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Conn's Tumbles on Growing Credit Losses

While Conn's retail business is putting up decent numbers, the credit business is what drives retail sales for the company, and growing losses are a concern. Any tightening of lending standards could have a negative impact on sales, since Conn's finances nearly 80% of sales through its own in-house credit business.

Now what:

Going forward, Conn's will need to find a balance between its retail and credit operations. If Conn's can't return its credit business to profitability, it will be difficult to argue that its business model makes much sense. CEO Norm Miller, who took over the company in September, is optimistic that Conn's can be turned around. "I've been CEO since September 2015 and over this short tenure I am increasingly confident in Conn's differentiated business model, growth opportunities, and value to customers. I'd like to thank all of Conn's stakeholders for their support during my transition, and I look forward to sharing our success with our shareholders as we focus on putting Conn's back on a path to sustainable long-term profitability and growth in the coming quarters."

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The article Conn's Tumbles on Growing Credit Losses originally appeared on Fool.com.

Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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