Conn's sees Q3 SSS down 9% to down 5%, provision for bad debts at $56M-$61M
The company states: "The turnaround underway in credit continues and has provided the company with flexibility to withstand Hurricane Harvey's impact on credit results. In addition, the requirement that all in-house credit customers have property insurance has insulated the company's net exposure to credit losses from Hurricane Harvey, as well as provided protection for customers. Provision for bad debts for the third quarter of fiscal year 2018 is expected to be between $56.0 million and $61.0 million. Conn's believes this captures the estimated losses associated with loans effected by the storm. Same store sales during August and September were affected by approximately 100 lost selling days and reduced traffic associated with Hurricane Harvey. Beginning in mid-September, Conn's started to experience positive sales trends, as sales within Southeast Texas benefited from rebuilding activities. October's month-to-date same store sales in the markets impacted by Hurricane Harvey are up over 15.0%. In addition, same store sales trends in markets outside of Hurricane Harvey have started to improve as the company fully lapped meaningful underwriting refinements made last fiscal year. October month-to-date same store sales in markets outside Southeast Texas are down approximately -7.0%. As a result, the company expects same store sales for the third quarter of fiscal year 2018 to be down -5.0% to -9.0%."