Home Aaron’s Q3 Beats Wall Street Expectations
October 25, 2022
Aaron’s Q3 Beats Wall Street Expectations
Posted In: Retail Articles

By

Aaron’s managed to beat Wall Street estimates for earnings and revenues in the third quarter despite a GAAP loss.

Aaron’s posted a net loss of $15.6 million, or 51 cents per diluted share, versus net earnings of $24.3 million, or 73 cents per share, in the year-prior period. Adjusted for one-time events, net earnings were $9.7 million, or 31 cents per diluted share, versus $27.6 million, or 83 cents per diluted share, in the year-earlier quarter.

Aaron’s adjusted diluted earnings per share topped MarketBeat-published analyst consensus estimates of 16 cents for earnings and of $558.5 million for revenues.

Aaron’s comparable revenues slid 7.7% after gaining 4.6% in the 2021 quarter, the company reported. The BrandsMart business saw product sales decrease 0.5% versus an increase of 9.6% in the quarter a year past. Net revenues were $593.4 million versus $452.2 million in the year-previous quarter. E-commerce revenue grew 11.1% in the period year-over-year at Aaron’s business and by 18% at BrandsMart. Operating loss was $17.1 million versus operating profit of $33.2 million in the year-before quarter, Aaron’s noted.

Douglas Lindsay, Aaron’s CEO, said, “This quarter, we delivered solid financial results in what remains a challenging economic environment. Our ongoing strategic investments in centralized lease decisioning, e-commerce, the GenNext store program, and BrandsMart all contributed to these positive results as we continue to transform our customers’ in-store and digital experience.”

Aaron’s acquired BrandsMart on April 1. Aaron’s includes the namesake business, BrandsMart U.S.A., BrandsMart Leasing and Woodhaven. Aaron’s offers direct-to-consumer, lease-to-own services through some 1,300 company-operated and franchised stores in 47 of the United States and Canada, as well as its e-commerce platform. BrandsMart U.S.A. is an appliance and housewares retailer with 10 retail stores in Florida and Georgia. BrandsMart Leasing provides lease-to-own options to customers of BrandsMart U.S.A. Woodhaven is Aaron’s furniture manufacturing division.

Pin It on Pinterest