During the company's Q1, which ended March 31, same-store sales dropped 5% from the same period a year ago. Executives lowered their guidance for the current quarter from between flat sales to a 2% drop, to a 1% to 3% fall. But they predict that comparable sales will inch up by the end of the year.
Higher gas prices are the main culprit for the retailer's consumers' woes, Speese said. The company is, among other things, changing its advertising strategy to battle the downturn. Instead of using one agency, the retailer will use different firms for separate parts of an ad campaign.
During the quarter, Rent-A-Center closed 22 stores, opened 10 and acquired three. Executives say they expect to open between 70 and 80 new units this year. The retailer operates 2,866 stores in the US, Canada and Puerto Rico.
Revenues over Rent-A-Center's Q1 increased by $16.5 million, to $601.9 million from the same period in the prior year. Earnings, at $42.7 million, dropped 11%.
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