Leading rent-to-own operator,
) announced that it has opened 32 new company-operated and
franchised stores in 17 different states of the U.S. and 2
Canadian provinces in the last 3 months. These store openings are
in sync with the company's aggressive growth trend.
The company's new stores are located as follows - Prescott,
Maricopa and Buckeye, Ariz.; Tulare and El Cajon, Calif.; Craig,
Colo.; Putnam, Conn.; Greenacres, Jacksonville and Yulee, Fla.;
Pratt, Kan.; Baton Rouge, La.; Aberdeen, Baltimore and
Reisterstown, Md.; New Albany, Miss.; Elizabeth City, N.C.;
Concord, N.H.; Taos, N.M.; Hamburg, Rochester, Bronx and
Brooklyn, N.Y.; Westerville, Barberton and Hillsboro, Ohio;
Seminole, Okla.; Yankton, S.D.; Rockdale and Plano, Texas; Grande
Prairie, Alberta; and Port Alberni, British Columbia.
Earlier, in Sep 2012, Aaron's opened its 2,000th store in Bronx,
New York, marking a strong fiscal 2012 for the company. During
fiscal 2012, the company expanded its store count by 6.6%,
besides reporting strongest ever financial results.
Aaron's adjusted earnings reached $2.04 per share in fiscal 2012,
which was 16.6% higher from the adjusted earnings of $1.75
reported in 2011. However, it missed the Zacks Consensus Estimate
of $2.07 per share. Total revenue increased 10% to $2,222.6
million from fiscal 2011.
Looking ahead, management remains encouraged by its store
expansion outlook for 2013 and resulting job opportunities. In
2013, management targets new store growth of about 4%-6% over
2012, with equal numbers of company-operated and franchised
stores and a small rise in number of HomeSmart stores. Going
forward, the company will remain focused on its strategy of
acquiring franchised stores or selling underperforming
Aaron's is a rent-to-own operator in the United States, and has a
low price provider strategy. The company is involved in rental
and specialty retailing of consumer electronics, residential and
office furniture, household appliances, and accessories.
Currently, Aaron's has a customer base of over 1.7 million
throughout the U.S. and Canada. The company offers its customers
low monthly payments on a lease-to-own option and no credit
checks on everyday brand name necessities such as refrigerators,
computers, beds and televisions.
Moreover, Aaron's leverages an extensive network of stores to
effectively penetrate into its target markets, which in turn
facilitates the company to generate healthy sales and gain a
competitive advantage over its rivals. The company currently
operates over 2,075 company-operated and franchised stores across
Canada and 48 states of the U.S.
The company's peer,
) also follows the strategy of expanding its store network to
boost its top line. For 2013, Rent-A-Center's management plans to
open approximately 60 rent-to-own locations in Mexico.
Furthermore, the company aims at about 425 domestic RAC
Acceptance kiosk additions.
Despite these encouraging expansion prospects, currently, shares
of Aaron's hold a Zacks Rank #3 (Hold).
However, until any further upward revision in Aaron's rating,
other stocks in the finance-leasing universe worth considering
CorEnergy Infrastructure Trust
Electro Rent Corporation
), which hold a Zacks Rank #2 (Buy) and a Zacks Rank #3 (Hold),
AARONS INC (AAN): Free Stock Analysis Report
CORENERGY INFRA (CORR): ETF Research Reports
ELECTRO-RENT (ELRC): Get Free Report
RENT-A-CENTER (RCII): Free Stock Analysis
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