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Rent-A-Center Profit Doubles

PLANO, TX-New and acquired stores along with a 3.6% increase in same-store sales helped Rent-A-Center more than double its profits.

By Beverly Ford | Updated on November 01, 2006

PLANO, TX-Revenue from new and acquired stores and a 3.6% increase in same-store sales helped drive up profits for rent-to-own retailer Rent-A-Center with net income reaching $25.2 million, or 36 cents a share, a more than two-fold increase from the $11.3 million, or 15 cents a share, earned during the third quarter of 2005.

The nation’s largest rent-to-own company, which operates 2,751 locations, said profits were helped by the third quarter addition of nine new stores, 10 acquired stores and the purchase of accounts from 15 other locations.

Overall sales for the quarter ended Sept. 30 rose slightly by 2.4% to $587.2 million from $573.5 million in the year ago period, but sales at stores open at least a year were up 3.6%. The company said the higher comparable store sales helped offset the loss from stores that were closed or sold in 2005, including stores affected by hurricanes Rita and Katrina.

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