U.S. stock markets were trading in negative territory on Tuesday morning after President Donald Trump suggested leaving Canada out of any new NAFTA deal.
Shares of Conn’s Inc. (NASDAQ:CONN) fell on Tuesday morning after the company posted second-quarter earnings per share of 57 cents on $384.62 million in revenue, reflecting a 4.9% year-over-over growth. It beat earnings estimates by 16 cents and revenue estimates by $0.53 million.
“Second quarter financial results were driven primarily by positive same store sales, the contribution of new store growth, record retail gross margin, and continued improvement in credit segment performance,” Chairman and CEO Norm Miller said. “The initiatives to drive retail growth are starting to take hold and second quarter same store sales increased for the first time since the second quarter of fiscal year 2016, while total retail sales were up 3.5% over the prior year period”.
The retail gross margin was 41.4% and the company recorded its second consecutive quarter of positive credit segment operating income. Further, the company saw its best second-quarter credit spread in four years, which was 750 basis points.
Looking ahead to the third quarter, the company expects a change in same-store sales between -5% and 0% and a retail gross margin between 40.5% and 41% of total retail net sales.
The main European stock markets traded in the red. The U.K.’s FTSE 100 lost 0.62%, France’s CAC 40 lost1.31%, Germany’s Dax slid 1.10% and Spain’s Ibex 35 was flat.
In Asia, Japan’s Nikkei 225 slid 0.05%, India’s BSE Sensex fell 0.40%, Hong Kong’s Hang Seng jumped 0.94% and China’s Shanghai Composite gained 1.10%.
Disclosure: The author holds no positions in any stocks mentioned.
About the author:
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor. He is