Expenses reduce Aaron’s net income; plans 142 new stores over next several years

Atlanta –- Aaron’s Inc.reported that its third quarter income fell 55% to $9.3 million, from $21.1 million the same quarter the prior year, amid expenses related to store closings, corporate realignment, executive retirements, the resolution of a regulatory investigation and the purchase of Progressive Finance Holdings.



Revenues increased 32% to $707.6 million compared to $537.2 million, aided by the addition of Progressive revenue.



Aaron’s plans to open 142 stores during the next several years. In addition, the retailer expects that approximately $50 million in annual cost savings will be achieved by the end of 2015. Among other actions, during the third quarter Aaron’s closed 44 underperforming stores and restructured its home office and field support to more closely align with current business conditions.



"We are making significant progress on the strategic initiatives outlined earlier this year to strengthen our core business," said Gilbert L. Danielson, interim CEO and CFO of Aaron's. "Improving the customer's experience is a priority and through meeting their needs in all areas of our operations, including e-commerce and the personal relationship at Aaron's stores, we believe our overall customer reach will expand."