Bring Home 9.0% YTM with Conn’s Inc., Bonds Maturing July 2022

This week’s bond review delves into the retail sector with a specialty retailer of durable consumer goods who also offers its customers financing on their purchases. Conn’s Inc., which is headquartered in Texas, has a market presence that stretches across the southern United States. Conn’s set some records in its most recent quarterly results (third quarter for its fiscal year 2019).

  • Record third quarter retail gross margin of 41.2%
  • Record quarterly credit segment revenues of $89.9 million.
  • For the first nine months of fiscal year 2019, the company registered its second highest nine month operating income ever
  • Excellent interest coverage of 2.4x.