RAC Q2 Revenue Fell 10.3% on ‘Challenging Macro Environment’
Though Rent-A-Center’s Q2 trends were down compared with the “stimulus-enhanced” 2021 results, “we are encouraged by the performance of the business in the second quarter, given the very different and more challenging macro environment we're experiencing this year,” said CEO…
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Mitch Fadel on an earnings call Thursday. Q2 revenue declined 10.3% to $1.1 billion, slightly above the high end of RAC’s May 4 guidance range, RAC said. “While we executed well in the areas of the business that we could control, external factors like inflation and economic growth and discretionary income worsened during the first half of the year,” said Fadel. As Q2 progressed, “we began to see indications that macro-weakness causing lease volumes and payment behavior to trend below our assumptions for the second half of the year,” he said. Lease-to-own historically “has demonstrated countercyclical attributes, maintaining better top-line and loss-rate trends during economic downturns” than more conventional retailers, he said.