Rent-A-Center Q2 earnings fall 58%

Plano, Texas – Net earnings at Rent-A-Center Inc. fell 58% year-over-year in the second quarter of fiscal 2014, to $17.5 million from $41.9 million. Costs related to pretax restructuring and the consolidation of 150 stores into core U.S. stores helped reduce total net earnings.

Total revenues were $773.2 million, an increase of 2% million from total revenues of $760.5 million for the same period in the prior year. Improved revenues in Rent-A-Center’s Acceptance Now and Mexico segments, partially offset by decreased revenues in its core U.S. segment, drove the increase. Same-store sales rose 0.6%.

Rent-A-Center said second quarter performance did not meet expectations, resulting in reduced guidance for third quarter and full fiscal year revenue and profit. The company is launching a new smartphone product with a no-contract airtime plan to help improve performance.

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