Aaron’s grew its net revenues in the first quarter but comps declined while earnings fell short of Wall Street estimates.
For the first quarter ended March 31, Aaron’s posted net earnings of $52.2 million, or 73 cents per diluted share, versus $53.3 million, or 74 cents per diluted share, in the year-prior period.
Adjusted net earnings, exempting one-time charges, were $58.3 million, or 81 cents per diluted share, versus $57.8 million, or 80 cents per diluted share, in the year-earlier period. Adjusted earnings per share missed a MarketBeat-published analyst average estimate of 96 cents.
Comparable revenues decreased 4.4% in the quarter year over year primarily due to a lower customer count. Net revenues were $954.8 million versus $844.6 million in the year-previous period. Operating profit was $70.1 million compared with $86.5 million in the fiscal 2017 period.
“We’re off to a good start for the year,” said John Robinson, Aaron’s CEO. “Revenue grew 13.1% in the first quarter and we continued to invest in new retail partnerships and other initiatives to drive long-term earnings growth. While profitability was lower for the quarter due to increased operating expenses, we are encouraged by the early results we are seeing from our strategic investments and believe we are on track to achieve our 2018 financial objectives for each of our businesses.”