Aaron’s 2014 profit down 35% in 2014

Atlanta -- Rent-to-own retailer Aaron’s saw its profit drop 35% in 2014 amid declining traffic and weak sales. The company, which operates some 2,100 stores, was also impacted by hurt by various charges related to restructuring and the acquisition of Progressive Leasing.



Aaron’s reported net earnings of $78.2 million for 2014, compared to $120.7 million in 2013.



Net earnings for fourth quarter 2014 was $22.09 million, compared to $22.67 million during the same period in 2013. Same-store sales declined 2.8% in the quarter of 2014.



“Aaron’s traditional store-based business has not performed at a level that is satisfactory over the past few years,” stated CEO John Robinson. “I have a high sense of urgency about improving our top-line, correctly aligning our cost structure, and managing the business for cash efficiency. While a number of initiatives are underway, including the realization of $50 million in annual cost savings, I am keenly focused on addressing each of these issues and will consider all options to improve our store-based operations."”



In positive news, Aaron’s annual revenue for the full-year of 2014 rose 22% to $2.72 billion.



Aaron’s said the $700 million acquisition last year of online lender Progressive Finance negatively impacted pre-tax earnings by $8.8 million and $29.8 million in the fourth quarter and full year.