Aaron’s Inc., the Atlanta-based rent-to-own retailer, said second quarter profit fell 12 percent despite a 7 percent increase in revenue.
Aaron's posted a profit from continuing operations of $24.4 million, or 30 cents a share, vs. $27.8 million, or 34 cents a share a year earlier.
Sales were $445 million in the quarter, up from $417.3 million a year ago.
Aaron’s said it incurred a charge of $7.1 million, or 5 cents a share, related to the closing of eight of its 12 office furniture stores. The rest will be closed by Sept. 30.
“The results for the quarter were in line with our current guidance, and closing the office furniture stores is a positive going forward, as we will now be able to concentrate all our efforts on our proven and growing Aaron’s Sales & Lease Ownership business,” Robin Loudermilk, president and CEO, said in a statement.
“Although revenue growth has slowed somewhat in recent months, our sales and lease ownership business continues to grow in revenues and numbers of customers, and our plans to open additional stores are unchanged.”
The company, which had 1,732 stores open at the end of June, plans to grow its store count by 5 to 9 percent this year.
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