Aaron's Q4, Fiscal-Year Net Plummet
February 7, 2014,
ATLANTA-Ending a difficult year, Aaron's posted a 38.1 percent drop in fourth-quarter net income to $22.7 million, bringing its full fiscal-year net income to $120.7 million, down 30.3 percent from the prior year.
Total revenues for the specialty retailer were down 2 percent to $553.9 million in the quarter, which ended on Dec. 31. For the year, total revenues finished up 1 percent to $2.2 billion. In commenting on the year, Ronald Allen, Aaron's chairman, president and CEO, characterized 2013 as "a year of challenges and change ... and growing revenues and adding customers has been difficult with the ongoing economic pressures on low- to middle-income consumers."
Operating expenses in the quarter rose 8.3 percent in dollars and 452 basis points as a percentage of sales, to 47.5 percent. Gross margin increased 246 basis points to 81.2 percent.