The Aaron’s Co. easily beat a Wall Street first-quarter earnings estimate even if sales did come up a little short.
Adjusted net earnings per diluted share topped a MarketBeat-published analyst consensus estimate of 68 cents although revenues fell short of a $456.1 million projection.
Comparable store revenues increased 9.6% as compared to the first quarter of 2020 and decreased 4.3% as compared to the first quarter of 2021, Aaron’s reported. Comps increased 14.8% in the 2021 first quarter versus the period in 2020.
Total revenues were $456.1 million down 5.2% versus the year-previous quarter, Aaron’s noted, a decrease the company attributed primarily to lower lease revenue due to an expected normalization in the lease renewal rate and lower exercise of early purchase options partially offset by the increased size of the company’s lease portfolio.
“Our customer lease portfolio continues to perform well, and Aaron’s core business remains on track with the outlook shared last quarter,” said Douglas Lindsay, Aaron’s CEO said in announcing the financial results. “The investments we continue to make in our key strategic initiatives, including our fast-growing e-commerce channel, digital origination and servicing platforms, and high-performing GenNext stores, have enabled us to deliver financial results consistent with our expectations for the quarter.
“In addition, I could not be more excited about the acquisition of BrandsMart U.S.A., which closed earlier this month, and the meaningful value creation opportunities it will provide. We continue to believe the consolidated company is capable of delivering strong revenue and double-digit annual adjusted EBITDA growth over the next five years and beyond.”