Atlanta – Aaron’s Inc. on Tuesday said it plans to close 44 underperforming stores in the third quarter of fiscal 2014 and continue other cost-reduction initiatives in response to disappointing core business performance. The electronics, furniture and appliances rentals retailer also revised its earnings guidance downward for the second quarter.
The company praised the performance of its recently purchased Progressive Finance unit.
“With that said, we are disappointed with our core business results and are taking aggressive action to respond to the challenging economic environment and the evolving industry in which we operate,” said Ronald W. Allen, CEO, Aaron’s. “We recently undertook a comprehensive and detailed review of opportunities for shareholder value creation and continue to believe that by implementing targeted strategies, we can grow the core business.”
Aaron’s currently has more than 2,130 company-operated and franchised stores in 48 states and Canada.
Aaron’s said it is focusing on five key areas to position the company for long-term growth and profitability. These include same-store revenue growth, the online platform, cost efficiency to recapture margin, targeted new store growth, and the franchisee network.