July 21 Rent-to-own home furniture retailer
Rent-A-Center Inc cut its full-year forecast for
revenue and profit, saying it expected demand to remain weak,
sending its shares down as much as 2 percent in extended trade.
The company also reported a 58 percent drop in
second-quarter profit due partly to a rise in operating and
The company had earlier this month said its results for the
latest quarter would be hurt by weaker demand in the United
States as macro-economic pressures weigh.
Stagnant wage growth and rising taxes are forcing consumers
to keep a lid on discretionary spending. Rival Pier 1 Imports
Inc reported lower-than-expected profit for the quarter
ended May 31 and cut its full-year profit outlook last month.
Other specialty retailers such as Elfa shelving systems
maker Container Store Group Inc also reported weak
second-quarter results this month and reduced its full-year
Rent-A-Center said it now expects earnings of $2-$2.15 per
share on revenue growth of 2.5-4 percent for 2014.
It had previously forecast earnings of $2.30-$2.50 per share
on revenue growth of 3-6 percent.
Shares of the company were trading at $23.50. They closed at
$23.98 on the Nasdaq on Monday.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by
Joyjeet Das and Anil D'Silva)