Conn's CFO to Resign After Weak Quarter
Conn's announced a slew of bad news Tuesday: A quarterly loss of $3.1 million, a big loss in its credit business, the withdrawal of its guidance for next year, and the resignation of its chief financial officer.
“In the third quarter, we drove significant growth and expanded gross margins in the retail segment, but these gains were more than offset by additional provisions for credit losses. Customer credit scores continue to deteriorate," CEO Theodore Wright said in a statement.
"Despite underwriting changes reducing the percentage of originations to customers with scores below 550, the proportion of customers in late stage delinquency with a score below 550 increased this year, though it has remained relatively constant since the end of the second quarter. As a result, delinquency rates have increased and losses are being realized at a faster pace than originally anticipated."