A Day After Rent-A-Center Registers Strong Third Quarter, Aaron Rents Announces Third-Quarter Net Earnings up 32%; Sales Rise 16%

October 28, 2008  by in UnCategorized   

By Home Furnishings Business in Bedding on October 2008 Atlanta-based Aaron Rents, which operates a network of nearly 1,500 furniture and electronics locations, announced Tuesday that revenues increased 16 percent to $388 million in its third quarter, and net earnings rose 32 percent to $21.1 million.

Same-store sales increased 5.7 percent during the third quarter in company-owned stores. Aaron’s portfolio includes 983 company stores, 502 franchises and 38 RIMCO wheel rental stores, eight of which are franchised. Its Corporate Furnishings Unit, which is being sold, has 47 locations, and there are also 13 Aaron’s Office stores.

“We are very pleased with the third-quarter results from both our company- operated and franchised stores,” said Robert C. Loudermilk, Jr., president and CEO. “Even though economic times are tough and our stores in the Southern and Central United States were affected in September by business disruption and property damage as a result of Hurricanes Gustav and Ike, we still managed to have an outstanding quarter as customers continue to come into our stores seeking basic home furnishings,” he said, adding that more than 100 stores were impacted by hurricanes. “We feel we are in an outstanding position to continue the growth of our business during the remainder of 2008 and on into 2009.”

As previously announced, the company is selling its Corporate Furnishings Division to CORT Furniture. Aaron Rents expects to receive approximately $72 million when the deal closes in November.

Company officials said the company expects to add about 17 stores by the end of the year and continue to grow its store base by 10 percent to 12 percent over the next several years.