Rent-A-Center Slashes Q3 Earnings Outlook Citing Macro Conditions; Names New CFO

Rent-A-Center Slashes Q3 Earnings Outlook Citing Macro Conditions; Names New CFO
  • Rent-A-Center Inc RCII has appointed Fahmi Karam as its Executive Vice President and Chief Financial Officer effective October 31, 2022. 
  • The company also said the current Executive Vice President and Chief Financial Officer, Maureen Short, departed on September 28, 2022.
  • Karam joins RCII from Santander Consumer USA, where he served as the CFO.
  • He received his Bachelor's degree and Master of Accounting from Baylor University, and he is a Certified Public Accountant.
  • Outlook: Rent-A-Center revised its Q3 sales guidance to $1 billion - $1.02 billion from $1 billion - $1.055 billion versus the consensus of $1.03 billion.
  • RCII slashed its Q3 EPS outlook to $0.85 - $0.95 from $1.05 - $1.25 against the consensus of $1.14.
  • "External economic conditions have continued to deteriorate over the past few months," said CEO Mitch Fadel.
  • Meanwhile, the company is not updating or reaffirming its previously reported consolidated guidance for the full year 2022.
  • Price Action: RCII shares closed lower by 20.3% at $17.80 during after-hours on Thursday.

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