Aaron's Co. Stock Declines

Shares of Aaron's Co. took a hit as smaller purchases affected the company's financial results. The stock plummeted 27% to $7.64 in after-hours trading, following a 0.8% decrease at the end of Monday. Despite a 16% increase in shares over the last three months, the Atlanta-based lease-to-own retailer faced challenges in sales.

Sales Decline and Widened Loss

In the fourth quarter, Aaron's Co. reported a decrease in sales due to lower average ticket sizes impacting its namesake business. Additionally, BrandsMart experienced a 14% decrease in comparable sales. The company's loss per share widened from 19 cents to 41 cents year-over-year, surpassing analysts' expectations of a 3 cent loss.

Future Revenue Projections

Despite the setbacks, Aaron's Co. is anticipating revenue between $2.06 billion to $2.16 billion in 2024, reflecting a potential 3.7% decline to less than 1% increase. However, analysts forecasted higher sales of $2.2 billion for the same period.

Adjusted Profit Expectations

Excluding certain one-time items, the company forecasts a loss of 10 cents to a profit of 25 cents per share for the year. In contrast, analysts project an adjusted profit of $1.09 per share.

Aaron's Co. faces a challenging road ahead as it navigates through sales declines and adjusted profit margins, presenting a tough road to recovery.