Rent-A-Center spins lower after soft Q4
Seeking Alpha
Published Feb 21, 2018 08:18AM ET
Rent-A-Center spins lower after soft Q4
- Shares of Rent-A-Center (NASDAQ:RCII) fall sharply after Q4 results arrive short of expectations.
- Comparable sales fell 2% during the quarter to miss the consensus estimate for a 1.5% increase. Total sales were down 6.6% Y/Y to $639M.
- CEO update: "In order to improve company performance, we are focusing our attention on reducing costs and improving cash flow. We also intend to improve traffic trends through a more targeted value proposition and customer centric approach. In addition, we have also initiated efforts to more aggressively expand our franchising operations in order to enhance our brand in a more capital-efficient way."
- Looking at cutting costs, the company says it has identified annualized cost savings opportunities of $65M to $85M, approximately two thirds of which is expected to be realized in 2018.
- Previously: Rent-A-Center misses by $0.34, misses on revenue (Feb. 20)
- RCII -15.45% AH to $7.55.
- Now read: Aircastle: Stellar Q4 Results And A Continued Shift To Narrow-Bodies
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