Net sales by category: Furniture and mattress: $111.29M (-3.8%); Home appliance: $83.72M (-5.8%); Consumer electronics: $96.42M (-4.2%); Home office: $25.48M (-16%); Other: $5.02M (-3%); Repair service agreement commissions: $30.77M (-4.3%); Service revenues: $3.2M (-14.4%).
Credit revenue slipped 4.1% to $76.6M.
Furniture unit volume fell 18.4% & mattress unit volume -13.5%.
Home appliance unit volume dropped 6.9%.
Consumer electronic unit volume squeezed 9.7%.
Home office unit volume curbed 13.6%.
Retail gross margin expanded 280 bps to 38.9%.
Operating margin grew 380 bps to 15.7%.
Retail store count +10 Y/Y to 113.
FY2017 Guidance: Same-store sales: down mid-teens; Retail gross margin rate: 37.5% to 38%; SG&A expense rate: 30.5% to 32%; Provision for bad debts: $56M to $60M; Finance charges and other revenues: $74M to $78M; Interest expense: $22.5M to $24M