Profit for rent-to-own giant Aaron’s, which has struggled with declining foot traffic and sluggish sales, fell 35 percent for the full-year 2014 and about 2.75 percent in the fourth quarter of last year.
The company on Friday reported net earnings of $78.2 million for 2014, compared to $120.7 million in 2013. Earnings per share for 2014 was $1.08, down from $1.58 the year before.
Net earnings for the fourth quarter of 2014 was $22.09 million compared to $22.67 million during the same period in 2013.
Same-store revenue fell 2.8 percent in the fourth quarter of 2014 compared to the same period a year ago. Fourth-quarter foot traffic declined 5 percent.
“Aaron’s traditional store-based business has not performed at a level that is satisfactory over the past few years,” CEO John Robinson said in a release. “I have a high sense of urgency about improving our top-line, correctly aligning our cost structure, and managing the business for cash efficiency.”
Annual revenue for the full-year of 2014, however, increased 22 percent to $2.72 billion compared to $2.24 billion last year.
Aaron’s said the $700 million acquisition last year of online lender Progressive Finance negatively impacted pre-tax earnings by $8.8 million and $29.8 million in the fourth quarter and full year.
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