Q1 2024 Aaron's Company Inc Earnings Call Transcript
Key Points
- The Aarons Co Inc (AAN) reported that their performance for the first quarter was in line with guidance, showing positive momentum.
- E-commerce growth was significant, with over 115% increase, contributing positively to the company's performance.
- The Aarons Co Inc (AAN) experienced the smallest decrease in lease portfolio size for the first quarter in a decade, indicating improved stability.
- The company's new omnichannel lease decisioning and customer acquisition program has significantly increased conversion rates of lease applications.
- The Aarons Co Inc (AAN) has raised its outlook for non-GAAP diluted EPS for the full year 2024 due to a lower estimated tax rate.
- Despite exceeding top and bottom line expectations, comparable sales remained negative, indicating ongoing demand pressure.
- BrandSmart's profitability remains challenging, with the segment experiencing weaker customer traffic and a trend of customers trading down to lower-priced products.
- The lease renewal rate for the quarter was down approximately 110 basis points year over year, due to the increasing mix of e-commerce agreements.
- Write-offs as a percentage of lease revenues were up 50 basis points versus the prior year quarter, indicating increased credit risk.
- Consolidated revenues for the first quarter of 2024 decreased year-over-year, primarily due to lower lease revenues and fees at the Aaron's business and lower retail sales at BrandSmart.
Good morning, everyone, and welcome to the Aaron's Company Q1 2024 earnings call. My name is Angela, and I'll be coordinating your call today. (Operator Instructions)
I will now hand you over to your host, Marc Levee, Vice President, Finance and Investor Relations. Please go ahead.
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Thank you, and good morning, everyone, and welcome to our first quarter 2024 earnings conference call. Joining me today are our Chief Executive Officer, Douglas Lindsay, President, Steve Wilson, and Chief Financial Officer, Kelly Wall. After our prepared remarks, we will open the call for questions.
Yesterday after the market closed. We posted our earnings release on the Investor Relations section of our website at investor dot aarons.com. We also posted a slide presentation that provides additional information about our first quarter 2024 results.
During today's call, certain statements we make may be forward looking, including those
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