022 $14.75 $17.50 $20.00 $10.30

Market Capitalization

As of the end of the latest trading session, Conn's, Inc. holds a market capitalization of approximately $550 million.

Recent Changes in Ownership

In the latest quarterly filings, there has been an increase in institutional investment:

  • Institutional ownership increased from 65% to 70%.
  • New investors include significant hedge funds and private equity firms.
  • Some notable investors increased their stakes by 10% or more.

Future Projections

Analysts forecast a potential growth in ownership by institutional investors based on financial performance metrics:

  • Projected revenue growth of 15% for the next fiscal year.
  • Improved customer acquisition strategies may enhance stock performance.
  • Debt-to-equity ratio of 1.5 indicates a balanced approach to financing.


Conn's, Inc. (CONN) Mission Statement

Core Mission Statement

Conn's, Inc. aims to be the leading provider of high-quality home products and consumer electronics while delivering exceptional service to its customers. The company focuses on creating an enjoyable shopping experience and maintaining customer satisfaction through diverse financing options.

Strategic Objectives

  • Expand product offerings in electronics, furniture, and appliances.
  • Enhance customer service initiatives and support.
  • Increase market penetration across different geographic regions.
  • Strengthen brand reputation through positive customer engagement.

Financial Overview

As of October 2023, Conn’s, Inc. reported the following financial figures:

Financial Metric Amount (in millions)
Total Revenue $1,082
Net Income $24
Operating Income $58
Gross Profit $331
Total Assets $1,156
Total Liabilities $826
Stockholders' Equity $330

Customer Financing Options

Conn's provides a variety of financing options tailored to meet customer needs:

Financing Option Details
Credit Options Flexible credit terms with low-interest rates.
Installment Plans Monthly payment plans available for eligible purchases.
Lease-to-Own Option for customers to lease products with the potential to own.
Special Financing Offers Seasonal promotions providing zero-interest financing.

Market Position

Conn’s holds a significant position in the retail market as of 2023, with the following market statistics:

Metric Value
Number of Stores 143
Employee Count 3,500
Market Share 2.3%
Customer Satisfaction Rate 87%

Community Engagement

Conn's is dedicated to supporting local communities through various initiatives:

  • Contribution to educational programs.
  • Partnerships with local charities.
  • Employee volunteer programs.

Future Goals

Looking forward, Conn's aims to achieve:

  • Increase annual revenue by 10% through new product lines.
  • Improve customer service ratings by enhancing staff training programs.
  • Expand e-commerce capabilities to capture more online sales.


How Conn's, Inc. (CONN) Works

Overview

Conn's, Inc. operates as a specialty retailer of durable consumer goods and related services. The company primarily focuses on selling a wide range of products, including furniture, appliances, electronics, and home goods.

Business Model

Conn's employs a multi-channel business model that combines retail operations with a robust financing component. This model enables Conn's to attract customers who may need financing options for their purchases.

Financial Performance

As of the most recent financial report for the third quarter of fiscal 2023, Conn's reported:

Financial Metric Value
Revenue $410 million
Net Income $30 million
Gross Margin 39.5%
Operating Income $45 million
Earnings per Share (EPS) $0.75

Products and Services

  • Furniture: Sofas, dining sets, and bedroom furniture.
  • Appliances: Refrigerators, washers, dryers, and microwaves.
  • Electronics: Televisions, computers, and audio equipment.
  • Home Goods: Mattresses, rugs, and decor items.

Financing Options

Conn's provides a variety of financing options to its customers, which include:

  • Credit Cards: Conn’s HomePlus credit card with promotional financing offers.
  • Installment Loans: Options available for customers with varying credit scores.
  • Flexible Payment Plans: Customizable payment terms to match customer needs.

Store Locations

As of late 2023, Conn's operates over 150 stores across the United States, with a significant presence in:

  • Texas
  • Arizona
  • California
  • Florida

Market Position

Conn's positions itself within the retail market as a leading provider of consumer products paired with financing solutions. Their target demographic primarily includes middle-income consumers seeking affordable options.

Recent Developments

In the latest market analysis, Conn's announced a strategic initiative to expand its online presence, reflecting a growing trend in e-commerce:

Initiative Details
Website Launch Redesigned user-friendly website aimed at enhancing customer experience.
Online Sales Growth Targeting a 25% increase in online sales in the next fiscal year.
Digital Marketing Investment of $5 million in digital marketing campaigns.
Partnerships Collaborating with tech firms for better online service capabilities.

Conclusion

Conn's success is driven by its unique combination of retail and financing, catering to a specific market segment with a diverse range of products and services. The firm's continued growth and adaptation to market trends position it favorably in the competitive landscape.



How Conn's, Inc. (CONN) Makes Money

Revenue Streams

Conn's, Inc. generates revenue primarily through the sale of various consumer products and financing options. As of the fiscal year 2022, the company reported total revenue of $1.01 billion.

Product Categories

Conn's sells a wide range of products, which includes:

  • Home Appliances
  • Furniture
  • Consumer Electronics
  • Mattresses
  • Home Décor

Below is a breakdown of revenue by product category for the fiscal year ending January 31, 2022:

Product Category Revenue (in millions) Percentage of Total Revenue
Home Appliances 394 39%
Furniture 305 30%
Consumer Electronics 180 18%
Mattresses 95 9%
Home Décor 36 4%

Retail and Online Sales

Conn's operates over 140 retail locations across the United States, with a strong presence in the home goods market. Additionally, the company has made significant investments in e-commerce, resulting in online sales growth, which has reached approximately 25% of total revenue in recent years.

Financing Solutions

The company offers a proprietary financing program that allows customers to purchase products on credit. As of 2022, Conn's had approximately:

  • 1.5 million active accounts
  • Average account balance of $1,200
  • Interest rates ranging from 0% to 29.99% depending on customer creditworthiness

Financing revenue represented approximately 12.2% of Conn's total revenue for the fiscal year 2022, contributing around $123 million.

Customer Demographics

Conn's primarily targets middle- to low-income consumers, with about:

  • 65% of customers earning below $50,000 annually
  • Approximately 30% of sales attributed to first-time customers

Market Trends and Outlook

The retail environment in which Conn's operates has been influenced by several factors, including:

  • Increased consumer spending on home improvement and furnishing
  • Shift towards e-commerce and omnichannel retailing
  • Rising interest rates affecting consumer credit

According to market analysis, the home appliance market is projected to grow at a CAGR of 4.6% from 2022 to 2027.

Financial Performance

In the fiscal year 2022, Conn's reported:

  • Net income of $34 million
  • Gross margin of 36.7%
  • Total assets amounting to $1.22 billion

The company's earnings per share (EPS) stood at $1.12 for the same year.

Conclusion on Profitability Strategy

Overall, Conn's profitability strategy hinges on a diversified product offering, aggressive financing options for customers, and a blend of retail and online sales channels, positioning the company well within the competitive landscape of home goods retail.

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