AAN - Earnings call 4 2023 | The Aaron's Company, Inc.

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Operator

Hello, everyone, and welcome to the Aaron Company, Inc. Q4 2023 Earnings Conference Call. My name is Charlie and I'll be coordinating the call today.

You will have the opportunity to ask questions at the end of the presentation. [Operator Instructions] I'll now hand over to our host, Mark Levy, VP of Finance and Investor Relations, to begin. ahead. go please Mark,

Mark Levy

good Year Welcome XXXX and Quarter our and Full Earnings morning, you, to everyone. Fourth Thank Conference Call.

are and release Investor our Kelly the market today President, on the call remarks, the me Aaron's we Yesterday, Officer, open at Executive website Joining after questions. Douglas we Steve will Olson; of After posted Chief Relations Wall. Officer, closed, section for Financial investor.aarons.com. our prepared Chief Lindsay; our earnings

about presentation year slide quarter that a our posted information results full fourth full additional our also XXXX XXXX year We and provides and outlook.

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

December more The cause actual refer and our content statements. the identifies found For forward-looking this at of in may cautionary which safe with later tables EBITDA to With comparability safe these These investor risks the free that, will over XX-K of the business forward-looking affect detailed that file in Also, measures that been can turn earnings non-GAAP please about statements, to description statements. call, including supplemental from posted and our companies. now net forward-looking risks to see flow actual ended for I related earnings SEC may other the the from included with harbor Lindsay. release Form be including in on today's call end presentation XX, of earnings, to please our non-GAAP EBITDA, materially and for the and the On financial We the investor our our December provision the release. information, CEO, harbor which a for of may our refer Form year the filings our the we our important have results website. EPS, are presentation, plan supplemental for notes Douglas items the performance provision net week. to reconciliation other to our XX, the in certain materially differ adjusted debt, differ adjusted adjusted release to ended that results XX-K the XXXX, cause certain cash year and non-GAAP measures, earnings non-GAAP XXXX,

Douglas Lindsay

further for Good continue morning, improve the for addition earnings, us everyone. performance and the Mark. on Thanks, strong providing and we've across Thank our Aaron's demand, XXXX you drive fourth full interest and more joining Today, costs to in quarter your we'd taken detail reduce take to in the year and company. to like actions discuss Company. to

retail the lease-to-own continues consumer to better While our environment and low we housing model starts increased remains our for elevated customers. consumer innovate experience inflation, of business serve resilient, and durables continue to including headwinds, to levels debt,

expect are lease XXXX, are decisioning and first enhanced which rates of our programs, recently in We them and our of XXXX, the to have customer year. efficiencies of greater at Because an experience. to over most in quarter carrying we technology the growth major we leading improved categories this, experienced over into customer the of fourth product benefits and business. acquisition Aaron's. conversion higher in course quarter the continue of our These

deliver we'll end and enhanced over $XX fundamental streamline why XXXX cost value XXXX, of also also strength positioned and high to the have We shareholders. our cost continued business, our believe given we structure exceeding target outlook are in provide our long-term to to our delivered the reductions of well million Today, we of range.

company expectations, earnings quarter for at I'll of softer-than-expected BrandsMart. were to segments. our to Now consolidated each our due fourth performance below financial the business and demand turn then primarily cover the Consolidated

The XX. earnings revised the consolidated year outlook in we on our For the outlook of XXXX, company revenues with October $X line million were range. adjusted full we consolidated end low approximately below delivered the provided

debt end million XX%. our maintain reduction balance reducing sheet, XXXX, from balance of million strong $XXX the of at continue at a a XXXX the We over to net to end $XXX of

We XXXX that revised of approximately free in exceeded delivered our cash adjusted the strong flow end also XX%. by high outlook

turning for segments. and The the our Aaron's earnings our that Now were revised outlook. adjusted to year business business exceeded within that revenues delivered the outlook revised

quarter prior quarter, power we higher ecommerce conversion and due However, customers, high year program This seeing XXXX, in X% X In to applications. them challenging to resulted we lease shop fourth acquisition and portfolio weeks leasing allowing to we the our whatever procedures rate prefer. our down channel XXXX, to year-over-year merchandise omnichannel across customer demand of our in-store new has we're a up trends. operational lease to improve first launched they and compared provides marketing the decisioning lease the In the ecommerce decisioning took single lease lease ended fourth XXX% total ongoing up period. size actions with the as deliveries digits, technology, over Throughout programs. of channel is that

the program, offsetting the of impact a the for is enhanced benefits lower lease which outlook Aaron's start our business year. size partially earnings reflects XXXX the portfolio of Our customer to acquisition

up beginning year expect end year-end to to to quarter digits the We the compared portfolio second in lease sequentially our mid-single size as XXXX. grow and

quarter experience continued major our to customer Now during product categories. to softness to due products demand traffic down continued trade the fourth across BrandsMart customer turning BrandsMart. lower lower-priced to and in

year below BrandsMart ended earnings and outlook. the revenues As a result, adjusted revised our with

potential its demand remain in brand expand strength is proposition, we value challenging, Although BrandsMart's confident market. and compelling the of to

and XXXX year, in to inflation followed in product primarily of year, continue categories. on half pressure year the rebound first half macroeconomic in will improvements of second in outlook the the put XXXX, that demand in customer due the high factors assumes experienced our demand full anticipated by the other for to Our BrandsMart

for that highly Board to and shareholders. I and actions and our we look As committed value to are beyond, engaged XXXX taking that to additional deliver reiterate team want management will

including and execute and enhancing the transforming business Aaron's strategy, BrandsMart. We continue our growing to

quarter, We cost reduced compensation we better also to and executives our structure streamlining center remain company store by the of the top on support align across XX% In our performance. greater adjusted focused efficiencies approximately the first both our and generating personnel businesses.

reduction We additional also expense throughout plan to XXXX. initiatives implement

to innovate turn at segment. we've operational positioned our and investments sheet, to made about of the drive performance over will I better now and the With of strength to ever the each to than growth BrandsMart. the are business our long-term balance profitable call business Steve speak we Aaron's

Stephen Olsen

Thanks, rate, in X.X% acquisition despite with largely Lease quarter also in shopping line customer that lease in Douglas, everyone. program. fourth were revenues the choppy deliveries quarter. Aaron's delivered business demand and year-over-year, internal the new expectations merchandise good decisioning morning, only a new experiencing The to program increased omnichannel experience. our higher customer due conversion and drove This improved but customer not our

lower-price we see major customers ticket average across selected items continued to categories. quarter, on product as pressure the During all

represented Our QX, increase was lease compared the quarter than but X% portfolio prior to million. with the year lower ended a a X.X% $XXX.X of as This value quarter.

lease key basis our XX.X% Now our for moving was points was stores. The approximately to rate Aaron renewal year-over-year. quarter XX rate for the company-operated renewal down This lease metrics.

the at Our end XX-plus was X.X% flat year-over-year. nonrenewal rate fourth of day quarter, the

of continue the fourth an which a decisioning quarter. to XX lease our write-offs. to the with write-offs lease is will versus We basis are quarter, improvement as X.X%, enhancements believe we revenues percentage In which technology, points prior contribute to improvements pleased was year of our in

growth Now to initiatives business. turning Aaron's important strategic the our for

for prior more legacy performance of quarter, meaningful since showroom vault.In XX% Our revenues accounted At the financial our X X and the compares GenNext XX% continues retail quarter. doors stores hub year the than strategy, average. points less GenNext end written and in revenue through in year-to-date the of our just at more customer XX includes to That of in-store percentage opened rate operating door our quarter, higher Recurring program. launching we and and lease these the which market opened to stores, the program experience optimization the our GenNext total year continued store deliver stores than stores than bringing transformation of to over company-operated growing a GenNext sales. than XX XXX and

showrooms showrooms. stores Aaron in In in cost XXXX, this we GenNext we stores I'm opened and X savings chain of the that addition, report a X in the to to new we In with XXX delivering. markets plan stores, excited open ended X pleased the approximately XX and fourth with new GenNext XXXX, total is program are to doors including XX quarter markets. in X including

the Aaron's ecommerce Now turning channel. to

decisioning model. We During the fourth customers our X we lease acquisition customer of a to program, shop now decisioning all which lease customers and new across just channels application. rolled lease submitting allows consistent out approve a now by to omnichannel quarter,

Leasing As approved customer's to customer we selection, leasing and full part call in power shop of a both used amount product this, receives be payment maximum monthly each lease online total now is our that ecommerce stores. what can power.

to revenue over fourth during XX% in Aarons.com led on and approval in to expanding year-over-year. portfolio XX% with enhancements lease of from experience While the total XX% the digital our recurring to the approximately year we online to improved conversion previously the In Recurring now to higher enhancing represent ecommerce had written leasing expanding products marketing been of quarter, the experience Also With quarter. stores, and as increased it we revenues channel, fourth total on quarter. and shopping strategies, during leases increased overall revenue continue revenues into to ecommerce fourth over shopping ecommerce XXXX. assortment initiated quarter, in compared generated written the the XX,XXX our year-over-year the focus represent customer Aarons.com. over on prior XX.X% our from power ecommerce has and available continued improving XX% our expect rates

compelling customers and payment options to in continue continue in also our gain us help rate time. weekly market growth on over will see option, We our and attract believe new stores lease Aarons.com. share both to We and payment

business As Through Douglas the first to this the X period we digits the XXXX larger the and as we trends lease to a of last deliveries far up year, XXXX. we high are with end mentioned single lease compared portfolio the of merchandise in year, earlier, seeing end Aaron's than so we excited about are expect same and the weeks year. are

to BrandsMart. turning Now

our for categories where demand a from that As Douglas operate the pull rebounded macroeconomic continue mentioned, environment pandemic. not we demand has the occurred product during in to customer forward challenging

key weaker traffic lower-priced and During to our quarter, electronics. major products in to trade appliances the continued down fourth customer BrandsMart product consumer categories of experience to

As down overall quarter. down quarter, the Consistent XX% from XX% Ecommerce channel. pressure sales with performance, of year prior represented ecommerce a sales in sales BrandsMart's XX.X% product year-over-year. we in our sales about experienced result, in product comparable were total the

attract to strategies We customers. continue marketing new to invest and our ecommerce channel in digital

will customer We investments customers are demand sales later our improve we in-store plan year. half this rebounds focus improving experience our product attract year. assortment, optimistic the that rationalizing performance our of to XXXX, second as another BrandsMart equip by in shopping our expanding store new on product to opening new in to and furniture the category Also

In control addition, focus the to business. we of cost profitability and optimizing continue on

Now for XXXX. on turn over to I'll to performance further our Kelly details provide outlook the financial call and

C. Wall

year our a Relations documents for performance comparisons year-over-year the market to will be X-K Form and company this our file to website. I December to filed found periods We yesterday, consolidated These our these regarding XX, documents Investor and stated make close ended segments. X XXXX, otherwise, basis. additional Unless presentation We the any Steve. investor included and the Thanks, outlook XX-K later earnings prior a for business additional which week. on refer can the financial plan our after be detail information. Please release, for Form on

the at million. partially at and the was $XXX.X revenues at start lower of business Aaron's segments, Consolidated This revenues offset consolidated to fees due revenues retail to the lower business. million lower Let's year-over-year were both including BrandsMart. million the This Consolidated primarily operating by adjusted the compared fourth with quarter. expenses, EBITDA decrease decrease compared XXXX Aaron's $XXX.X to at to lower year-over-year for and $XX.X is lower million. fourth due write-offs total business quarter primarily $XX.X sales is lease

flow a offset non-GAAP As percentage On from million of loss Adjusted free was driven proceeds X.X%. diluted of higher cash total decrease adjusted inventory working meet and was million, a decrease EBITDA $X.XX $XX.X lower This real transactions per by demand. share $X.X million. earnings to capital was $X.X estate of X.X% partially higher. $X.XX. a was purchases increased revenues, was in to by that increases basis, This were earnings compared compared to and

Aaron's XXXX year lower fees were due at sales revenues to revenues are down nonretail lease full retail and the financial Now billion, Again, Consolidated I'll summarize consolidated our and and year-over-year. results. comparisons X.X% sales here year-over-year $X.XX to was $XXX I factors retail business impacted as from million discussed performance EBITDA $XXX.X quarter Adjusted due primarily fourth well million, at earlier. as lower BrandsMart. the same down that that the

revenues, a On EBITDA percentage adjusted compared X.X% non-GAAP were share earnings per basis, to was diluted of total a As X.X%. $X.XX. compared to $X.XX

million a $XXX debt to of reduction million the $XX.X million balance end common company of $X.X company's million in company During balance quarter of dividends of end a debt the represents the cash At net total repurchased million. from reduction million our $XX a $XX and $XX.X paid This end about the of XXXX. XXXX, from XXXX, the and third stock. the the had of and

XXXX to turning Now outlook. our

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

non-GAAP to a from loss impacted lower effective of per share $X.XX a which expense last and EBITDA, rate tax higher year. earnings per has adjusted by depreciation EPS higher XXXX expense, interest been versus outlook of share, $X.XX ranges Our higher

and are diluted certain includes weighted XXXX full the XX%, rate of shares assuming items average share count non-GAAP non-GAAP no The tax XXXX, we For XX.X tax year effective rate the permanent the of repurchases. of impact a share impacting outlook. an about million

merchandise merchandise $XX business. the of that Aaron's At started reduction by million. purchase inventory our are the X% and Several of We comparable investment influencing a new levels Our adjusted are at with continued million lower plan business, store from currently size experiencing. investment the at the outlook. growth year-over-year driven portfolio of merchandise year. At BrandsMart. lease driven and to half flow sales the free we demand in second at is the BrandsMart, this in inventories outlook Aaron's in open inventory in is to business the increase higher cash additional by lease $XX XXXX factors in year the Aaron's the is is the This we

expect sequentially Our lease that mentioned, revenue portfolio in second recurring in reflects And in we outlook Douglas are currently the we XXXX the mid-single as assumes the and quarter. written the portfolio experiencing. grow digits beginning growth size grows to

agreements an of our outlook demand also expect the sequential lower of driven that be the the mix the of renewal written At We would into in write-offs comparable lease higher, increasing and year portfolio. that by improves rates will half improvement with BrandsMart, sales ecommerce be quarter back assumes in in each year.

to cost operating run We year the this expect partially offset in rate the of QX of in in XXXX began actions and by taken higher we costs reductions XXXX. action be additional full to

Aaron's to expect corporate the at savings within We Business segment recognize expenses. these and unallocated primarily

stores, areas additional corporate to efficiencies supply We across have and chain our identified functions. improve network

investments lease growth. lag year, incremental the P&L, portfolio portfolio put marketing will expected performance As earnings begin will we with think the lower to the the on Aaron's business increases lease financial the and the course about size XXXX, size over combined of the at pressure

our in refund a typically due during the As reminder, the season. shrinks exercising income portfolio quarter first early customers purchase to lease tax options

In pressure expect addition, the first continue BrandsMart that at we demand persist through on half to to we of experience year. the

the for year-over-year a XX% first roughly expect adjusted result, of total and adjusted EBITDA we year. quarter to lower be to EBITDA represent As consolidated

with year higher We a loss. from a lease expected partially QX of demand in the also at and net expect earnings QX and benefit the write-offs by of QX offset both The generating renewal lower is part to XXXX. the latter be rate businesses, improvements majority to

to the middle with high of the low the a point follow expect QX point. the being non-GAAP similar year, in also EPS spread We

demand our outlook, last are which EBITDA the and time. provided environment at challenges continued margin Given update adjusted have XXXX multiyear are results impacted and XXXX the uncertainty, year we providing an not withdrawing we this and outlook

These our allocation capital Before call back to priorities review the unchanged. I largely Douglas, I remain priorities. want hand to

debt We conservative Xx and EBITDA. acquisitions After adjusted to through we investing opportunistic an on shareholders to growth to and X.Xx of and continue to and the return while BrandsMart dividends share business leverage a continue look drive basis. capital to to earnings revenue Aaron's evaluate repurchases, profile on to net this, focus maintaining in we'll

to capital announced relates we it yesterday, quarterly shareholders, to returning dividend. As our

of pay per of X will shareholders as of March We April $X.XXX to on business record share on close XX.

Now Douglas I'll to turn remarks to to back hand make few Q&A. it a before we

Douglas Lindsay

you, Thank Kelly.

about and taken performance, what excited seeing was actions XXXX decisive challenging a far we've we're so I'm improve year, in While XXXX. to

the believe of front We profile, model and in financial of opportunities well advantage a have take we're a healthy I significant resilient to positioned and us. business

take your will we Now questions.

Operator

[Operator Instructions] Raymond comes James. question Bobby Griffin of from first Our

Robert Griffin

we we of I holiday guess of about carrying guys and mix so here But driving guess, that's a that -- first the Aaron's lease the then the rate to headwind, written written lease of I XXXX. the signs talked into forward into revenue. you of little core renewal around do growth business off, seeing in a some a some have be probably higher ecommerce,

as kind business these get changing, we'll just is it start the comparisons some in to Or to? of function underlying of earnings of different? some So that kind that of we're more that before this think bleed we're used lap to a business stream we this changing, got about composition of in it look used the the you earnings does to

Douglas Lindsay

say, up said weeks we're our in benefiting was XX% customers out, be stores. approved benefiting first and over which customer Bobby, it's it's quarter. is all, acquisition stores in getting seeing tracking to Douglas. specifically first first that also the seeing it's Yes. leasing new We're in remaining and more program signs we we this X strong to rolled and revenue really would and the in XXX% recurring of I shopping more in and written but going the encouraging.Ecomm online with quarter power, is their ecomm,

And so that's really encouraging.

business we whether That's wants customers, more the customer way the post-pandemic, about going to existing and us just the via and more As to interact. come new channel. the forward, ecomm to think have decided customers

channel a that important really we're So that's in. investing

Our customer way. agreements our wants omnichannel our that optionality ecommerce by stores. originated It's and us flexibility important serviced really a note with in to to are shop an

to stores are component critical very a Our this.

have in We actually happening applying stores. and conversions are customers online our

opportunities. stores. other and cart Our calling up customers follow on out from folks our these power are of to stores also leads leasing remaining servicing dropped We're

all important, out expect Probably say our and application-by-application the model time solving making as know while of risk-adjusted and incremental comes returns, rate each And renewals, all regardless we're pre-leased is be revenue I basis on earnings. equally managing product and to a coming So the we basis, are stores. this write-offs our we're decisions and we for that deliveries, making of channel on driving risk margin decisioning as appropriately we renewal it believe decision the in. is an dollar up,

Robert Griffin

Okay.

take the to like what a Or kind of deliver does just kind business to trending So do of guess, still but maybe -- taken look off, I little, lease business? from to the as further, portfolio just still we, this is change margin of say that it the you combined I growth kind change able composition to the of profile like a historical step continues ecommerce has of being the at seeing the we're here when Street margin I'm business. down. trying of the investors a EBITDA -- used to -- are kind or just

that Aaron's portfolio around back kind wrap how path and earnings just and changing head of store it's store business? as mix So well growing trying how business, then growing lease into of and the we the the my get as to the

C. Wall

Kelly. Yes Bobby, it's

pressure here we're near in the ecomm as putting is in seeing term, So on it margin. growth

overall is in that in lease tend about that right, we've the the rates lease margin.Also, through, of originated term, coming half first higher. see in lag so we're I As margins of and that the our is past, which virtue mentioned on with it's first you originated the continuing the whether this investment margin portfolio improvement talked my and as help of be agreements come also increased But profit will prepared the would dollar deals But more in would as impacting size by as be lower ecomm year. is channel EBITDA grow well. right, tend portfolio grows, remarks, the -- year getting again, the to half larger pressure portfolio into on down flow lease the to really portfolio year which as would the renewal that and the -- that But again, for write-offs through from marketing gross putting near store or side, the back the size, margin in road.

Douglas Lindsay

see lease start and beyond as days portfolio, we will incur to multiyear lease the benefits Yes. so flow-through comments, margin as the in average fuel also over is first really a period. my written initially the once And sequential months Bobby, the XX a working -- lease you that and the over there, carry for mentioned The benefit marketing over after way business in growth just one we growth. the expecting we which I capital XX our last to little know, get see we as But thing QX. the get way -- incur operates write-offs lease-to-own portfolio in we're and more to costs

Robert Griffin

I of X for there's Okay. some Very I commentary little off helpful. there, questions refunds mean, delay. out X, I to, tax final guess bit guess, me. a

is seeing really of comps we're or mind. up side low revenue back on keep Or of is in environment be are the help to level? margins the dependent of or X, So getting EBITDA kind to single-digit the us it for just EBITDA BrandsMart level of to kind cost there there further guys kind rough just of tough there then to just anything you if And comps, on kind in of this maintain removed profile? mid-single-digit things,

Douglas Lindsay

first. the take Sure. season, I'll tax

another good off over. we're BrandsMart store little be to of to to really to good the it's to in is flow-through. did But compelling which is particular. on that. on Steve winning year, team positioning be of assumes continue XXXX business. half going our look demand opportunity improve story growth we managing aware and does and we're the half in the BrandsMart, market ultimately, right And we checks outlook electronics are Augusta opportunity and we QX new know, tax can and and the will really know, expect we is year. to options at course to that similar costs refund the store it's starting. and compelling, South structure. And season a we'll back provide you're second have is season economics activity in and a started, believe of in over the in in as to on because last store as top that we're forecasting here.Our see released the Florida support believe when as last And our that detail call, of year's on year. about to forward. this brand tax impacts should similar In very just job never and And we Georgia, improving challenging, being you in and it's to has share We these delayed stores last corner. mentioned right, until see sure top purchase really and get payment be ultimately, tax around opened we demand have improve everybody But a over structure. of starting we open The layer the going -- that we will we'll earnings corporate in start. you growth we optimize regards done and similar A appliances season to existing his this going cost And spot the marketplace just top and and season I'm this earlier, year. year, for is some bright line of line of more the it's a going X-wall year's demand The the As been margin market. be early overhead great this

Operator

Kyle comes Jefferies. Joseph Our of next question from

Kyle Joseph

obviously, at want that wrong, and was difficult lagging expectations, -- Just But is now. What's me discretionary we to that a your stores? between periods? perspective, function kind retail function X? get of the nature understand like how with the a of in really customer don't consistent of of it performance variance Or the the the BrandsMart is in consumer driving is sounds base the purchases right recent your respective Aaron's in

Stephen Olsen

Kyle, these this is really the that combination. between at the driving what's breakdown One that decline and being really furniture, ticket I goods but would a of Steve. it's we say is appliances, transactions durable is drive and in electronics BrandsMart consumer is comparable sales.

ticket. then call about, that's and X/X So transactions it, X/X of on mix a on

Stephen Olsen

between our portfolio our business. is talked of a which did again, the lease-to-own benefit about in this a BrandsMart, business. pure the kind business Kyle, retail being business Aaron's of and has And difference up bring past, we've you the

there bit then in is same more greater and and And for growth customers consistency.So growth see time, a consumer would demand you company you we're lease-to-own that, you refrigerator, transaction. durable lease-to-own to a the of more So we're originating these a a renewing downside. is of needs. kind we're to on their Most And related customer of on have a the traditional and meet of need so our new need as new it's again, needs-based leases business. providing receiving on general thing which side, typically over furniture. happens goods, they when in pure payments They retail see in than to don't customers are them access mix. mentioned, the you They options, part the payment

Kyle Joseph

but And or underwriting that, follow-up talked kind the being for to from one outlook aside it. credit, of I Douglas. a of then helpful. of function changes ecomm know for about Got growth, for On write-offs the me you Very any consumer? health your

Douglas Lindsay

No changes really.

in to channels our continue customers and approving model continue very decision all and this rollout slope risk optimize say algorithms one we model. be helpful Obviously, our the continue origination has across decisioning continue We to our predictive. models of to and to of been

happy said have our of Aaron's right. and resilient the great confidence consumer, we very a customer So really as it resilient. do.In done continue seen there I'm -- Kelly We've I really we've and there, with model to customer. the been be has needs-based Aaron's what terms mean,

If in pretty well. we revenue mid-X% feel there compared to business recurring in our has which written down hung you like the portfolio, retail, look as was range the at the in

pull the pull in of As business. forward expect Kelly ups, be in much to we more we in going don't BrandsMart so continues there, into QX. be will of we said most materially But terms stimulus But challenging as relief. also, demand, BrandsMart aided have the expect seen period, forward the of albeit think, do much as and to Aaron's relief didn't

and year, sequential trends. full are negative for sorry, demand and these QX the at of we QX expecting favorable due comps at be to X% BrandsMart but We I'm year 'XX sequential the I comps, improvement expecting to in BrandsMart in -- throughout mean, EBITDA are

C. Wall

at And in BrandsMart negative be well. to QX as comp sales comps

by is that percentage out of here, Kyle, of ecomm XXXX originated from customers. as The our lease greater new write-off revenues, higher, other they thing a more is will as agreements be I'd again view driven point on well as mix a

full is higher each year-over-year. year X% this of of to going and view somewhere quarter our so this a and on between in X% will we're be basis, And year that land year

Stephen Olsen

last one thing. Kyle, And

XXX% conversation the delivery are we're growth this higher growth that seeing that seeing, is high growth overall wrap write-offs are up and single-digit business. we in the of ecomm Just because to those

this about we're So into that, and we're deploying working growth super excited capital cycle.

Operator

question Scott next comes Instructions] Our from Ciccarelli of Truist. [Operator

Joseph Civello

Civello Joe Scott. is for This on

discussion bit. The you're the about in there that maybe or thinking you the about would just any follow half. drivers product -- side, give wanted the to color second BrandsMart Can little kind the can up of on talk great. Just a of on be we anything recovery

Stephen Olsen

Joe, is this Steve.

systems those already of things life like comps expecting of peak short signs from some release. demand like forward also away durable products during believe start even appliances, the comping that like further periods demand So what in and to further over move the some what should seeing and pandemic pandemic during we as obviously TVs, the forward computers, release. that weaker like that is, some we believe experienced we're categories seeing we year. we pull cycle last the pull cell that phones, of these They're that.So we is larger of we're some gaming And what

So well. that's guide with as helping the

Joseph Civello

And then just switching gears a little bit.

last guys quarter, little you just like any shopping talk think trends higher Can you I customer about a income about talked a credit slightly seeing there? bit.

Douglas Lindsay

Yes.

in in material into seen haven't customer of coming Aarons. time really at We anything this our terms changes

decisioning our helping That's to quarter. in not material credit scores any in Aarons.I the business down of baked and that's provider seeing trade credit last also think outlook increase business, XXXX we've However, first BrandsMart from a provided. importantly, seen leasing second year tightening mentioned I our and of the the represents that end at continued And look we've standards. about BrandsMart, we're business. there we've have through not first but got a That them any XX% of think before, credit started we Aaron's benefit in

Operator

further At registered. Instructions] have no stage, [Operator this we questions

I'll So closing to Lindsay for over back remarks. any Douglas hand

Douglas Lindsay

the our Leasing BrandsMart, of thank team today, operator. to and with you all thank Take contributions. and for at Woodhaven for forward for -- franchise care. you look Thank company Thank of all you, members you call next Aaron's, BrandsMart your again continued We you quarter. our joining to speaking and

Operator

Ladies today's joining. Thank for this and you call. concludes gentlemen,

lines. disconnect now may You your

The Aaron's Company, Inc. (AAN) 27 Feb 242023 Q4 Earnings call transcript