However, Aaron's has been reeling under dismal margins, lower lease revenues and reduced lease portfolio size. This accounted for more than 27% of lease and retail revenues, up from 15% in the first quarter of 2022. Notably, the company had 222 GenNext locations at the end of the first quarter. It announced the opening of its first BrandsMart store in 2023.Ī sturdy performance in GenNext stores bodes well.
The company has been optimistic about its performance in the near future. Notably, revenues were $144.2 million in the first quarter of 2023, driven by strength in small appliances and housewares, and e-commerce strength. The deal is also likely to generate significant cost synergies and aid Aaron’s top line.
Its express delivery program also bodes well.Īaron’s latest acquisition of appliance and electronics retailer, BrandsMart, is expected to strengthen AAN’s market position and help expand the customer base. Some other notable efforts include increased investments in digital marketing, improved shopping experience, same-day and next-day delivery services, the personalization of products, and a broader assortment, including the latest product categories. The uptick can be attributable to increased website traffic and a higher conversion rate. In first-quarter 2023, e-commerce lease revenues were up 12.3%, accounting for 17.9% of the total revenues. The company has continued to witness strength in its e-commerce platform. Consolidated revenues grew 21.5% to $554.4 million, driven by gains from the BrandsMart buyout, somewhat offset by weak lease revenues and fees, and drab retail sales at the Aaron's Business. This led to impressive first-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Also, cost-reduction initiatives, a solid online show and strength in the GenNext program bode well. Aaron’s AAN has been gaining from reduced write-offs and fewer customers opting for early purchase options.
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