Weather impacts Aaron’s earnings, revenues in Q1

Atlanta – Severe weather had a negative impact on financial performance at Aaron’s Inc. during the first quarter of fiscal 2014. Compared to the same period a year earlier, Aaron’s net earnings declined 25% to $38.3 million from $51 million.



Revenues dropped 1% to $585.4 million compared to $593.0 million for the first quarter in 2013. Same-store sales shrank 2.1%.



"Same store revenue and customer growth in both company-operated and franchised stores declined in the quarter," said Ronald W. Allen, CEO of Aaron's. "Approximately 70% of company-operated stores have been identified as having operations adversely impacted by the severe weather events that occurred during the first three months of the year. This includes a significant number of store closings as well as elevated utility and maintenance expenses. We estimate the negative impact of the weather conditions on revenue during the quarter in the range of $5.5 million to $6.5 million and the diluted earnings per share impact between $.05 and $.06 per share."