Aaron Rents Raises 2009 Earnings Guidance

December 21, 2008  by in UnCategorized   

By Home Furnishings Business in economic news on December 22, 2008 Aaron Rents, Atlanta, has raised its earnings guidance for 2009 after watching fourth-quarter sales rise at its more than 1,535 company-owned and franchised stores selling and renting furniture, electronics, appliances and accessories in the United States and Canada.

"Aaron's Sales & Lease Ownership results continue to be strong with growing same-store revenues and customer counts," said Robert C. Loudermilk, Jr., president and CEO of Aaron Rents. "Unlike many other specialty retailers, our business has been thriving in this economic environment. We give customers the ability to obtain necessary home furnishings through non-credit-based lease plans not available to them at traditional retail outlets."

"We expect same-store revenues for the fourth quarter to increase 5 percent to 7 percent compared to the fourth quarter of 2007," Loudermilk continued. "Our earnings guidance for the fourth quarter and fiscal year 2008 is unchanged, with diluted earnings per share for the year expected to be in the range of $1.60 to $1.65, excluding gains from fourth quarter store sales and any gain or loss on the previous announced sale of the Aaron's Corporate Furnishings division."

As previously announced, during the fourth quarter the company acquired Rosey Rentals LP, its second-largest franchisee with 35 stores in six states; and has purchased the accounts of 18 stores from several competitors, as well as buying one store and selling 11 stores to other operators. Aaron Rents also has merged 20 of its RIMCO stores into existing Aaron's Sales & Lease Ownership stores and is reevaluating the "wheels and rims" concept.

Aaron Rents expeccts to have approximately 1,045 company-operated stores and 500 franchised stores open by the end of 2008.

"We are altering our 2009 square footage growth plans somewhat, and expect to increase overall store growth next year approximately 5 percent to 9 percent over the store base at the end of 2008," Loudermilk said.