Conn’s charts three-year growth plan
Conn’s, a specialty retailer with more than 150 stores across 15 states, has its sights on a growth plan that aims to grow total revenues beyond $2 billion, expand its e-commerce program and continue the success of its foray into private label.
The Woodlands, Texas-based furniture, appliances and home store, held an Investor Day call with Chandra Holt, president and CEO of Conn’s. Holt, a former store brands executive at Sam’s Club, was named CEO in August of last year.
As part of the conference, Conn’s highlighted its first private brand launch from last year, a mattress called Dreamspot. The call said Dreamspot is the retailer’s no. 1 selling mattress with 12 items in the assortment. The mattress and box springs are in line to earn around $25 million in its first year of sales.
“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 Holt. “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.”
Three-year financial goals and items of Conn’s strategic growth plan were outlined during the call including growing total revenues to approximately $2 billion to $2.2 billion, representing an estimated 9% to 12% CAGR. Additionally, the company outlined:
- increasing e-commerce 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,” said Holt.