Last April, Atlanta-based Aaron’s announced it had purchased online processor Progressive Finance for $700 million.
Twelve months later, the investment is proving to be a shrewd move.
Progressive’s revenue of $251.6 million helped Aaron’s, which has been struggling with slumping sales and declining foot traffic in its core rent-to-own business, post a more than 28 percent jump in revenue in the first quarter of 2015.
Aaron’s overall profit was $49.2 million in the quarter, up from $38.3 million in the same period in 2014, the company said Friday. Same-store foot traffic at company locations fell 4.2 percent in the quarter compared to the same time last year, but was an improvement over previous quarters.
That’s important because Aaron’s is trying to find breathing room as its works to reinvigorate sales of TVs, living sets and computers at its stores. The company’s growth strategy includes launching later this year rent-to-own phones from T-Mobile, beefing up its website to lure customers who prefer mobile shopping and cutting costs in stores and at its corporate offices.
The company has been squeezed as many of its customers have not felt the economic recovery.
Progressive’s earnings from the same period last year were not included because Aaron’s had just purchased the company. Progressive provides online lease-purchases for Aaron’s and other companies, such as Big Lots, Sleepy’s and Mattress Firm.
“Profitability in the core business stabilized in the quarter, and we believe our strategies can ultimately restore growth in this segment,” said CEO John Robinson.
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