Conn's fiscal second-quarter net income fell 8 percent as expenses rose.
The Woodlands, Texas-based retailer's profit came in below analysts' estimates, and it cut its full-year profit guidance.
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The stock tumbled before the market open on Tuesday.
Conn's earned $17.7 million, or 48 cents per share, for the three months ended July 31. That compares with $19.2 million, or 52 cents per share, a year earlier.
Expenses increased to $319 million from $237.5 million.
Excluding one-time items, earnings were 50 cents per share. Analysts predicted 75 cents per share, according to a FactSet survey.
Revenue climbed 30 percent to $353 million from $270.7 million as furniture and mattress sales surged. Wall Street expected $353.9 million.
Sales at stores open at least a year, a key indicator of a retailer's health, rose 11.7 percent. This figure excludes results from stores recently opened or closed.
Conn's Inc. sells couches, TVs and refrigerators at its stores nationwide. It also provides credit to customers who need it to purchase items.
The company now foresees full-year earnings in a range of $2.80 to $3 per share. Its prior outlook was for $3.40 to $3.70 per share. Analysts forecast $3.54 per share.
Conn's said that the revised guidance was mostly because of worsening 60-day-plus credit delinquency rates and the issuance of $250 million in debt in July.
The company's shares dropped $12.02, or 26.8 percent, to $32.81 in premarket trading.