The real estate sales market may not be doing well this year in Buckhead and elsewhere, but Buckhead-based lease-to-own home furnishings retailer Aaron’s Inc. has again reported a rise in revenues for the third quarter of 7 percent to $415.3 million.
Aaron’s third quarter profit rose 24 percent to $24.7 million, for earnings per share of 45 cents. That’s compared to $19.8 million in profit, or 37 cents per share, for the third quarter last year.
Those results are evidence that the chain appeals to consumers—weighted toward renters—during an economic downturn, but president and CEO Robin Loudermilk Jr. emphasizes that Aaron’s also does fine during better economic times.
Another indication is bucking the trend in this recession is that the company increasing its sports marketing budget by 10 percent—about $1 million a year—at a time when other major companies are dropping sports sponsorships and slashing their sports marketing budgets.
Aaron’s recently signed marketing deals with the University of Alabama, NASCAR and Philips Arena, home of the Atlanta Hawks and Thrashers.
Consumers don’t need credit to purchase TVs, sofas or other household items at Aaron’s. Purchase prices may be higher than at other retail outlets, although many items can be purchased for $99 per month. Failure to pay can result in repossession. However, if customers pay on time and in full, they own the items.