Aaron's Q1 Net Drops

Aaron'sATLANTA-Lagging revenues and a spike in expenses cut 24.8 percent from Aaron's first-quarter net income, which totaled $38.3 million.

Net revenues in the quarter, which ended on March 31, slipped by 1.3 percent to $585.4 million. Sales at the company-operated retail stores edged up 0.6 percent in total, but same-store revenues and customer counts for the company-operated stores and franchised stores were down 1 percent and 1.8 percent, respectively, in the quarter. Ronald Allen, Aaron's CEO, said about 70 percent of the company-operated stores felt the impact from the severe winter weather through much of the quarter.

Operating expenses were up 5.9 percent in dollars and 307 basis points as a percentage of sales, to 45.2 percent. Gross margin increased by 39 basis points to 15.7 percent.

Looking ahead, Allen said Aaron's is anticipating better results stemming from its recent acquisition of Progressive Finance, a provider of virtual lease-to-own programs, and the company's strategy to grow sales, expand operating margin and increase its cash flow from its core business. He said that "we believe we are now better positioned as a leader in our industry, better positioned to serve our customers and better positioned to drive shareholder value."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money