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Conn’s Inc. (CONN) – Selling Deep in the Heart of Texas and Louisiana

Conn’s Inc. is a specialty retailer with headquarters in Beaumont, Texas. As part of the Electronic Stores business sector, they trade on NASDAQ. Their current market capitalization is $368.06M. The company has a rich history, being in business for over 110 years.

Conn’s began in 1890 as a small plumbing company, selling products for the trade. They were a one-store organization until the 1960s, when they branched out into a multi-store operation. By 1994, they were a $100M-dollar company. Total revenues for the quarter ended April 30, 2008 alone were $218.6M.

The company’s product lines consist of consumer electronics, which are approximately 31 percent of their business. They also sell major home appliances, which account for 28 percent of their business. These electronics include plasma and LCD flat-panel televisions, DVD players, camcorders, and digital cameras.

Conn’s sells computers, video gaming systems and other small electronics, which account for 12 percent of their revenues. They also sell lawn and garden products in their stores, as well as mattresses and furniture. They strive to offer a wide range of products in all price points to their customers.

The company is the ninth largest retailer of home appliances in the U.S. Their main competitors are retailers that sell primarily major electronics, along with some small electronics. Conn’s has a large credit department, which finances almost 60 percent of what they sell.

The company operates 71 retail locations in Texas and Louisiana. They also have a handful of distribution centers in Texas. The company believes the key to their retail success is their commitment to credit, distribution, service, and training. They choose to make not just a sale to their customers, but to build life-long relationships with them for long-term, sustained growth.

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