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ATLANTA — Lease-to-own retailer The Aaron’s Co. reported a decline in net revenues in the third quarter of FY2023, but its loss shrank compared with the same period a year ago.
The Atlanta-based company, which includes Aaron’s and BradsMart, reported revenues of $525.7 million, down 11.4% compared with $593.4 million across the same three months in 2022. Net loss was $4.1 million, or 13 cents per share, vs. a loss of $15.6 million, or 51 cents per share, in the third quarter of 2022.
Officials attributed the 73.5% improvement in net loss primarily to lower total operating expenses at both business segments, including lower write-offs at the Aaron’s Business segment, partially offset by lower revenues at both business segments.
Adjusted EBITDA for the three month period was $25.3 million, giving Aaron’s an EBITDA margin of 4.813%.
“I am pleased that we delivered third quarter consolidated company earnings ahead of our internal expectations,” said CEO Douglas Lindsay said in a statement accompanying the earnings. “The Aaron’s Business segment is benefiting from our lease decisioning enhancements, which led to lower write-offs and a larger than expected lease portfolio size, despite ongoing challenges in customer demand.
“During the quarter, we opened three Aaron’s stores in new markets and our first new BrandsMart store since acquiring the business, and we remain focused on positioning both businesses for growth.”
Aaron’s adjusted its full year outlook to $2.12 billion to $2.17 billion in revenues, down from $2.12 billion to $2.22 billion. It anticipates net earnings in the $14 million to $17.5 million range, down from the $16.8 million to $25.5 million range with a diluted earnings per share expectation of 35 cents to 50 cents per share, down from 55 cents to 80 cents per share.
