Q3 2024 PROG Holdings Inc Earnings Call Transcript
Key Points
- PROG Holdings Inc (PRG) delivered a strong third quarter, surpassing expectations for GMV growth and reaching the high end of revenue and earnings outlook.
- The company achieved a consolidated revenue of $606.1 million, representing a 4% growth compared to Q3 2023.
- PROG Holdings Inc (PRG) signed a long-term exclusive partnership with American Signature Inc, enhancing its market positioning.
- The PROG Marketplace platform experienced over 300% growth year-to-date, exceeding its 2024 GMV target.
- The company maintained a healthy portfolio with write-offs consistent with pre-pandemic levels, supported by dynamic decisioning models.
- The company faces challenges from the Big Lots bankruptcy, which is expected to impact Q4 GMV by 100 to 150 basis points.
- There is a slight increase in delinquencies within the portfolio, reflecting broader consumer stress.
- The gross margin decreased by 110 basis points year-over-year due to higher 90-day early purchases and new customer growth.
- The furniture and mattress categories remain weak, with no expected inflection in demand for 2025.
- The company anticipates a challenging Q4 gross margin comparison due to below-average 90-day purchases in the previous year.
Good day. And thank you for standing by. Welcome to PROG Holdings third quarter earnings conference call. (Operator Instructions)
Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, John Baugh. Please go ahead.
Thank you and good morning, everyone. Welcome to the PROG Holdings third quarter, 2024 earnings call. Joining me this morning are Steve Michaels, PROG Holdings President and Chief Executive Officer; and Brian Garner, our Chief Financial Officer.
Many of you have already seen a copy of our earnings release issued this morning, which is available on our Investor Relations website, investor.progholdings.com.
During this call, certain statements we make will be forward-looking, including comments regarding our revised 2024 full year outlook and our outlook for the fourth quarter of 2024. The health of our portfolio and our expectations for write offs for our progressive leasing segment for the full year
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