AAN - Earnings call transcript Q1 2024 | The Aaron's Company, Inc.

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Operator

Good morning, everyone, and welcome to the Aaron's Company Q1 2021 Earnings Call. My name is Angela, and I will be coordinating your call today. (Operator Instructions) I will now hand you over to your host, Marc Levee, Vice President, Finance and Investor Relations. Please go ahead.

Marc Levee

Thank you, and good morning, everyone. quarter conference first our to XXXX call. earnings Welcome

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

that We XXXX provides a also presentation additional quarter slide our results. about information first posted

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

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

Douglas Lindsay

morning, your interest in you Good joining Mark. us everyone. for Thanks, Thank The Company. Aaron's and for

in to seeing this performance guidance, encouraged I'm business the with line so in that by quarter Our In I'm continue the positive the first our by The Aaron's momentum year. significantly far our in in QX omnichannel that trends and driven year. business, was our launched customer grow decisioning new acquisition we and Due channel, e-commerce seasonal to we last in of the lease program we've quarter. the major common taken categories. merchandise This generate bottom we actions the despite line driven exceeded our expectations lease lease continued top first smallest size year, quarter demand we lease-to-own the in all portfolio growth across pressure. it's year-over-year deliveries experienced a our and BrandsMart, the in decrease decrease business, by This for At decade. the in to was for to improvement

adjusted remained the are experience year both did quarter we month in While Based and across sequential improvements comparable reaffirming sales negative, businesses, first our XXXX outlook to and in detail in first raising for EPS few EBITDA, estimated diluted and non-GAAP a a revenues our provided for minutes. due this more we Kelly on rate. February each quarter. performance trends we full on XX to speak tax our the demand are will in lower outlook

expectations. to This our growth business, portfolio. prior revenues pleased line and led with report adjusted At Now Aaron's year to the lease results merchandise increased into deliveries as earnings compared the in that delivered recurring quarter. turning revenue year-over-year written the in period. we I'm to the to first X.X% of the consolidated

basis now portfolio April period. we've into as lease quarter seen same-store acquisition points all X.X% the lease same-store I'm On portfolio our merchandise our lease driven our the an down compared our the the of starting only basis, beginning size about ended size program, lease time power April, to it X%. report portfolio size portfolio we've the a continue provides in that year inflection quarter last same where new is and down close remain to lease to continued year Aaron's prior the larger by was We our than We to gap after which lease of happy over customer down with ending omnichannel with our further leasing momentum has the the from At e-commerce deliveries and X.X%. May, excited point same-store end was XX the XXX% size reached down year. growth. customers. XX.X% decisioning only improvement year-over-year, up This year

quarter, As and by conversion we program to continue total mid-single-digit lease rates end is the lease highlighted size applications, significantly growth it expect higher in of last year. portfolio to our this drive driving of

Now turning to BrandsMart.

comparable revenues remains with adjusted internal quarterly in quarter profitability While BrandsMart the challenging, sales. expectations above sequential and ended improvement earnings with the slightly our

second expect demand of the to the product an our We rebound customer due half to primarily continue improvements in anticipated major to in year, categories.

technology We marketing the capabilities in to are and enhance our business position for continuing also long-term better merchandising, to growth.

is confident markets. in proposition Although to BrandsMart's value expand challenging, potential and the we broader compelling new remain demand to still environment

we're how trends I customer business. Before the the in over I I demand Aaron's call reiterate am want to Steve, turn seeing the encouraged to by

where larger our just now mentioned, is point inflection was portfolio it same-store same an than size lease I year. have last time As at we reached the

performance into second flow-through of profitability, now will business earnings We Steve half call in to to incremental over the each to expect turn discuss to year benefiting this and the lead XXXX. segment. I the operational of to

Stephen Olsen

the morning, year-over-year at same-store X% XX% over good basis. business, approximately and and increased first deliveries on quarter lease the merchandise a Douglas, Aaron's everyone. Thanks, In

program lease are drove year-over-year us in of consumer confidence this customer that categories of growth program new acquisition furniture omnichannel share success we decisioning our product The Our electronics. in major the and winning and appliances, gives market.

the size portfolio million. ended $XXX.X lease Our quarter at

compared declined we've decade. in XXXX. quarters the to first decline portfolio in a $X.X best of quarter of a of the decline million first of a $X.X as As this experienced The mentioned, XXXX million and Douglas million $X.X is one in only

for lease into metrics. all lease year-over-year mix The was the stores. key rate the rate renewal for moving the to was due of This points e-commerce agreements XX.X% basis portfolio. renewal written to our XXX company-operated Aaron's increasing Now approximately down quarter

Our nonrenewal was the XX-plus day quarter. improved the rate quarter, XX from year-over-year, points which at up but points was the of last first X.X% basis XX basis end

technology which were up the we was improvements points quarter, but year of percentage to write-off from in first our to the lease risk. the to controls prior time. will over XX basis During the basis points believe enhance quarter, versus generate quarter. continued this In XX decision We mitigate to also improve X.X%, quarter, lease revenues write-off last improved

write-offs higher As the than to we our ongoing due demand trends. to we last average expect historical mentioned quarter, strong be do

write-offs a business. inventory As compensation, the incur purchases, sales-based reminder, and deliveries, periods we costs, in of growth advance revenue in marketing of to recognition incentive high due of in merchandise the nature portfolio

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

since the market quarter. quarter, new to stores, which stores over improve markets, for That prior our and and stores launching stores our quarter, includes bringing XXX revenues in year XX% GenNext first our of program. in retail operating XX including program than experience accounted XX% opened In the end strategy, optimization hub the GenNext X more compares the in-store these model. and to we lease in company-operated total Our children customer At GenNext the continues the of sales. to

Now Aaron's e-commerce the channel. turning to

revenue year-over-year increased in prior the into experience year XX% As leases written XX.X% as recurring quarter. Douglas the increased significant XX% channel. initiated year-over-year over quarter. mentioned, this total lease we Aarons.com compared from to represented to approximately XX% Recurring revenues from generated in the on the XX% e-commerce portfolio in total approximately represent In and revenue continue growth and of first quarter, revenues of now written

which and seeing that earlier, excited mentioned about into in Aaron's the momentum quarter. trends are continued the are Douglas business, the As second positive we have we

the market enhancements our attracting payment rate are flexible business, With are gaining compelling with confident customers to and we and we we share. making that new options, lease are ongoing the combined

product to demand through year. continued BrandsMart. lower-priced and Now categories key down products rest electronics. for which customer to our environment in categories, sales will quarter, our and BrandsMart to improve the of turning experienced consumer the traffic the product customer during BrandsMart we trade believe improvement weaker sequential experience of appliances continue to Despite comparable the challenging major

tightening experienced credit credit We our private with card also provider. label

of trends, X.X% As a down quarter result these comparable for were sales the year-over-year.

quarter. this However, point is from a the improvement XXX-basis last

to We and marketing attract new e-commerce shopping continue digital strategies customers. in to invest our experience

this that our significant customer first rebounds demand We this on channel. in to growth channel we investments year. also want quarter, sales e-commerce the in as our this and growth to are focused that growing business-to-business are lead I will later experienced in mention optimistic

our Now BrandsMart. turning at to initiatives strategic

our customers. on product new are experience our We our in-store attract shopping focus assortments rationalizing expanding and product furniture continuing improving to mix by to

another are last we we Georgia. quarter year. excited store store in Kennesaw, in and this addition, the that The Augusta will opened format size similar be In to in store opening about later new new

compelling forward We footprint proposition to looking and are markets customers. to and expanding BrandsMart's value our offering more

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

C. Wall

after filed We our the investor and information. yesterday, presentation earnings Form which release, Steve. X-K market a Thanks, closed included additional

due due decrease Aaron's $XX.X regarding This to the year-over-year lower be BrandsMart. offset personnel revenues Form our Other at increased additional the the retail million. Relations our This adjusted quarter these in $XXX.X performance consolidated filed is lease Consolidated compared advertising. our and and a and also X both segments to basis. $XX.X higher compared comparisons were can million. business outlook lower refer on due I periods for to to Consolidated operating was fees to year-over-year make These for lower primarily write-offs, at segments. expenses will documents Please the were partially higher for EBITDA investments by and operating for found quarter. revenues expenses sales the company revenues lower Investor business to of XXXX year-over-year any to We detail decrease and XX-Q financial stated, million primarily business be primarily otherwise website. million at is $XXX.X and other Unless costs. on prior documents first

but primarily $X.XX. at lower As favorable The was This year-over-year to cash support a and prior driven the QX merchandise in was by per consolidated share a million year, the total adjusted of was offset estate higher than new agreement revenues, cash, higher on EBITDA inventory a from Aaron's flow the of purchases real of percentage growth by Adjusted of X.X%, partially was our basis, expectations. transactions. decrease lease internal to non-GAAP business was free and earnings. deliveries proceeds use lower $XX.X loss

million, end which quarter, $XX the dividends. had the first the balance quarter, cash million both At company of $XXX.X of to were the debt the and total During million company paid in favorable of $X.X expectations. our a

turning our outlook. to XXXX Now

As for full and on and this performance our we're the business, far Douglas year based seeing reaffirming revenues mentioned, adjusted we outlook EBITDA. so in year the our are trends

non-GAAP for X% revised outlook provision than and lower raising XX%, effective diluted last EPS lease for the XX are estimated is write-offs is revenues year X% guidance provided a due The points We still rate effective quarter. tax prior and merchandise rate. we expected Full to lower to between percentage approximately fees. tax of lease estimated be

our I call These call. I want review from to earnings priorities hand our capital changed prior have Before not Douglas, allocation the priorities. back to

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

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

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

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

Douglas Lindsay

Thanks, Kelly.

the remainder remain additional committed to that beyond, of management shareholders. to that want deliver for team I to and value engaged our look highly board taking and XXXX we actions our and will As reiterate all

BrandsMart. investments customers. for I'm to execute to to our that, to and our And better the that advantages continue efficiencies will the with increase serve multiyear and allow to we distinct driving continue confident enhance strategic the market Q&A. are I over our operator call business both at now will making share plan, and We our turn competitive innovating Aaron's us

Operator

Bobby Thank from you, James. the We Griffin Instructions) Douglas. question Raymond with (Operator first have

Alessandra Jimenez

moving Aaron's, right forward? at updated Jiminez in This the first are optimization count for then store is Alessandra we efforts you the XQ. Maybe any in Bobby. on talk how level of on on about Can optimization your store acceleration saw store thoughts progressing? store closures And efforts

Douglas Lindsay

thanks for question. Allesandra, Yes, the

As in we And as you stated we're each e-comm our make doing market. that, to can in growing lower can see, customers but our a portfolio, previously, also strong base our we we're as continue rationalize markets through as market. and to that in each try serving we sure way cost

in and so assessing closed the stores, doing think with efficient stores. markets is And of as very footprints in number stores about particular possible. XX real also full XX of to that capital, constantly cover showrooms. quarter, XX best now of our we our thing estate the of through do the customers the in over timeframe, those optimize continue number sort terms right efficient the working stores, thoroughly to be We number to opening terms I'll course both did cost-efficient that, we're way and in super to open close. net markets ultimately that and incremental in we we're right the a we're as to committee serve continuing showrooms more the GenNext and but position we within excited profitability. not state those more new One we All is box a will of in are stores smaller stores year. we're that to We're lower of And a markets the stores that we're going in say the in to of our

Alessandra Jimenez

improvement? then Is trade to a in Like we lease specific to And that downs, improvement that? sequential you portfolio helpful. anything traffic, pleased That's Okay. anything noticed were April see and drive that like in May. there the

Douglas Lindsay

Yes, of excited the about in terms growth in super seeing listen, our QX. we're portfolio we're what in

in our that because deliveries of works that see and our near-term current until the the sold and we heard, you that spread As they period, later in of business the things be compensation are and impact continue up recognition of we way year. year-to-date life And like agreement, marketing don't incur and considerably of to is The we over goods the ultimate revenue on. the cost incentive-based have in turn an I'll we to once We positive. write-offs. movements we is that profitability. noted we same-store to which a in that that we portfolio, that, there start our to bottom portfolio growth the But grow positive, just line. the starts And as to expecting flow-through with lot example. our the this portfolio, there mean inflection little point year you see give we're an turn

size gross the that. gross portfolio that margin we have of of get margin to to over see And we flow-through significant little if of operating million look write-offs. equates month. about EBITDA $XXX,XXX we that have, $X every We're we of excited For on a million you growth a addition. about after And leverage business, high adjusted at an annual about super the $X because basis, in

of increase the not of year XXXX, think that in the year hit million the half up mid-single the to we of lease up assume the As the the of that but XXXX. rest the of we about benefit do about year, $X as And 'XX we growth, portfolio to think million only only at $XXX portfolio digits. We end like but end digits XXXX portfolio full size, will second the so up our started million $X 'XX, you equates to by believe of projections year monthly of mid-single total inflection we a over being about our kind not mid-single point with value. digits grow end by an by being --

the that's and bottom just challenging are share as of up into mean, more we XXX% great of to way. what $X in are success the we this we through in, a still and business and that's April, capturing e-comm in of I XXXX. to month we're interact but We enter we encouraging over more see And seeing meaningful meaningful customers mentioned terms enter wanting million as with this is month, so in the to products, million that's a into coming $X is flow that's very in program. market omnichannel us so We of our are our that line. that's a as really, very demand very -- for

Alessandra Jimenez

to Okay. That's line basis? And confidence BrandsMart as you annual factor for gives maybe what just during over to throughout move multiyear just hit get you growth at lastly Is BrandsMart, then that back helpful. comparisons top on accelerate guidance? very me, XXXX the a switching we it a primarily to of half the

Stephen Olsen

we're comparisons, back year, you It well this as comping over definitely Hi, the appliances. what is is some lower electronics exactly in pull-forward the release then slightly and said. the year, starting on last of as that and Yes, demand comps Steve. we of furniture expecting but the that moving to consumer it's half are in

Operator

The next with Kyle is Joseph question Jefferies. from

Kyle Joseph

on Just margins a leasing about contribution activity the function the quarter. there or what's really kind and in rest not year? want Looked talk sure the GenNext the for of on to leases or that's I'm driver strong. or of outlook of buyout the if

C. Wall

option growth Kelly. higher typically you The driven improvement it's QX QX Kyle, into margin is is, the by as largely from you And mentioned, you that see in purchase as again, activity. an early of any go the year.

And or balancing the the quarter. guess experience mentioned, then I the risk expected done team great did has of achieved in in deliveries. as so that portfolio growth we job And the Douglas improvement as in kind quarter-to-date a we've

which and place we so we've with risk the us be in up portfolio in in continue tools write-offs that as grow again, our the put line is are expectations, manage encourages to processes to And while because slightly, they working. the

Kyle Joseph

kind post lease-to-own I just of Aaron's of seeing akin the the you're now of What an we Are those trends And what in Got are on business? Or of are it. to at BrandsMart? on guess just where kind side kind BrandsMart. seeing update us the sales that integration are deal. on more then update you we

Stephen Olsen

Steve, Sure. glad question. to that answer Kyle, it's

just side waterfall fully with financial Aaron's in February First, to both state experience at from timeframe. see leasing the question a to as standpoint. and our we that BrandsMart on rate sales the on the BrandsMart find team, regarding in the to store operations, portfolio well I'll And as on growth we But decision technology the attach improve and specifically integrated year-over-year customer all the continue of ways both BrandsMart basis rolled performance, did out Stores BrandsMart team performance, and retail an the leasing BrandsMart. your

improve We focused to continue on ways effectiveness model. drive to but really the finding we're in efficiencies and

Kyle Joseph

it. helpful. for Very Got me. one Last

drives I take on Just to of and to on great. and chug health demand an appreciate update give credit growth of if which stubborn, consumer, just just don't obviously the along. update e-comm they the and and I the color that I just specifically kind credit, growth higher. been has be continue underlying would consumer of But both the underlying know going inflation health but is the appreciate an performance, us on

Douglas Lindsay

about. think mix continue We to underlying appropriately, tough. down, them. power a happy past. some so into maximize we're and to on the trends mean in and sloping we of into terms read there, that found is increase there's what of risk that the at are It's of last really lowering above are leasing the I write-offs so going lease our profitability is we've tightening success. of for ways been and up between renewal seeing certain rate year Which us I of this but BrandsMart what's consumer channels. standards, ultimately in the would optimize with beginning Kyle, you're things -- said seeing end just has pressure of sort our trade eating Ultimately, we're also there the it, the going in and seeing Yes. lease inflation customer say there decisioning out the and I'd providers really in underlying saw like predicting you've we our say resilient been are of decent that and at we models and decisioning at know we economy, pretty about year. and starting out I in is all our is our customer shift as what set on Most

do electronics, success the to arises. made well However, that omnichannel existing of does out we've furniture, we know power down wanting to acquisition would the rates, poised driving Last to seeing to or customer higher providing broader believe while say seeing of we our across signs customer us our at are previous the the We're haven't we the also sales. I but getting of conversion leasing trade with all market significantly we're to way. seen on more driving more. up seeing show the and thing wanting And decisioning is that it are in changes about capture of at XX% but which our sort across and Aaron's, market. that about with that's customer we're the product deliveries really economy, yet seeing right and even more opportunity of categories, just new and material numbers significantly customers when -- that the we're state add-on this and we're slow and our of to in ability is, it's -- when most We're opportunity And in more Really is and we're Aaron's program, there. for capturing And customers. Customers we're our encouraged higher all which is great an now our customers more seeing has transact omnichannel encouraged really growth appliances lease share take of getting being what you in share encouraging. do us, can our with deals wallet, April. channels customers

Operator

is Scot Ciccarelli question with next Truist. from The

Joseph Civello

write-offs quick came we I were a Joe is Scott. in question. bit for on better little a This expecting. just than had Lease

the kept year. guys for XX% obviously the You

trajectory the Just color wanted to know little through you if you're XXXX. on expecting a could give

C. Wall

it's Kelly. Joe, Yes.

of seeing expectations of full though the write-offs we the can and earlier, year. continue good year in in performing we're call, the what full in originated X%. saying you be on noted, X% as the to customer I and is for feel As right? continue key year-over-year, forecast portfolio, Douglas expect kind really was e-comm to between write-offs be continue said The mix to to does lease on what challenged including terms we of line increasing deals. with the But for about impact our of we're the

Douglas Lindsay

Yes.

other sequential out, The you'll is investor you XX-plus rate our at in improvement. see improvement in I'd sequential seen day our trends presentation, that point if look in we've thing write-offs presentation, sorry, our our delinquency from QX as with same

While trends season, think encouraging we that what naturally in expect. we and see during tax those with are we line

Joseph Civello

X% Got X% I kind on just you. deals, to still does check sense? And long-term like in the that term then thoughts, of make long wanted to

C. Wall

much in say term, general mix not we're our is how is forward. e-comm largely going portfolio. channel on of at depend us any Yes. a different line long as believe expectations. to But seeing with I think kind that Again, versus originated the What the through point Look, lot get anything I'd will of leads into our that's in-store. we XXXX this

Operator

The Markets. Chukumba is question Loop Anthony from next Capital with

Anthony Chukumba

Great job questions correctly. guess first on last my -- I X pronouncing question my by BrandsMart. name

But how is just still there's to your Georgia because and it's in lot love know know performing I the obviously expectations? consumer terms Augusta, relative electronics. noise for right appliances relatively and it's early, -- consumer demand I to store one, now there's of would but First a -- tough major of

Stephen Olsen

for Anthony, the Thanks question. Steve. it's

brand as selling great and continue continue with store our we year, just environment. and train the this we months and improve on store you, X, the ramping from we about September at the market opened we to the way demand to feedback and remind to about we're this the we're end broad X pricing so to both through promise we're excited and thought, well continues really getting in-store environment, And And customer, to Just challenging experience last the it. as skills. We're assortment. into where push the the of team ramp, our their

Douglas Lindsay

underwriting deal, we of come one stores were what of about we And to ramp. our able about on encouraging Augusta kind so to, sort of better these build-out. how our able that's is we're Anthony, that still than it's our in to the things relative were learning we on first store, thought

I think is OpEx net-net, our in coming favorable. more

it's capital learning seeing continue in store of that find the ground. our we there. that sort sort market will, and there. pressure there, you and customer the to where good our macro out return market trending great and ways break from on we are to But base really if It's feel a into core about that's We environment to of

encouraging. me in future, when which look this I at and think spent is how what's CapEx we've encouraging stores smaller that how informed to really the a what it's is is at really BrandsMart than we And open has do format lighter store that that, historically. we and Kennesaw potentially we

Anthony Chukumba

second then terms you to that? be opportunity we just And kind into of also that better -- of so read happenstance? -- in a I Georgia I Georgia. store that's see it new is new as relative do guess in it. Should Got Or will Florida? stores mean

Stephen Olsen

is Florida Anthony. primary us. for key again, a Steve market No, It's

As development then real and comes what's it real associated our that look the really to down estate costs at we estate strategy, out. availability sites to occupancy of and build

We look us a for major key hopefully hard coming that the all markets, find works the site in are to we'll across and Florida, working quarters.

Operator

with question Cowen. The TD Hoang Nguyen is next from

Hoang Nguyen

dollar XQ not up maybe deliveries Thank a that, to color Can think you're you around you. in And April I hard you Congrats comment talk on May? I bit if XX%, about growing I too? to imagine are that quarter. really, right, in by about can that, give guess the just as Maybe origination? mean and loan more a I volume. Because can in little ticket. it's gross you talk into and some average about ask you wanted maybe

Douglas Lindsay

to, numbers mention, we of written. very delta continue we're recurring but more, ticket. is but year-over-year just you was term We're we I'll X.X% revenue that. only, strong product on sort working talk we drive recurring X in Yes. to to and written. can order were say between quarter, only a little ways said, mix at look product in to up X% and up But wouldn't offerings, The X% quarter optimizing see it the position down I at those seen and a ticket our to to as in bit for ticket. X.X% revenue Steve, this ultimately, We've deliveries, about up, look

at And price and things certain looking volumes, at certain we drive to so that always doing we're are trade-off. points

Stephen Olsen

Yes.

the pressure Just Aaron's a see and consumer We seeing that of our in to of in deliveries, and campaign, add especially some our messages our business lease at some growth on around with out price categories, really did the to to growth drive ticket at value merchandise it, we're those definitely electronics. But strong promotional items deliveries, key strong offers we're our down as appliances and there focusing marketing points putting particular in those Doug products. lot strategies little has QX. on low a trade mentioned, in in price

of down, is to desire obviously drive trade customers. but also that it our is of some Some new

Douglas Lindsay

are but are at the new leasing those only agreement, With more I share we're customers, as And decisioning lease all second a omnichannel getting that power. new getting attract trying lease thing lease many leasing to that of not is get provides our price not also want our agreements customer's of last lower mention to our wallet deal from to agreements customers, existing points. The power customers. Yes. that, within engine making to only we of add-on new trying first we're

putting that there more ticket so as as pressure wallet. we're the very add-on of That's ticket some per thing, good customer, is, a that But share we while And more average because on see well. is down of agreements getting agreement.

Hoang Nguyen

Got you.

mean provider I about us your your think private how they label could have you I slightly tightening. remind is much penetration mentioned sales? maybe do you in

Stephen Olsen

promotional business, standpoint, Yes. our than card in them This great key just and little be in QX. I'd From saw a is been to marketing a drive we for recall, around of sales, credit considerable answer a so to work Steve, XX% closely label mix QX with private that. activities years, They've again so a our glad a more and overall it's to partner our amount. and Yes, holidays. tightening we many of

Hoang Nguyen

my should about personnel last forward? how going expenses. and expenses Got operating mean on is other think it. I And one we

C. Wall

Kelly. to say margin for of so guidance, Yes, I of the are reaffirmed on remainder expectations expecting we kind And mentioned XXX 'XX. didn't I it call a be change again, improvement a basis as our -- continue same may perspective, Hoang, from it's that, have the our it was of XX to the last a revenue. what I'd percentage we call personnel believe point that

OpEx year. driving that year-over-year on which increase The million -- seeing side point $XX One, we're initiatives prepared deliver representing $XX that I savings improvements of remarks. OpEx then the Also, to $XX quick of As in represent that the of update you then sequentially And store driven year. give to we're what's the that costs XX% the cost line advertising, down expect heard want call million savings revenues point about the by in with increase QX currently the other for a full year there. kind the with we're opening expectations, translates year that opposite, opening what's in things. that are BrandsMart. store year. OpEx as million going probably also basis expecting increase. that as full also of XX well X of particularly component the on personnel rate about side, our this XX% are talk increased but bit basis on seeing quarter going cost seeing in grow a to tax full That's new expecting about spread they're of at Aaron's well, is you seeing the to the The EBITDA, the we're course on of that the We're we're an driven a some growth we investment that change of is as there. operating at a is of adjusted about to earnings well in I'm by us there QX consolidated outlined as to XX% XX each associated to the just through business, we're sorry, driving And margin. kind that improvements $XX to million in is where prior we with on the

improvement in EPS, be there, tax XX So for different year. percentage our to increase rate non-GAAP outlook that lead the of the point did will in but each quarter

with I the helps specifically, that modeling you and XXX think QX, QX points all some year. basis more lower will of for same. with QX we're Hopefully, your roughly than expecting QX the that about QX and be

Operator

hand questions. have closing Thank further Douglas currently you. no for will We back remarks. to any I

Douglas Lindsay

joining Thank Thanks delivering continued much. and Woodhaven of service day. your forward and team again of value for thank and next each and Aaron's, to customers our look so you Operator. the for you, you call to every all speaking our Leasing on exceptional BrandsMart, of each focus company to and you BrandsMart today, Thank We members quarter. franchise to

Operator

Thank you. concludes call. Thank today's for This you joining.

your disconnect You may lines. now

The Aaron's Company, Inc. (AAN) 7 May 242024 Q1 Earnings call transcript