Atlanta, GA – The Aaron’s Company, Inc. (NYSE: AAN) has announced its financial results for the first quarter of 2024, revealing significant growth and a positive outlook for the year ahead. Despite challenging market conditions, the company reported revenues of $511.5 million, representing a strong start to the year.
One of the key highlights of the quarter was the growth in Aaron’s Business recurring revenue, which increased by 2.3%. This growth was primarily driven by a 6.8% increase in lease merchandise deliveries. Additionally, the company’s e-commerce recurring revenue saw a substantial boost of 94.1%, thanks to the successful implementation of an omnichannel lease decisioning and customer acquisition program.
Although the overall lease portfolio size saw a decrease of 4.8% compared to the previous year, there was a sequential improvement of 220 basis points from the end of Q4 2023. The same-store lease portfolio size also showed improvement, with a decrease of only 1.4% year-over-year, representing a sequential improvement of 300 basis points.
Furthermore, Aaron’s Company experienced positive momentum in April, with lease merchandise deliveries increasing by 18.6%. This growth was largely driven by a remarkable 116.3% increase in e-commerce sales.
“Our first quarter results demonstrate the strength of our business model and our ability to adapt to changing market dynamics,” said CEO Douglas A. Lindsay. “We remain confident in our full-year outlook for revenue and adjusted EBITDA, and we are raising our outlook for non-GAAP EPS due to a lower estimated tax rate.”
Looking ahead, The Aaron’s Company expects revenues ranging from $2.055 billion to $2.155 billion for the full year 2024. The company also anticipates adjusted EBITDA in the range of $105.0 million to $125.0 million. Additionally, the non-GAAP diluted EPS is expected to be between $0.00 and $0.25.
With a strong performance in the first quarter and an optimistic outlook for the future, The Aaron’s Company is well-positioned to continue its growth trajectory in the lease-to-own and retail purchase solutions market. More information about the company’s financial results and outlook can be found at investor.aarons.com.
About The Aaron’s Company, Inc.
Based in Atlanta, The Aaron’s Company, Inc. is a leading omnichannel provider of lease-to-own and retail purchase solutions for appliances, electronics, furniture, and other home goods. The company operates through its various brands including Aaron’s, BrandsMart U.S.A., BrandsMart Leasing, and Woodhaven. Aaron’s offers a direct-to-consumer lease-to-own solution through its stores and e-commerce platform. BrandsMart U.S.A. is a prominent appliance retailer with retail stores in Florida and Georgia, as well as an e-commerce presence. BrandsMart Leasing provides lease-to-own solutions to customers of BrandsMart U.S.A. For more information, visit investor.aarons.com, aarons.com, and brandsmartusa.com.
The article highlights the strong growth and positive outlook of The Aaron’s Company, Inc. in 2024. Despite challenging market conditions, the company reported revenues of $511.5 million for the first quarter, indicating a strong start to the year.
A key highlight of the quarter was the growth in Aaron’s Business recurring revenue, which increased by 2.3%. This growth was driven by a 6.8% increase in lease merchandise deliveries. The company’s e-commerce recurring revenue also saw a significant boost of 94.1%. This growth can be attributed to the successful implementation of an omnichannel lease decisioning and customer acquisition program.
It is worth noting that the overall lease portfolio size saw a decrease of 4.8% compared to the previous year. However, there was a sequential improvement of 220 basis points from the end of Q4 2023. The same-store lease portfolio size also showed improvement, with a decrease of only 1.4% year-over-year, representing a sequential improvement of 300 basis points.
In April, Aaron’s Company experienced positive momentum, with lease merchandise deliveries increasing by 18.6%. This growth was largely driven by a remarkable 116.3% increase in e-commerce sales.
Looking ahead, The Aaron’s Company anticipates revenues ranging from $2.055 billion to $2.155 billion for the full year 2024. The company also expects adjusted EBITDA in the range of $105.0 million to $125.0 million and non-GAAP diluted EPS between $0.00 and $0.25.
One of the key advantages for The Aaron’s Company is its strong business model and ability to adapt to changing market dynamics. This is evident from their strong performance in the first quarter and their optimistic outlook for the future. Additionally, the successful implementation of an omnichannel lease decisioning and customer acquisition program has significantly contributed to their e-commerce revenue growth.
However, there may be some challenges and controversies associated with the lease-to-own and retail purchase solutions market. One potential challenge is the increasing competition from other players in the market. The Aaron’s Company will need to continue innovating and differentiating themselves to maintain their growth trajectory.
For more information about The Aaron’s Company’s financial results and outlook, you can visit their investor website at investor.aarons.com.