The Chilling Thing Subprime Retailer Conn’s Said About the Sudden Deterioration in New Accounts

by Wolf Richter
Wolf Street

Rising first-payment defaults and 60-day delinquencies, which are “leading indicators,” caused the retailer to become “prudent.” Shares plunged 33%.

Conn’s – a retailer with 137 stores in 14 states that sells household goods and electronics to subprime customers preferably financed at blistering interest rates or on a lease-to-own basis – had a five-year anniversary of a crash on December 10.

Its shares plunged 33% on Tuesday after it reported earnings, on issues that included credit deterioration among its subprime customers.

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