Aaron's Q1 Net Drops
April 25, 2014,
ATLANTA-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.
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