ATLANTA-Based on a weaker-than-expected performance, Aaron’s said it is reducing its guidance for third-quarter sales from its previous projection of $550 million to $540 million.
Ronald Allen, Aaron’s president and CEO, said the third-quarter numbers for revenue and customer growth did not meet the retailer’s projections. “Our customers continue to struggle in the current economic environment, and although traffic remains good in most stores, we are having challenges gaining customers,” Allen said.
He added that same-store revenue and customer growth were “basically flat” in the quarter. Shipments of products to the company’s franchised stores were less than the third quarter of last year as well.
“We initiated several new promotions in the latter half of the third quarter and have additional broader product promotions scheduled for the fourth quarter and beyond, and believe these and similar incentives, along with better execution at the store level, will help return us to more historical revenue and customer growth,” Allen said.