Profit for Atlanta-based rent-to-own giant Aaron’s jumped strongly in the second quarter on the health of its Progressive Finance division while its core business continued to struggle.
The company said Friday that net income rose from $8.5 million in the second quarter of 2014 to $40.5 million during the same period this year. Earnings per share were 56 cents compared with 12 cents for the same quarter last year.
Progressive Finance, which Aaron’s bought in April 2014, boosted Aaron’s performance with revenue of $255.9 million in the second quarter of 2015 and $507.6 million for the first six months of this year.
But revenue for its core lease-to-own business fell 3.9 percent in the second quarter and foot traffic at company-operated stores dropped 3.7 percent.
“Our core business achieved an increase in profit margin due to improved expense and inventory control,” Aaron’s CEO John Robinson said in a statement. “We’re disappointed that core revenues were not stronger in the quarter but remain optimistic that recent initiatives will drive better year-over-year comps in the future.”
“Progressive delivered an outstanding quarter with strong revenues and improved operating margins,” Robinson said.
Overall revenue ticked up more than 16 percent to $769 million compared with $662.5 million in the second quarter of 2014.
