The Aaron’s Co. posted a net loss for the fourth quarter that fell far short of Wall Street estimates as revenue came up slightly short, as well.
Net loss was $12.4 million, or 41 cents per diluted share, verses a net loss of $5.9 million, or 19 cents per diluted share, in the year-before quarter. Adjusted for one-time events, net loss was $7.8 million, or 26 cents per diluted share, versus net earnings of $2.8 million, or nine cents per diluted share, in the year-previous period.
Aaron’s fell short of a MarketBeat-published analyst consensus estimate of three cents per adjusted diluted sales in earnings and $542.1 million in revenue.
Revenues were $529.5 million versus $589.6 million in the year-prior quarter. Operating loss was $7.9 million versus $6.2 million in the year-earlier period.
Full year, net earnings were $2.8 million, or nine cents per diluted share, versus a net loss of $5.3 million, or 17 cents per diluted share, in the year before. Adjusted earnings were $25.1 million, or 81 cents per diluted share, versus $64.8 million, or $2.07 per diluted share, in the year previous.
Revenues were $2.14 billion versus $2.25 billion in the year prior. Operating profit was $12.6 million versus an operating loss of $2.5 million in the year earlier.
Douglas Lindsay, Aaron’s CEO said, “In response to ongoing pressure in our key product categories at Aaron’s and BrandsMart during 2023, we took strong actions to drive demand and reduce costs. In Q4, we launched a new omnichannel lease decisioning and customer acquisition program, which led to robust e-commerce growth that has continued into 2024. Also, I’m pleased that we exceeded our cost savings target in 2023, and we remain focused on driving further efficiencies. While the lower lease portfolio size to start the year will impact adjusted earnings in 2024, we expect our actions will generate lease portfolio growth. Given the investments we’ve made to innovate our business and the strength of our balance sheet, we are better positioned than ever to drive long-term profitable growth. Our management team and board are highly engaged and committed to taking actions that will deliver additional value for our shareholders.”
