Rent-A-Center, Inc. (NASDAQ:$RCII) has recently faced scrutiny from savvy analysts who see dwindling revenues as a sign of a downturn. Despite this, however, the company has responded with a three-pillar strategy back in April that they plan to implement to quickly recover.
The strategy involves three main focuses;
- Strengthen the core of the company
- Optimize their Acceptance NOW segment
- Embrace Technological Expansion.
Rent-A-Center is a rent-to-own chain that operates across North America and provides consumers the opportunity to buy products under a rental-purchase agreement. Their products include a wide range that includes electronics, appliances, smartphones, and furniture.
Despite the ambitions, though, investors have failed to see the company make a turnaround. In the second quarter, the company reported a decline in revenue of 9% compared to the same quarter last year. They also reported a Net Loss overall. Their EPS also failed to hit the mark, at $0.07 lower than consensus estimates. Worse, despite revenues of $11.83 million, same-store sales continued a downward trend. There was also a further reduction of total store count.
RCII hasn’t had a very impressive quarter, and it’s causing potential investors to second guess the rent-to-own company. However, some analysts are advising the company’s high-yielding bond as a better way to go.
The company currently has a Market cap of $578.33 million with a 52 week high of $13.89 and a low of $7.76. There are currently 53.30 million outstanding shares. The company does boast, however, a 0.68 beta, indicating it is not at risk of a sudden and unexpected change to its stock.
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