ATLANTA (AP) — Aaron's is lowering its fiscal fourth-quarter and 2013 outlooks partly because of tough economic conditions facing its shoppers.
The retailer's stock fell more than 7 percent in morning trading Monday.
Aaron sells and leases furniture, consumer electronics, home appliances and accessories. Chairman and President Ronald Allen said in a statement that the company's low- to middle-income shoppers are still dealing with difficult economic conditions. Product shipments to franchisees were also less in the fourth quarter than the prior-year period, he added. Sales at company-run stores open at least a year slipped.
The company now foresees quarterly earnings of 27 cents to 31 cents per share on revenue of about $555 million. Its previous outlook was for earnings between 38 cents and 42 cents per share on revenue of $575 million.
The company's revenue forecasts exclude revenue of franchisees.
Analysts surveyed by FactSet expect fourth-quarter earnings of 40 cents per share on revenue of $575.2 million.
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