RCII - Rent-A-Center stock slumps 17% after hours on guidance cut amid macro headwinds
- Rent-A-Center ( NASDAQ: RCII ) stock slumped ~17% after the bell on Thursday as the rent-to-own firm lowered its Q3 guidance citing macroeconomic headwinds, which impacted retail traffic and customer payment behavior.
- RCII expects Q3 adj. EPS of $0.85-$0.95, missing consensus estimate of $1.16. Its prior outlook was $1.05-$1.25.
- Q3 revenue is projected to be $1B-$1.02B vs. consensus estimate of $1.03B. Its earlier forecast was $1B-$1.055B.
- "External economic conditions continued to deteriorate over the past few months. While recent inflationary conditions have been especially challenging for customers, we remain confident in the longer-term resiliency of the business," said RCII CEO Mitch Fadel.
- RCII is not revising or reaffirming its 2022 guidance.
- The company also appointed Fahmi Karam as EVP - CFO effective Oct. 31.
- Karam will succeed Maureen Short, who left RCII on Sept. 28.
- Karam most recently served as CFO of Santander Consumer USA since Sept. 2019.
- Shares of RCII have fallen over 54% YTD.
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Rent-A-Center stock slumps 17% after hours on guidance cut amid macro headwinds