By In the fourth quarter, Aaron’s Co. faced challenges as the company’s sales were impacted by smaller purchases, leading to a wider loss.
Financial Performance
The Atlanta-based lease-to-own retailer reported a loss of 41 cents per share in the quarter, a significant increase from the loss of 19 cents per share in the previous year. Analysts, however, had expected a per-share loss of only 3 cents. When excluding certain one-time items, the company’s adjusted per-share loss was 26 cents, far from the 3 cent profit forecasted by analysts.
Revenue Decline
Revenue took a hit, dropping by 10% to $529.5 million, falling short of the $542.1 million expected by analysts. Aaron’s Business recurring revenue written also saw a decline of 4.2%, mainly due to lower average ticket sizes. BrandsMart, another segment of the company, experienced a significant 14% drop in comparable sales.
Future Outlook
Looking ahead to 2024, Aaron’s anticipates revenue to range between $2.055 billion to $2.155 billion, falling below the $2.2 billion mark expected by analysts. Excluding one-time items, the company forecasts a per-share loss of 10 cents to a profit of 25 cents in 2024, contrasting sharply with the $1.09 adjusted profit forecasted by analysts.
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