Rent-to-own company Aaron's added more customers and increased its sales, but took a $36.5 million hit from a lawsuit it intends to appeal.
The Atlanta company updated its earnings expectations for the year, as its sales increased 8 percent, to $482.7 million for the second quarter. It had a 9.2 percent increase in customers at combined company and franchise-owned stores.
Aaron's now expects to earn between $1.73 and $1.81 a share in 2011, though its revenue expectations remain unchanged. At the end of the company's first quarter, it also raised earnings per share expectations from the original estimate of $1.61 to $1.77. Aaron's president and CEO Robert C. Loudermilk, Jr. said in a Thursday call that the company is "recession resilient."
The company's diluted earnings per share for the second quarter were 13 cents, but would have been 41 cents if not for a June decision by an Illinois jury in what attorneys have said may be the largest sexual harassment award in the country. Aaron's said it will appeal the decision, and the $36.5 million figure is a worst-case scenario.
Aaron's intends to expand its weekly rent-to-own model, Homesmart, which should have 60 stores by the end of the year.
Aaron's competitor Rent-A-Center on Monday reported revenues of $698.3 million for the second quarter; its same-store sales decreased .3 percent for the quarter. Same-store sales for Aaron's were up 3.2 percent for stores that as of June 30 had been open at least two years.
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