Aaron's Lowers Projections for Q4 Earnings, Revenues
January 14, 2014,
ATLANTA-Based on revenue and customer growth that have not met expectations, Aaron's said its fourth-quarter earnings will be less than planned.
Earnings per share are now expected to range between 27 cents and 31 cents, down from the previous projected range of 38-42 cents a share. Revenues are now expected at $555 million, down from the previous estimate of $575 million.
Ronald Allen, the retailer's chairman, president and CEO, said same-store revenue and customer traffic in Aaron's company-owned stores declined by about 1 percent in the quarter. In addition, shipments of products to Aaron's franchised stores were less compared to the fourth quarter of last year. Franchisees did experience positive same-store revenue and customer growth during the quarter, Allen said.
Fiscal-year 2014 revenues are now expected at about $2.3 billion. New-store growth will range between 1 and 2 percent over 2013.