Revenue during the quarter dropped 8.55 percent to $355.83 million from $389.11 million in the previous year period. Gross margin for the quarter expanded 422 basis points over the previous year period to 51.68 percent. Total expenses were 94.33 percent of quarterly revenues, down from 96.75 percent for the same period last year. This has led to an improvement of 242 basis points in operating margin to 5.67 percent.

Operating income for the quarter was $20.18 million, compared with $12.66 million in the previous year period.

“We are encouraged by our fiscal 2018 first quarter financial performance, operating results and strong retail profitability which is all underscored by ongoing progress with our credit business,” commented Norm Miller, Conn’s chairman, chief executive officer and president. “Conn’s credit segment performance is improving as a result of higher finance charges, strengthening portfolio trends, controlled expenses, and lower borrowing costs. Interest income and fee yield of 18.2% was the highest since the fiscal 2015 fourth quarter as a result of the strategies we have implemented to increase yield. Approximately 84% of our current originations have a weighted average interest rate of 28.6%, compared to almost 22% in September. As higher rate originations become a larger percentage of Conn’s credit portfolio, we now expect interest income and fee yield will ultimately increase to 23 - 25%.”