After Shutting Stores, Rent-A-Center Earnings Up

October 27, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on October 2008 After closing 315 stores over the past year, Plano, Texas-based Rent-A-Center announced Monday that net earnings increased 16.2 percent to $29.4 million during its third quarter.

Total revenues for Rent-A-Center, which has 3,045 company stores, decreased by about $900,000 to $708.8 million, but same-store sales increased 3.4 percent. Officials said earnings were negatively affected by Hurricanes Gustav and Ike.

“We met our guidance for same store sales, revenues and, when giving consideration for the impact of the hurricanes, diluted earnings per share,” said Mark Speese, chairman and CEO. “While we believe the economic environment creates opportunities for potential customers whose available credit is diminished or eliminated, it is creating challenges for our existing customers. Therefore, we believe the current severity of the financial crisis and its effect on the economy has resulted in a softening in our business, and as a result we have reduced our outlook for the fourth quarter,” he said adding that the company now expects full-year revenues to be slightly below 2007 levels.