Aaron's Q1 FY20 revenue grows 8.8% to $1.10 bn

08 May '20

2 min read

Pic: Aaron's

Aaron's, a US based lease-to-own retailer, has reported 8.8 per cent revenue growth to $1.10 billion in the first quarter (Q1) FY20 ended on March 31, 2020 compared to revenue of $1.01 billion in same period prior year. However, net losses for the first quarter were $280 million compared to net earnings of $56.1 million in the prior year period.

“I am pleased with our first quarter results as we were performing ahead of expectations leading into the pandemic. Our conservatively capitalised balance sheet and strong year-to-date operating cash flow positioned us to better absorb the shock of the crisis,” John Robinson, chief executive officer of Aaron’s said in a press release.

Revenues for the Aaron's Business decreased 9.8 per cent to $432.8 million (Q1 FY19: $480.1 million). The decrease was reportedly due to the net reduction of 183 stores during the 15-month period ended March 30, 2020.

Retail sales fell from $12.8 million in Q1 FY19 to $9.53 million in the reported quarter. Non-retail sales were $26.8 million (Q1 FY19: $36.9 million).

“While there remains tremendous uncertainty related to Covid-19 and its economic impacts, we are encouraged by the strength of customer payments in April and the improving trajectory of our lease origination activity over the last few weeks,” Robinson said.

The phased reopening of Aaron's Business showrooms beginning in late April, aided by the e-commerce channel, which increased more than 50 per cent in the month, contributed to the rebound in lease originations.”

At March 31, 2020, the Aaron's Business had 1,129 company-operated stores and 318 franchised stores.

Fibre2Fashion News Desk (JL)

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