October 30, 2012

Aaron’s revenues increase in third quarter

US-based specialty retailer Aaron's has posted a 9% increase in revenues to $529.5m in the third quarter ended 30 September, compared to $484.7m in the same quarter last year.

By Prasanth Katam

US-based specialty retailer Aaron’s has posted a 9% increase in revenues to $529.5m in the third quarter ended 30 September, compared to $484.7m in the same quarter last year.

Same store revenues, earned in company-operated stores open for the entirety of both periods, rose 6.5% during the third quarter of 2012.

Same store revenues also grew by 4.8% for company-operated stores open for over two years at the end of 2011.

During the third quarter, net earnings totaled $28,941, while retail sales amounted to $7,912, compared to $8, 298 in the same period a year ago.

Revenues for the first nine months of the year climbed 10% to $1.654bn, compared to $1.500bn for the same period of 2011.

The company’s retail sales were $30,119, down compared to $30,491 in 2011 operating profit rose 62.2% to 221,844, compared to 136,727 in the corresponding a year ago.

Aaron’s net earnings rise 63.8% to $136,411, compared to $83,233 in the same period a year ago.

The company said revenues of the HomeSmart stores grew to $14.2m in the third quarter of 2011.

HomeSmart revenues for the first nine months of 2012 were $40.4m, compared to $6.7m for the same period a year ago.

During the third quarter of 2012, the retailer opened 14 company-operated Aaron’s Sales & Lease Ownership stores and 13 franchised stores.

Aaron’s also acquired four franchised stores and the accounts of three third party stores which were added to Aaron’s Sales & Lease Ownership stores.

As of 30 September 2012, Aaron’s had 1,190 company-operated Aaron’s Sales & Lease Ownership stores, 717 Aaron’s Sales & Lease Ownership franchised stores, 78 HomeSmart stores, one franchised HomeSmart store, 17 company-operated RIMCO stores, and six franchised RIMCO stores.