Aaron’s Co. beat a Wall Street earnings estimate for the second quarter, noting that its investment in technology had helped drive gains.
Net earnings for the quarter were $33 million, or 95 cents per diluted share, versus $22.4 million, or 66 cents per diluted share, in the period a year before, according to Aaron’s. Adjusted for one-time charges, net earnings were $36.3 million, or $1.05 per diluted share, versus $27.9 million, or 83 cents per diluted share, in the quarter a year previous.
Aaron’s topped a MarketBeat-published analyst average estimate of 64 cents per adjusted diluted share.
On a comparable basis, lease and retail revenues increased 11.2% in the quarter versus the year-earlier period, the retailer stated, primarily driven by a larger comp lease portfolio size to begin the quarter, growth in the portfolio during the period and strong customer payment activity.
For the second quarter, total revenues were $467.5 million versus $431 million in the 2020 period, Aaron’s reported. The improving size and quality of the company’s lease portfolio and strong customer payment activity during the quarter were the primary sales drivers, partially offset by the planned net reduction of 42 company-operated stores during the 15-month period ended June 30. E-commerce revenues advanced 15.8% in the quarter year over year, Aaron’s noted, and represented 14% of lease revenues compared to 12.8% in the prior-year period.
Operating profit was $44.1 million versus $30.3 million in the quarter a year past, the company indicated.
We are pleased to announce another quarter of strong operating results, a significant return of capital to shareholders and an increase in our revenue and earnings outlook for the full year 2021.
-Douglas Lindsay, Aaron’s CEO
“We are pleased to announce another quarter of strong operating results, a significant return of capital to shareholders and an increase in our revenue and earnings outlook for the full year 2021,” Douglas Lindsay, Aaron’s CEO, said in introducing the financial results. “Robust demand for our products, continued strength in customer payments and ongoing execution of our strategic initiatives have led to a larger lease portfolio generating higher revenues, double-digit earnings growth and strong free cash flow. Our continued investments in customer-focused decisioning technology, digital payment and servicing platforms and both in-store and online shopping experiences are yielding positive results and are collectively driving greater productivity and margin expansion.”
