Lease-to-own retailer The Aaron’s Company released its second quarter report at the start of the week, offering a bleak 2022 guidance. The company’s stock took a big hit shortly after, diving 25% at one point.
Aaron’s adjusted its predictions for 2022 sales and now sees them in the range of $2.19 billion to $2.27 billion compared to previous estimates of $2.32 billion to $2.39 billion. At the same time, the retailer doesn’t expect earnings per share to be $2.65 to $2.90 but much more disappointing $1.75 to $2.15. Other highlights were reported $0.17 losses per share, net losses of $5.3 million, and non-GAAP earnings per share of $0.79.
In a follow-up statement, Aaron’s CEO Douglas Lindsay said these numbers are a reflection of the impact that the high inflation had on “the lower-income customers.”
“In Aaron’s Business, customer demand and payment activity progressively worsened through the quarter as high inflation impacted the lower-income consumer,” Lindsay said.
The Aaron’s Company shares climbed all the way to $16.57 last week, marking their highest price since mid-June. However, its stock fell to a 52-week low after the adjusted full-year outlook and went as low as $12.50 at one point. It saw a slight recovery later on Tuesday, trading at $13.34 per share.
