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.
Other Articles By Author
HFN Launches Interactive Idea Book
HFN's DIGITAL EDITION
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