What Happens When Sales Trumps Profits

Conns Inc. (CONN)

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44.83 0.10(0.22%) Aug 29, 4:00PM EDT

Pre-Market : 33.39  DOWN 11.44 (25.52%) 8:23AM EDT - Nasdaq Real Time Price

You read it right.  Shares of Conns, an appliance chain, are down 25% in premarket after missing estimates for sales and profits.  This is what happens when retailers try to make estimates by cutting prices and offering cheap credit.  Note that the ad promises 0% interest for two years.  Even with the current low rates this is a giveaway and maybe, just maybe it's difficult to collect from someone for a 2-year-old fridge.  We also hear that credit was easy and you know what that can mean for collections.