Earnings call transcript Q4 2022

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Operator

Welcome to The Aaron's Company Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Thank you. I’d like to hand the conference call over to Keith Hancock, Senior Director of Corporate Affairs, for The Aaron's Company. Mr. Hancock, you may proceed.

Keith Hancock

you. Thank everyone. morning, good And Keith Hancock, Aaron's Affairs The of Senior Director Company. Corporate at I’m our full Welcome conference quarter fourth to and call. year earnings XXXX

President, Joining Officer, Financial Aaron's are Kelly Steve Lindsay; Officer, me Chief Olsen Chief Wall. and today Douglas Executive

the of remarks the Yesterday investor.aarons.com. our we our website open closed, the on for earnings questions. at After our release will Investor call prepared posted we after market Relations section

provides our additional full We year information the also presentation posted an and results, a fourth multiyear and year outlook that XXXX our strategic full slide XXXX quarter on about update plan.

call, we year. certain During be today's this to statements forward-looking related including those for may outlook our make

information, The statements. ended that cause actual refer content description from forward-looking the risk identifies found looking more our forward-looking actual at may important for forward Also, a to XX-K Safe Safe these of our risks of that XXXX, can about Form statements, to earnings differ to results with the cause from Harbor be For end SEC statements. our please materially filings business the provision release. cautionary Harbor including results our XX, notes of other related the provision December differ to the the read year may the please materially for and that

in release a posted website. with detailed the non-GAAP are flow, presentation may adjusted affect cash in today's earnings on other non- free GAAP release, in our the and non-GAAP included non-GAAP has we and and companies. tables which comparability the including These for call, certain adjusted investor EBITDA EBITDA, our and financial net performance items of On supplemental refer been to measures, reconciliation certain measures EPS adjusted earnings, which our

now will turn to I Lindsay. that, the CEO, over Douglas our call With

Douglas Lindsay

company. expectations were line for delivered full internal we everyone. and and consolidated for Thank fourth us that we quarter report pleased within for in with adjusted your XXXX XX. for interest on morning, today in The provided the the Good the outlook our Company and joining for year results were and Company earnings, I'm consolidated you results both that both Aaron's October to Keith. revenue segment Thanks, revised that

and increase fourth inflation customers customer BrandsMart. our Despite We in to customer market saw share. challenging continue and during pressures, well impact a executed season to Aaron's of designed high marketing our economic our generating have in While at and conditions teams through great job merchandising quarter. other demand done the holiday the both macroeconomic demand improvement strategies

Aaron's and both remains top profitability in platforms. benefit decisioning and business lease priority Our In servicing to digital businesses. from optimizing payment investments the we ongoing continue and

resulted to XXXX write-offs. For decisioning example, lease lease enhancements our in model made in quarter-over-quarter improvements merchandise to earlier

as initiated begin into to We forward expect leases to our the those model a benefits Titan XXXX greater reflect portfolio. percentage of carry under total

April the focused our optimization market confident with BrandsMart. our our We and quarter, program. remain on are million growing execution capturing At from estate the benefiting we on made in at At acquisition. and we Aaron's, remain executing of XXXX. in strategic synergies repositioning on progress reduction potential announced $XX to our our we the business enhancing of in to cost announced million real cost growth are In and e-commerce also about Aaron's approximately $XX optimistic and we BrandsMart, savings initiatives and both we also in expect execution and generate growth initiatives QX last

continue customers do to in In half categories trade high expect outlook customers appliances, inflation our As And customer they macroeconomic continued will we both of the assumes experienced product year XXXX furniture, that lower ahead when into core we and XXXX, in in softness factors and across other pressure of electronics. spectrum. to will continue the demand look down we our price our products. to first credit expect businesses, the for shop,

these reflects outlook And lease X% challenging XXXX. half well higher lower fact portfolio that to the at as first trends, beginning demand size the Our our payouts as of of customer year. in lease the was agreement the

Our improved outlook reductions. also demand reflects as will as second payment and our half of year activity ongoing the expectations cost benefit well the from customer as

our designed and the through decisioning strengthen XXXX enhancements is update an As to Aaron's strategic designed our and business, reduce and e-commerce, which to to platforms, costs we and provide margins. initiatives look excited updated strategic our transforming increase first three all grow to plan The pillars servicing plan, marketing our lease of include multiyear investments and market to share. optimization, beyond, our to market operating revenue, I'm

enhancing functions. opening cost growing optimizing through our BrandsMart E-commerce. achieving transaction Second, third, and support synergies, physical stores, investing And structure our new in and through infrastructure rationalizing our and

to our lease-to-own XXXX be customer term retail expect reset in in a demand both we and owned While believe strength of the year, businesses. we long

our ongoing our that investments and confident will distinct strategic growth enable are allow increase This to competitive and our and share us meaningful shareholder returns. to continue us Aaron’s term both market long and to advantages enhance will We BrandsMart. deliver

now will turn Olsen. I call the Steve to over

Steve Olsen

Aaron's start you, Thank I of the business. a fourth Douglas. will quarter recap The with for

promotional our for budgets, pressures executed shopping teams continue In the household Aaron’s inflationary channels. and merchandising their and across continue they While quarter, our customers to Aaron’s impacting our e-commerce and store strong developed strategies to their face needs.

a Friday quarter, channel to recurring and e-commerce our revenue steadily drove throughout in December. Aaron's.com. promotions season strong in the written Monday in Black Merchandise the our Cyber end channels we highest launched deliveries all holiday since the example, including For improved

internal a renewal Our year-over-year. stores, Aaron’s points company in was XXX at down is our future basis driver rate XX.X% operated which expectations portfolio line with for Lease size came for lease revenue. our key

than size business. lower the portfolio in X.X% lease our quarter. our fourth prior $XXX.X portfolio expectations the the the year fourth for to of growth Aaron's stores our Although important at quarter million, ahead company enters strategies operated Shifting enter internal lease quarter our size our

with year increased of prior the E-commerce revenues our the of increasingly pleased portfolio higher E-commerce revenues. the of originations growth our lease year while X,XXX revenues revenue e-commerce aaron’s.com, continues an the X.X% quarter. ended XX.X% from the total represented quarter, in represent percentage Recurring year versus The the fourth are year-over-year. our to over ongoing of with XXX% for quarter. In business channel. We to written XX.X% an increased lease year prior e-commerce into products XX.X% on up the We compared prior quarter, increase

repositioning pleased program. optimization We be with continue and our in to market our estate Aaron’s real investments

other XXX a to GenNext to doors, store one we market nearby model. the service optimization to our account and of We program continue lease and open stores, than GenNext to include to XX revenues, full stores legacy XX% market more In we As year. XXXX. our XXXX for more less program, into up showrooms. rate part our ended stores designate hub at and have new at in up to stores. that enabled of a with plan model, now additional within us origination continue GenNext grow new locations XX.X% operate average larger a lease expand convert than than retail last percentage hub the year to than of we to invest stores GenNext from XX points one open These and in this which showroom higher The

while from sales hub. of plan servicing and on activities, Our created XXXX, showrooms XX receiving In or the showrooms, to XXXX. product hubs approximately XXX we showrooms delivery we additional convert support and pairs focused open in

this existing while will improving model our us customers, allows real costs our continue to market estate leading providing new model working and long us to reducing to and services new more This we in the open costs. locations believe efficiently In markets. term, capital reduce allow

up as prior softer value, average traffic were sales XX.X% compared and turning weaker to Now as QX, result quarter, transaction the XXXX. our year for X% as the BrandsMart, to of product compared fourth quarter down but to

pricing XX expense year face our of sales and we these the the Despite gross product strategic savings, improve promotion actions we end Through the prior challenges approximately basis of margin points Although, Friday through Black quarter, sales December. during quarter, the lower quarter. by improve in procurement product for management. at profitability through product optimized the team our and actions, beginning

strategic long term remains growth our a to opportunity. e-commerce Turning for BrandsMart, initiatives

We our strategies improve online experience. and user the marketing continue digital to enhance

the product sales, with and our overall website product year. were pleased e-commerce redesign are of in We launched X.X% performance our with as the down Consistent the sales prior quarter. to compared

in the e-commerce sales. However, quarter, of grew XX.X% to total product sales

initiatives acquisition. synergy We make progress the BrandsMart our in related and executing continue to also integration to

are that energies. procurements internal XXXX of We our pleased ended expectations well for ahead we

progress we are XXX addition, with In over we And BrandsMart in from our to BrandsMart aaron's.com. items making lease-to-own solution offered added stores.

QX. We customer and that forward this XXXX, open a into ahead to our new to have first into BrandsMart look in are we value As excited store markets. new look brand compelling we proposition we expanding we believe

to over Kelly performance. details things on turn to provide our I'll Now, further financial

Kelly Wall

Steve. you, Thank

Let's down Unless adjusted business a to EBITDA start acquisition million, EBITDA were XXXX primarily fourth prior million, $XX.X the BrandsMart be decline revenues was with BrandsMart. Aaron's by with to adjusted in my the basis. with the $XXX.X comparisons million, on to quarter otherwise, year-over-year of stated the will up periods $XXX.X for fourth quarter. Consolidated compared million compared and of offset $XX.X for Aaron's primarily on the lower at business. revenues contribution due offset Consolidated a the due

basis, EBITDA lower $X.X to was diluted to $X.XX. X.X%. was provided business per flow X.X% share driven by compared of non-GAAP by were million, the or a higher percentage inventory adjusted As operations, Adjusted with demand with million, to earnings due up purchases at per a diluted On trends. non-GAAP primarily total cash cash Aaron's free $X.XX, align compared share $XX.X of earnings revenues, X.X%

repurchases. During approximately We capital dividend continued shareholders shares and repurchase the for XXX,XXX through $X.X our return million to $X.X we million. and to quarter, declared in dividends share

dive financial at into I'll QX for business segment. Now, the the results

lower Gross inventory payment million, revenues the Total a lease and X.X% primarily in rates, business. year lease the lease decreased Aaron’s profit purchase lower $XXX.X higher lower revenues, the of was lease result due new a XX.X% customer down million, costs. size and First, originations $XXX.X lower decline to to activity. driven renewal both in portfolio prior by

As lease of see compared expenses. and the point provision business percentage from a compensation, primarily profit to improvement expect million, partially for into as revenues, XX.X% to X.X% offset based for third a The to XX declined XXXX. a performance lease to by percentage write-off operating XX.X%. decreased lease beginning fees we a quarter. was of revenues $X sequential other X.X%. total lower And due provision and of This gross continued Aaron's write-off merchandise higher to merchandise improvement Operating expenses basis compared was the

by with lower gross provision to a a Aaron’s primarily was the due million for expenses. in at EBITDA offset higher personnel Adjusted write-offs decrease lease merchandise business and $XX.X million, $XX.X partially compared profit

adjusted As a revenue, to XX.X%. X.X% percentage of compared EBITDA was

full sales. million, profit key moved XX% are margin million, consolidated I for here sales Retail to was Before year the million. And or the EBITDA of were retail $XX.X results, quarter. the Gross BrandsMart EBITDA adjusted adjusted X.X%. was $X.X was $XXX.X metrics

to expectations were million, same year-over-year basis, Again, the from was by results. Now, earlier. revenues year-over-year. lease at as full Adjusted $X.XX in year write-offs key business. I'll compared comparisons our discussed $XXX.X of $X.XX our quarter up On lease share due points per $X.XX. $X.XX compared I quarters $XXX.X EBITDA the line the with financial to here offset provision at XXXX billion, the inclusion with are The million, impacted of with summarize the billion, earnings fourth BrandsMart, XX.X% that for lower diluted consolidated revenues in X.X% revenues down that to Aaron’s a percentage non-GAAP primarily compared were a three was merchandise due of X.X%. Consolidated factors performance

million company the a XXX,XXX XXXX, stock of During million. from company's of represents the balance end also our and $XX.X the a of debt the the quarter. debt million million. $XX.X cash company This $XXX.X the reduction in third $XX.X of total At net of common XXXX, balance shares repurchase for had end

XXXX outlook. Turning to our

million $XXX revenues at and the company billion XXXX $XXX billion total to million. $X.X full $X.X adjusted for EBITDA Our is to year is consolidated outlook

starting back compensation to stock-based with consolidated the we quarter company. materials, reported add our our XXXX, for will in the noted As of first adjusted expense EBITDA

companies. peer We making with this better reporting are change to our align

For stock-based excluding expense comparability, $XXX.X adjusted million. in compensation was EBITDA XXXX

year. which lower EBITDA depreciation rate Our impacted higher XXXX expense, per been both is last higher higher in share, non-GAAP and a effective $X.XX expense $X.XX EPS interest by outlook adjusted segments, tax versus to has

lease lower our XX% the of assuming and traffic in the the partially program. demand, year are year offset through effective expected efficiency ticket by For XXXX We we starting improving the we ongoing an XX%. customer an our of lower influencing average believe driven cost inflationary full payment environment year business operational segments, are and size the outlook activity and repurchases. Aaron’s achieving first share both both savings The for company high expense and merchandise and share to of A average release half as our XX.X with rate shares, is pressure the and XXXX, average X% both lower expensive. include diluted corporate factors business and businesses, and customer in to in level size, well both lease weighted will million continue segment provision portfolio other lower customers write-offs ticket no at negatively size a size primary count at by the Aaron’s which tax optimization as portfolio

business improvement we've activity stores and from Aaron's stronger year-over-year in benefited The with business of greater year GenNext segments. demand second and is e-commerce both half payment as to improve the trends customer along contributions at at Aaron's from the expected

For the recognized expect savings, expenses. and unallocated at we the business which primarily cost be segment corporate will within Aaron’s

have in and to Through and in achieve million corporate million reductions across between $XX XXXX. expense We expected We're savings functions. initiatives expect XXXX. total updating efficiencies look identified in with you network chain various the forward in we underway But several additional $XX our initiatives, to these to stores, areas supply to future. and XXXX these well is improve

higher of evenly over with the think year we half second slightly of EBITDA quarter, we the year, spread be to expect half year. the the adjusted than of As the first about course performance the roughly by

and includes seasonal payment XXXX contribution outlook return business. to errands a trends a Our BrandsMart, full more of year normal the in

EBITDA of half of the to As and adjusted a cost in result our half of XXXX. initiatives, second expect this XXXX, second higher in reduction be we the

initiatives, XXXX, and in and evaluating through our opportunistic capital shareholders on EBITDA. to in the of also to to in earnings investing allocation part first profile Aaron’s basis. to priorities due Mart’s increase debt-to-adjusted net finally, are Xx expense. slightly leverage and higher growth similar a expect of capital acquisitions in a depreciation spread and conservative to X.Xx an net maintain Brands We repurchases follow be half Returning And an dividends share

as March XX. capital business to to pay announced close increase of As it quarterly will relates per we April X, returning shareholders shareholders, our on of we yesterday, to to $X.XXX dividend, record an of share on

Now, we'll move to Q&A.

Operator

[Operator Instructions]

on the Kyle We Joseph of have line this question from Jefferies. phone

Kyle Joseph

Thanks guys. Hey, for question. good my taking morning,

Just for year. of as kind described it ‘XX reset a

sense you based think Is you durable terms when there. as by in I in a timeline. there? think recover about on that list ongoing acquired give consumers. terms recovery of and of you under whatnot. of to goods build obviously need And demand, timing sort further But about for kind are to the so can us as thinking store high How simple that? from we level any many and Is you that expect there Because get outs we demand you of need to are thinking inflation XXXX XXXX, control? it how just prospects get were

Douglas Lindsay

we've electronics, and Yes, demand there. so continued and we down while categories, well, in thanks. based and we into And mentioned numbers, mean I both Aaron's appliances average and businesses. expecting others in across pressure, What quarter industry some then in our this far demand, that. anticipate really pull that we've was had seen continue really to the few in past ticket both in store talk both And and BrandsMart. first ticket. industry we years. furniture, outlook, really both downward forward year-over-year. in pricing as lasting Steve the do over is sequential on we've brands, going down the in in see some demand and traffic seen mentioned vendors our as We challenges to core QX, average We're businesses in effects both the out seen trade our we've of improvement

Although, brand. demand. specifically, pushes because and to so that Aaron’s monthly price the more in putting fewer But weekly more some overcome tax business first bit we're our And in can little slightly is being ability in Aaron's due we we're bit also bundles and up. advertising prices have we portfolio little there a that at payouts size and to this a seeing a the far, on result which could season quarter, smaller pressure push

Because the have it does portfolio larger tax will hold than we factored in. better when we see that all refunds,

our it if not in any of us are not we're we seen and I above our think believe in But guide. that capture credit And tightening well from that we does we've to importantly, of positioned anticipating benefit occur. guide. kind that impact

originations lease the have think I higher to of year. half do the peak of our comments in of XXXX, XXXX, the half for the lease said we the the in our decisioning, second place at at we to XX the in of did demand impact think whole really year, the we to the as higher term say kicking there's stimulus things would the year of second that those in churn in related second then So I and year the in months, improving terms a is and average year, in portfolio, our we of the about expect put trends in softer expect be first about beginning we demand and all churn really the on of than the half prepared first that related the but the the year. half half we

year, the what we're quarter. the first the forward. to take our really positioned including the forward. right excited wrapper really we share I'd last seeing in in business well that We're the we rates course to encouraged our and really over see in with we're prop. delinquency expect, And marketing think payment value And customer We first our quarter business on activities renewal say, around acquisition what write-offs. improvements And focused put going you'll ’XX customer and just in really our is of a that now, do we're thing, both in businesses the And rates see improvements that. in in taking driving do

Kyle Joseph

the in model. the showroom you. if thank you obviously, this, store and overall build, do of that then then apologies mean, the, overall GenNext hub have in years? And spoken I to butcher count, just store hub, coming it, I recognizing terms count. where the but not see and but Got of But trending in terms

Kelly Wall

I stores say It's Kyle. mean, we're see we're were that XX would some, GenNext open. down we'd not thinking I than we anything that to as when guess more strategy, what may net. Kelly. We're open I Yes, hub the new in XX would -- to that And I less this expect But of any this stores close because forward. we new model. And keeping going that year. locations strategy. probably this there, showroom that's as Again, trend going pushing out as much

Operator

of We now Griffin James. have Bobby Raymond

Bobby Griffin

changing trajectories good about I share bit, questions. customers trajectory the curious little guess, the And anything what to different gains, a market kind talked maybe Kelly, follow you're in store That a is your a for post understand is, on taking to the and better spend bit potential, change let's opportunity change just first, just we morning, count. comments due unpack see Thanks it Hey, there to store seeing then help on for the everybody. account. out in us the there. little that on market you up of

Douglas Lindsay

Douglas, is were this with of And business. that. the our there, we where XXXX off we take spiked of in were pace our in down our we be and strong profitability I slow the really we're for customers. I'll store ‘XX, coming to really closures mean our there encouraged profitability Bobby, Hey, And pleased stores.

do this I that through repositioning market and a and should think larger presence. that making efficient stores have more doing and forward, number of fewer feel doing profitability grow doing more market ensuring in larger our capturing as ways. expect. is we and the also We're really We're come and we we're designed look our this a we GenNext stores through drive have them like great market, customers showroom in But that that new experience to hub share. concept. still customer share to our market while And the

concept platforms, new have over historically we're have Many So and we're stores and one, morphed stores servicing able that merged time digital into we service and big focused servicing, that the then comp do store can really able really we're of around enabled having store two platforms hub may separate, GenNext now because smaller larger footprints. sales or store delivery. our markets this and and And has hub this on stores can payments historically, closed of adjacent been to three with by these warehousing now one selling. that are GenNext smaller

can So believe of the the at drives do same that, our We time increases at and presence efficiency our it further market we more we if of the stay larger customer expand than the time. we the reach. in count what really spend. market market And efficiently will only sort not anticipated

really to we're XX that. we about We're GenNext showroom locations that. with open we year And far store excited and XXX super we've hub convert next have so and as this showrooms XX plan stores. year about So encouraged mentioned,

Kelly Wall

these add hub showroom capital do of With it strategy, as showroom we because on we fewer the has just from side the while to are to locations inventory cost a while as working full this of for well the need that backroom merchandise want Bobby, net savings I reduced don't Yes, closed delivery. on inventory basis floor, side, have personnel achieving a on occupancy keep free and stores. they

done hub. that's the So at

Bobby Griffin

now. want over tough is kind that And right for the environment to BrandsMart. just guess obviously, I to maybe of, And maybe I Okay, I appreciate that. switch business

the business? big having asking I'm long the margin talked for is of into guide demand just implied of also down in results. forward XXXX, earnings that of that the pressure in you think one this despite EBITDA XXXX, competitors, context electronic going in more released quarter morning I the versus term One kind XXXX. profile But guess about do what

of curious what are and kind flowing the within business? that just term profile through when margin long of profile, So the synergies BrandsMart rebuilding you think

Kelly Wall

Yes. Bobby. It's Great question, Kelly.

So XXXX, the in is two to what in address seeing to that the planning stores what what's quarter. new your, XXXX, in fourth first up here outlook we're reflected we're to open

And so that you're year, aware, loss new to as opening as you're tends first no we're the in stores, different. a be

so and And opening some on stores in margin. putting is particularly impacting pressure, up QX earnings

into take the of to account, we pressure new three again, average as the from next to those so right, margins. impact probably downward X.X% So want store I stores. years, that or openings, over new EBITDA opening we're looking the going we're impacted But highlight by and

new the do four it positive the again, a on at stores, be and call As we six million the then EBITDA included in in this in they're million level, third store for opening wall that first and economics the about getting of months with at our the maturity provided per we returning the margins, website quarter, year. we and loss look we thereafter, presentation $X you store expect full anticipating $X material are range and we would the an to X%

Operator

Ciccarelli Securities. Truist of Scot have Now

Unidentified Analyst

how much of concerns Scott. And the guidance? any, centralized talk John to you're if for any baked guys, that, data. Thank in year? if And into further cause like I did last you. Hey, any if about standards credit was you is this you new tighten wondering just is trends can might you seeing

Douglas Lindsay

is this hey, Douglas. John, Yes,

business, to with we're we're pleased lot with. play we seeing. results the lot really have a of consumer our because we we're got to optimize, we levers to So continue direct a In decisioning, a

seeing really leaning delinquencies levels And are trending good. would macroeconomic the is us, environment. really towards we're said the are off before, due And down. write-off which pre-pandemic, for it. right QX. to paid really our at that I in to encouraged, by as that's improving I benefits slightly trending trends of look now we So QX, end I But seeing in QX, think right defensive We're we're what now say we're continue we us.

reduce As possibly of the the sequentially stand points. into basis by first today, now, expect right we to where XXX I write-offs another quarter going

encouraging. really So that's

and So all are continue the off we to decide and whether actions that on expand approval or paying in we'll an XXXX ongoing optimize we've basis. tighten it rates taken

Kelly Wall

seeing on as could the we're expand course directly any XXXX from further our the that, go of as to And macroeconomic our and adjustments decisioning. change adjust to obviously, our loosening we means whether does to either the outlook include or we that tightening conditions customers year, not But activity forward. it

Unidentified Analyst

Got you have with that improvement sequential well? Thanks. And XQ, just when to factors it. said XXX XQ is that's is seasonal or basis do then as points

Douglas Lindsay

So it account. takes both into

So it's a decisioning account sequential into improvement, but the changes. from seeing we're both benefits seasonal it's taking the and

Operator

Jason Bank We now Haas with of America. have

Jason Haas

out thanks somewhat at my And that for rolled good morning. performing if lease-to-own is BrandsMart. Hey, I know an I'm questions. recently. taking was curious you give us update on how

Thanks. curious progressing. that's been how I'm So

Steve Olsen

hey, make Jason, continue BrandsMart to is question. this solution that is Yes, progress for the Leasing stores. thanks we on Olson, Yes, in BrandsMart Steve our our

of Leasing necessary this well team. the But you, pleased together the still working to it's a pie. we're processes, solution we continue And making. business. remind launched tools and we're the procedures we stores run business to timeframe of to are Just very the BrandsMart refine And and our small BrandsMart really with in the early last the progress that percentage May-June overall in Teams year, -- process. between the

Jason Haas

stabilizing in is an you. decisioning? comments with standards, seeing write-offs think -- like if thank improvement customers you're internally Douglas, on you little was down? that's be more the or the seeing write-offs Just wanted the earlier that And Or of are here? may improving, moderating up signs largely later follow bit macro in bring reflecting of And a decisioned any there's XQ, inflation at that tighter sort you on your that least just tighter any were that do about, signs to Great, then leases I rates, with those driven? curious

Douglas Lindsay

Yes.

I little of both. a think it's

think customer our inflation do terms we're processes. success. enhancing majority models, I little the a pressure, think in quarter, in we is although, the as acclimating acclimation, still improvement the I done to I so I as rates, as up a new what see decisioning we're for said, are normal seeing are fourth of the And actively seeing customers the well think in of our year trends. the some continue that trying a that and got our momentum into changes really solving we're to but margin, the we've terms despite made decision. set And and it year, demand with lease the encouraged over proactive the at management to We've last risk and adjusted on results. that we're for really lot to we models of of our We've always look sure enhancements make going

Kelly Wall

Jason, would are what improve add write-offs we relative And XXXX. that to XXXX the to Kelly, full it's Yes. is I year for expecting

For to range XXXX, X.X% kind X.X%. of of a we're come to in expecting write-offs

So as that's we forward the that expect and range go of as as that into year, to a of XX a improvement X% our the from beyond, going long term. basis but in customer the continue of activity year, well in to in be kind we about And back to activities, make gave benefits X% XXXX part as we'd improvement the the down to progress range XXXX. course point we from in decisioning

Jason Haas

talks your that credit guidance. hiring credit And you're timing tightening. if peers you. Thank in, I'm a yet. about from have curious about we in talk your factoring in the seen stock what one of, the lot any could have I meaningfully others more mentioned thoughts just you the think I terms in squeeze some don't of seen I are, benefit think Great. better not tightening

tightening? from guidance, on when may some thoughts thoughts just not see credit to like, So benefit curious even your on it's get any we though

Douglas Lindsay

now, data I'd we'll right be we're consumer will at really the have external It's sources at don't only believe higher gauge and market rising rates into now. with baked lower if and to on default or debt in Aaron’s BrandsMart to into We're should all both tough for we say seeing own we're during restricted, that's from Yes, The cetera and credit thing the either increase benefit rise at And and scores look not that our our Leasing. But and coming savings happening that guidance, our the internal our at beneficiaries. to to [inaudible] with customers. get continuing going balances data et Aaron's. that sources looking rates, what's demand any year. right see is continue we credit any expand BrandsMart

far, be of our seen to for to no continue feel like we're ready and I'd like and So is, that. we've business we'll mean I signs our we strong the we beneficiary feel positioned we'll stores it. capture what we've it, And say but e-com monitor

Thank you.

questions. further no have We

it hand any Lindsay to Douglas like to I'd remarks. for back final So

Douglas Lindsay

you, Thank operator.

today and focused Aaron's in our joining As and talking your investing we hear you I on in you strategies remain the team up, to much. innovating our thank Aaron's you and members whole look while Again, the savings so want We to for and in our to exceptional service continued soon. particular executing to I our business. for out value we multiunit by to growth our who us we on to customers wrap executing interest laid and Thanks that team franchisees and deliver today. cost forward at initiatives want plan thank

Operator

today's Thank joining all you for call.

You may now lines. And have lovely day. a disconnect your

The Aaron's Company, Inc. (AAN) 2 Mar 232022 Q4 Earnings call transcript