Rent-A-Center sees Q3 EPS 5c-15c, consensus 39c
Rent-A-Center pre-released selected preliminary unaudited financial information for the quarter ended September 30. The company estimates Core U.S. same store sales for the three months ended September 30 to be down approximately 12%, and Acceptance Now same store sales to be essentially flat. Core U.S. gross profit, as a percent of total revenue, is estimated to be flat compared to the third quarter of last year as ongoing benefits from the changes made to the company's sourcing model were offset by a third-quarter clearance event focused on previously-rented product. Diluted earnings per share for the third quarter 2016 on both a GAAP basis and excluding special items are expected to be between 5c-15c. "Following the implementation of our new point-of-sale system, we experienced system performance issues and outages that resulted in a larger than expected negative impact on Core sales. While we expect it to take several quarters to fully recover from the impact to the Core portfolio, system performance has improved dramatically and we have started to see early indicators of collections improvement," said Robert D. Davis, Chief Executive Officer of Rent-A-Center.