Aaron’s, Inc. (NYSE:AAN) Slips Pre-Bell on Cut to Q2 Guidance; Company to Close 44 Underperforming Stores in Q3

Aaron’s, Inc. (NYSE:AAN) shares declined in Tuesday’s pre-market session, after the retailer of residential furniture, consumer electronics and home appliances cut its Q2 guidance to below analysts’ views, citing weaker-than-expected results in its core business. AAN was down 5.6% at $31.64 in recent pre-market trading, in a 52-week range of $26.18 to $36.74.

The company lowered its forecast for Q2 adjusted EPS to a range of $0.34 to $0.37, from its previous forecast of $0.43 to $0.48, citing “lower-than-expected performance of its core business.” On average, analysts polled by Capital IQ recently were expecting a profit of $0.46 per share.

Aaron’s cut its Q2 revenue view to $672 million, slightly below its previous guidance of $675 million, which it said came as Progressive’s strong revenue growth was offset by revenue declines in its core business. The latest Street view had been $678 million.

“We are extremely pleased with the performance of our recently acquired Progressive business, which will exceed expectations in the second quarter in both revenues and earnings,” said CEO Ronald W. Allen. “With that said, we are disappointed with our core business results and are taking aggressive action to respond to the challenging economic environment and the evolving industry in which we operate.”

The company noted it is undergoing a number of cost-cutting moves, including a “rigorous evaluation of the company-operated store portfolio,” which it said would result in the closure of 44 underperforming stores in Q3.