and profitability support to quarter second investments we Improving margin in our our to gross and begin year welcome $X.XX and quarter overview earnings we achieving share. Good of in our an the with provides of year from continued quarter addition financial per opportunity demonstrate complete same-store ability morning and both powerful in second period quarter of sales second then the retail second Conn’s Lee with for the growth continue growth. Results to prior the prepared GAAP sales model comments increase and significant profitable The on enhance operation. call on improvement total fiscal segment focus X.X% additional diluted the driven share earnings. increase the remarks to credit will retail results. earnings record with per meaningful a with us I and fiscal contributed greater positive year will business grew the to together all a performance, our diluted and XXXX XXX% by new record credit conference XXXX retail call. driving created to make have and stores
the milestones achieved plus to we multiple GAAP delinquency retail the improved credit income. record XX second earnings sales, of quarter levels we segment interest all achieved diluted other the share record in and margin, credit quarter consecutive net best operating to and expense segment addition several positive second revenues day years quarter, and Same-store produced gross during a and In the have including second per yield.
years retail of execution I why the and Officer retail drove we additional so continually as the within for need success collections in President a the all Before and for promotion future, has a segment we I I announced critical Operating are is morning. be departure value a specific need role our into strong the heard Davis credit our President department, also model the results the the we an the that of pursuing ensure am Since place and active responsible and throughout recent would have trends we Today, me review and in to and to organization credit but is his pleased produce Collection. pursuing operation. our leading growth has I of to unique our we of optimistic in our transformation quarter the responsibilities additional credit have all announce X leadership. in leadership continue we to are Credit some CEO and achieve that the announced we over permanent go replacement. we people to performance confident for that will right C.R. you of oversight and search our goals. of our our C.R.’s wish more and JD’s business right I changes this to retail endeavors. I retail him much assumed JD throughout successful, underway will John business. of experience, played to I morning’s ago, our aspects are our talk credit review create call, about and temporarily like am future to ongoing shareholders, drive second have Conn’s With and Conn’s now strategies this Later became Chief for create I of to best the consistent company. and strategies Gaines for knowledge improve our value retail about importance
create produce growth and credit shareholders. this can is are At XX% execution model of for and to value We our powerful our near-term addressing retail risk. X% believe while business extremely these challenges level consistent managing significant model annual growth of
at with portfolio let’s favorable quarter credit composition consecutive in our highlights, credit segment income. second the contributed operating credit positive with starting detail So of more Improving look trends to and results these our quarter second business.
compared which year to prior the fee to Our increased XXX in basis percentage and the points credit difference spread is XXXX XXX year interest basis period. income fiscal for between charge-off and net the second of yield quarter points
For years. including portfolio yield quarter XX our the in that XX in basis delinquency performance. a first basis net improvement XX% we quarter which were fees already confident a originations in XX quarter, be goal plus This am from from net will nearly to the our second record X% are yield the XX.X% fiscal points the interest day period are level X.X% I in XX% declined quarter representing a months. rate decline XXXX. of for $XX.X rate the year the of million result our first second was entire Segments drove first point to report to X increased year income current of and portfolio the that producing XX% at rate second pleased our within interest record, the XXX as higher better and quarter prior and from charge-off and
XX fourth improving points In basis rate the quarter delinquency plus is day addition, on year-over-year the this declined has rate a basis which year-over-year consecutive XXX shown trend.
the portfolio in accounts re-aged same quarter was of accounts period including the prior of plus that day portion on rate previously XXX the XX re-aged lower marks versus was three balances the declined at lower basis this July rate percentage months. the accounts consecutive of the XX, TDR at improved. XX over and The the has points Looking re-aged performance Overall of significantly delinquency the XXXX, points TDR delinquency the portfolio fourth prior than year approximately the year. past basis
to period XX.X%, losses, a year Looking also outstanding quarter of that were percent charge-offs quarter. at credit year. is annualized improvement balance charge-offs over this basis as were million It the last the the $X important point net prior average lower note XXX to compared same
tax on first were charge-offs quarter have to due higher seasonality benefits expected performance. primarily sequentially As the and the reforms
our have quarter fourth a year accounts $XXX process develop fiscal a recovery and charged-off we meaningful stated to on convert last call dollars. accounts off. pay infrastructure continue have investments and As robust therefore to made to balance XXXX, charged-off the since to over recovery opportunity million a we of we of of accumulated have The
recovery this During the in prior fiscal improvement than year perform demonstrating collection recoveries fiscal year collected area. year. continued to in improving fiscal million of capabilities expectations fiscal significant charge-offs XXXX compared last portfolio and We of year $X.X $X.X trends fiscal better the million $XX quarter and XXXX than second XXXX to period will Based year. believe year same fiscal $X.X enhanced year cumulative million full to in the XXXX, for million on for current only be XXXX more we $XX.X the in compared recoveries million year
by controlling remain As loss the encouraged be to we mid-XX% to and terminal our fiscal result We in our continue the risk. XXXX range. a appropriately expect believe underwriting trends current are year for rate origination standards vintage loss
second results Our demonstrate better quarter credit operating performance trend. and credit favorable
over the for operating This for million of to the a execution X year year loss of income income is XXXX. are period. fiscal to was XXXX first in am plan, X-month credit operating positioned first million of which pleased transformation $XX.X and significant interest improvement a of of strength well the reduction million I fiscal the extremely with years expense our For segment performance this a also point segment we a have first continued credit segment half half our result year successful to well-run has of compelling half the credit basis $XX our retail we in our support to credit million of opportunity. growth and past months. of foundation goal loss place, next appropriate our With $X.X the compared operation over a of $XX.X XX a segment contributed spread XXXX achieve fiscal over the XXXX credit the credit
retail for the fiscal our grow of and second review performance the opportunity look excited let’s about are we quarter sales. retail so to at why year tremendous So, XXXX
record of retail was driven by positive during sales, performance stores quarter retail new the margin. gross and Our the contribution same-store
total with year increased retail the up sales period. the for same-store in quarter time X.X% first years X over prior sales Second
imposed sales, despite the weaker sales in and category a headwinds the of lease-to-own quarter appliance Second recently challenges as mattress tariffs industry. increased in expected than result
In a efficiency. to promotional on product July record performance and a and mix fell impacted Margins X margin to this we categories, Retail addition, believe higher product benefit from holiday important also and focus period. was which during our Wednesday, favorable exceeded XX.X%. improve traffic expectations our initiatives on gross margin continue within
couple have gross the to as While same we not to believe of basis, increase further are margin the we still a at on we expand retail margin expect there opportunities years. over retail year-over-year do past magnitude experienced
at merchandising some sales, conversion platform: to of highlights marketing, compelling of opportunity these influencing retail execution. drivers strategies initiatives our and With the look and market the capitalize our performance, let’s utilization to three on components our in-store to retail and credit optimize
perspective new of increase is our approximately With overall engagement call, our into a we amount XX durable in the experience fresh health. As brings days his Chief strategies he advancing announced who his to and a last space, on Marketing brand hired consumer marketing role. Officer now on vast
and As will are quarters plans his how in future tenure our update increases, we developing. investors
is the are product the office and merchandising our to categories to a ago, aligned offering last a strategies by merchandising retail plan of have execution operation improve developed produced to we with and XX sales X we to And quarter and is within across second drive growth line the office sales expanding up office merchandising putting into in the since positive the year our sales of product experience this fiscal a months of home more this months. turnaround Turning refresh result our home Home within category was strong initiatives. product refresh of a review straight all significant encouraging. of assortment same-store this refresh, our of with the subsequently strategy action are the point merchandising year full example retail same-store successful The conducted and an refreshing About retail fit assembled the category. our team category. categories. There during opportunities meaningful team XX.X XXXX. have revamping quarterly The team customer were X.X% best percentage implemented This office over same-store we our of preferences. included swing better home assortment products and the component a
success to other the refresh our on to Over we our product be update assortment high a categories. next business. focused office in major furniture important replicating of of year, this drive will includes home sales margin the This
was the successful One second and of new accessories the category furniture quarter. of the first home wall art efforts programs in in launch the
occur to furniture our over upholstery, in will bedroom dining assortment updates quarters. the four category, next and Additional particularly
business category introducing new and quarter, electronics all during stores add which is incremental sales well the our bar quarter of we the stools headed business. holiday now bundles produced recent we are across is positioned The to category incremental our furniture across Within team during important this products. gaming launching chain believe our also this season. our introduction second the growth into our merchandising in of Our consumer will segment third complementary
are robotics improve to to are and I the encouraged test next assortment several and expand underway. store There home by over multiple We our products. also across am strategies and product adding base our the successful quarters vacuums smart opportunities continuing merchandising
is the on the upgrading the leadership model quality our need top segment, are us. same-store execution. making training, you experience customers the retail but we our the are support within and This to growth enhancing positive priority team lot and trends interact and it see with of of of easier low field our retail As we there management, customer focused single-digit can expect produced improve sales associate to continue for to we believe can improving
our of top shows percent X The attachment lease-to-own stores indicators which our between as execution difference of traffic, credit a the important ratings. customer approximately include XX performance and these sales, distinct a retail Analyzing of as indicators sales rate, closing across bottom we to applications and define districts districts.
was sales three the During X%. quarter, X%. compares was of districts the which This of approximately bottom approximately top up second performance three average our average to the same-store our districts down
Our us new them team both to our top managers by the properly Strong retail to gives a of that goals support and districts. upgrade accountable management of that drivers our variability attracting, expectations include districts the execution. developing their leaders support to which are are bottom performing and confidence store performing Therefore is existing and districts continuing function execution. base motivate, improve and and members we primarily geographies between while holding train talent sales and retail key nurturing district and store our top experience
lease-to-own are today. ultimately and to grow lease-to-own a XX% committed at we sales. sales certain sales can retail districts sales, to Progressive remains total this partner approaching lease-to-own specifically Looking level of continue believe In
sales Progressive. the quarter higher the basis prior our of rate which period call underperformed rate prior average would decline. like historical even previous our that the company though under still time out transition transactions penetration the quarter-over-quarter for than points to the second lower lease-to-own XXX second to districts lease-to-own over excluding provider other our caused the in with to the average to quarter during are I However,
We accountability to lease-to-own penetration with the indications driving training third expect are improving force rate. greater compensation lease-to-own rates quarter penetration show our of levels. we Early quarter sales second includes from which our managers retail increasing and increase and results linking amongst
time better, on our complete shows third same-store are execution take retail We get will but it our our of confident aligned is transformation performance. guidance districts to retail sales all and as getting our quarter
efforts to addition, third by will quarter the will begin and underway third impacted In our business stronger overall got plan. grow new lapping be continues opportunities growth same-store previous third fourth This during and remains we the investing to sales comparison. year. quarter both rebuilding in during an important in the of our There Harvey comparison quarter stores our profitably impact meaningful sales of markets same-store as Hurricane fiscal retail part
total stores nine of XXXX, year recently new year. third open a fiscal In stores includes of opened During seven in Virginia the plan first store quarter we we to during stores half two the opened. we the to open which new plan we which including fiscal the to one three
confidence Our in new stores retail are expansion with plan. performing our us well and increasing providing
existing to fiscal of are new next we year. XX open result, a a to As planning total approximately XX in stores states
Houston capacity infrastructure to support are growth increase XX our center We construction our efficiency that retail on of also the August retail announced and upgrading of we distribution our and operation. our new will state-of-the-art
strong support positive mid high of and XX%, from growth an rate model a which low conclude So even growth. new consistently to platform retail single-digit credit retail stores. business that Lee, single-digit, to second can over my produce before call turn annual I to results includes our believe quarter prepared demonstrate earnings can significant sales We X% and contribution model the our without retail remarks to same-store
this focused model what leadership powerful level team at on senior achieving. extremely and the Our of this sales is is business becomes
business transformed and applying well-run business. and can credit and we has model been successful am transformation the we drove our approach of retail optimize sizable that Therefore capitalize confident the sophisticated, performance disciplines business of compelling side our and market into our component our overall Our our same the a credit on business to retail I opportunity. of are
direction to to we are our With value over me the let in right the believe headed call this, are shareholders. turn We increasing and for create well-positioned we Lee.
