The Aaron’s Company, Inc. (NYSE:AAN) Q1 2023 Earnings Call Transcript

Kelly Wall: Yes, Joe. It’s Kelly. Thanks for the question, so our outlook or guide right for write-offs for the full-year is unchanged at the 5.5% to 6.5%. I mean we are trending towards the lower end of that now. But just given some of the volatility right we’ve seen over the last four quarters, we’re not ready to, kind of, tighten that range. But certainly based on what we’re seeing in terms of the results in charge offs and write-offs and the 32-plus day non-renewal rates from the management of our lease decisioning over the last several months. More seeing there, we’re increasingly confident in that 5% to 6% range as you move into 2024 and beyond.

Joe Chalhoub: Got it. Great. And then one follow-up on that. If you keep seeing write-offs come in lower than expected, would you decide to then loosen credit standards again? Or is that like off the table for this year?

Douglas Lindsay: Yes, this is Douglas. I would say it’s not off the table, we’re constantly optimizing our lease decisioning. We have a recurring lease committee meeting that we do that in and we’ll continue to assess the current environment and what we’re seeing in the future to make those decisions. So tightening or loosening happens at real time in our business. And so that is not off the table for sure.

Joe Chalhoub: Got it, great. Thanks.

Steve Olsen: Thanks, Joe.

Operator: Thank you. And we have no further questions in the queue today. So it’s my pleasure to hand back to Douglas Lindsay for some closing remarks.

Douglas Lindsay: Thank you, operator. As we wrap up, I just want to reiterate how encouraged I am by our execution to start . Our larger as we said our larger and healthier lease portfolio size combined with lower delinquencies set us up really well for the future. Despite a softer tax season, I’m really pleased with the efforts by the team to consolidate our efforts to integrate BrandsMart in the business and achieve our transaction synergies and I’m excited to open our first store in Augusta, Georgia this year at BrandsMart. So again, I want to thank our team members, our franchisees for a great first quarter and thank you for joining us today. We look forward to speaking with you soon.

Operator: Thank you for joining today, everyone, this concludes the call and you may now disconnect your lines.