Aaron's Rips It in Q1
Rent-to-own furniture, electronics and appliance retailer Aaron's (NYSE: AAN) reported record first-quarter sales and earnings.
For the three months ended March 31, revenue rose 10 percent to $586.9 million, net income was up 60 percent to $71.2 million, and same-store sales rose 4.8 percent, compared with the first-quarter 2011.
First-quarter 2012 earnings included a $35.5 million reversal of accrued lawsuit expense. During the period, Atlanta-based Aaron's settled a lawsuit with a former Aaron's associate who claimed she was sexually harassed by a former co-worker in 2006. The company recorded a charge of $36.5 million in the second quarter of 2011, which represented an accrual for the judgment and associated legal fees and expenses of $41.5 million, less insurance coverage of $5 million. The company's final settlement related to this matter was $6 million, and accordingly, the Company recognized $35.5 million of income in the first quarter of 2012 operating results.