RCII: Rent-A-Center to Close 150 Stores in U.S.

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Shares of Rent-A-Center (RCII) jumped more than 13% in Tuesday morning trading after the company posted a better-than-expected quarterly profit and said it would shutter 150 stores across the U.S.

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During the first-quarter, RCII reported earnings of $28.9 million, down from $46.1 million in the year-ago period. Adjusted EPS came in at 57 cents, topping the 55 cents that analysts had forecast, the Wall Street Journal noted.

Despite a 5.6% decline in revenue at its core U.S. operations, RCII said total revenue rose almost 2% compared to the year-ago quarter, hitting $833.7 million. That fell short of the $840.3 million that Wall Street had been looking for. RCII revenue gains were driven by higher sales at its Mexican operations and Acceptance Now unit.

RCII did not specify which of its 3,170 stores were slated to close. RCII anticipates a $4 million charge linked to the store closings during the current quarter.

Additionally, RCII trimmed its revenue growth forecast for the rest of the year. RCII now expects revenue to rise between 3% and 6% this year. That’s down from earlier guidance that predicted revenue growth of between 4.5% and 7%.

RCII stock closed at $25.77 per share on Monday.

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Article printed from InvestorPlace Media, https://investorplace.com/2014/04/rcii-rent-center-close-150-stores-u-s/.

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