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Conn's Inks Deal with Progressive to Augment Credit Sales
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Conn's, Inc. (CONN - Free Report) recently inked a deal with Aaron's, Inc.’s (AAN - Free Report) subsidiary – Progressive Leasing, per which the latter will offer lease-to-own payment solutions to those customers who are not eligible for Conn’s proprietary credit offering.
Conn’s is a renowned specialty retailer of furniture and mattresses; home appliances; consumer electronics and home office products, and is also a provider of consumer credit solutions. Progressive Leasing forms a significant segment of Aaron’s, which is an omnichannel provider of lease-purchase solutions.
The three-year exclusive partnership with Progressive Leasing is a result of Conns’ review of its third-party lease-to-own strategy. The company had commenced this review back in the summer of 2016, in a drive to boost its sales. In this regard, Conn’s turned down the option of renewing its one-year exclusive deal with Acceptance Now and thereafter terminated the latter’s services in various Conn’s locations.
The motive behind these actions was to test other lease-to-own alternatives, which in turn culminated into Conn’s aforementioned deal with Progressive. After a full-fledged review, Conn’s chose Progressive, as it is most likely to benefit from Progressive’s growth-oriented culture, solid balance sheet and efficient decision-making capacity.
Given this credibility, Progressive is deemed to be a superb partner for Conn’s, thus helping it revive its in-house credit space, which witnessed a 5.2% drop in revenues in the last reported quarter. The company has seen its stock price plunge 36.4% over the last three months, as against the Zacks categorized Retail – Consumer Electronics industry’s rise of 9.4%.
On the other hand, Progressive contributed $324.0 million to Aaron's revenues in the last reported quarter, marking a 17.3% year-over-year surge. Thus, the company believes that partnership with Progressive is likely to take it closer to its goal of augmenting its lease-to-own revenues.
Conn’s anticipates having Progressive’s services in select stores from May 2017, with the complete rollout expected in the beginning of June.
Best Buy has delivered positive earnings surprise consistently in the last four quarters. The stock has a long-term growth rate of 9.7%.
Children's Place has an average positive earnings surprise of 39% in the trailing four quarters. The stock has a long-term growth rate of 8%.
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Conn's Inks Deal with Progressive to Augment Credit Sales
Conn's, Inc. (CONN - Free Report) recently inked a deal with Aaron's, Inc.’s (AAN - Free Report) subsidiary – Progressive Leasing, per which the latter will offer lease-to-own payment solutions to those customers who are not eligible for Conn’s proprietary credit offering.
Conn’s is a renowned specialty retailer of furniture and mattresses; home appliances; consumer electronics and home office products, and is also a provider of consumer credit solutions. Progressive Leasing forms a significant segment of Aaron’s, which is an omnichannel provider of lease-purchase solutions.
The three-year exclusive partnership with Progressive Leasing is a result of Conns’ review of its third-party lease-to-own strategy. The company had commenced this review back in the summer of 2016, in a drive to boost its sales. In this regard, Conn’s turned down the option of renewing its one-year exclusive deal with Acceptance Now and thereafter terminated the latter’s services in various Conn’s locations.
The motive behind these actions was to test other lease-to-own alternatives, which in turn culminated into Conn’s aforementioned deal with Progressive. After a full-fledged review, Conn’s chose Progressive, as it is most likely to benefit from Progressive’s growth-oriented culture, solid balance sheet and efficient decision-making capacity.
Given this credibility, Progressive is deemed to be a superb partner for Conn’s, thus helping it revive its in-house credit space, which witnessed a 5.2% drop in revenues in the last reported quarter. The company has seen its stock price plunge 36.4% over the last three months, as against the Zacks categorized Retail – Consumer Electronics industry’s rise of 9.4%.
On the other hand, Progressive contributed $324.0 million to Aaron's revenues in the last reported quarter, marking a 17.3% year-over-year surge. Thus, the company believes that partnership with Progressive is likely to take it closer to its goal of augmenting its lease-to-own revenues.
Conn’s anticipates having Progressive’s services in select stores from May 2017, with the complete rollout expected in the beginning of June.
Zacks Rank & Key Picks
Conn’s currently carries a Zacks Rank #3 (Hold).
Better-ranked retail stocks include Best Buy Co., Inc. (BBY - Free Report) and The Children's Place, Inc. (PLCE - Free Report) , sporting a Zacks Rank #1 (Strong Buy) each. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Best Buy has delivered positive earnings surprise consistently in the last four quarters. The stock has a long-term growth rate of 9.7%.
Children's Place has an average positive earnings surprise of 39% in the trailing four quarters. The stock has a long-term growth rate of 8%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>