Restructuring, impairment dampen Rent-A-Center Q3 earnings

Plano, Texas -- Pretax restructuring charges related to corporate reorganization and store closures, as well as pretax impairment charges, helped reduce net earnings at Rent-A-Center Inc. 7% to $25.3 million in the third quarter of fiscal 2014 from $27.2 million in the third quarter of the prior year. Revenues grew 2% to $769.5 million from $754.8 million, and same-store sales rose 1.9%.

Revenue growth was driven by the Acceptance Now and Mexico segments, partially offset by falling sales in the core U.S. segment. However, the rollout of smart phones in July helped produce positive same-store sales in core U.S. stores.

“These results confirm our urgency to execute on the transformation we outlined in February, with a focus on operational and infrastructure initiatives such as introducing a new labor model for our Core U.S. stores, developing a new supply chain, formulating a customer-focused value-based pricing strategy and implementing new technology into our Acceptance Now locations,” said Robert D. Davis, CEO of Rent-A-Center.