Aaron's Overview

(NAIC Rated: Investment Grade 2)

Aaron’s, Inc. is a predominant retailer of appliances, furniture, and other accessories through lease-to-own, general leasing, and consumer sales. As of 2016, the company has 11,500 employees and over 1,860 Company-operated and franchised locations in 47 states and Canada as well as an e-commerce platform introduced in 2015. Total revenue was up from $3.2 billion in 2016 to $3.38 billion in 2017, an increase of nearly 5.5%.

Key Financials (2017)

Total Revenue:$3.38 billion
Year-Over-Year Revenue Growth:5.49%
Gross Profit:$3.12 billion
Net Income:$292.5 million

Company Information

The Aaron's logo, a rated credit tenant in 1031Gateway's 1031 Exchange Investing Articles

Advantageous for lower-middle-income customers, a lease-to-own agreement is structured by weekly or monthly payments over a year or two. Interested customers may want to trial a product, only need it for a short time, not want to accrue additional debt, or not be eligible for typical financing. This flexibility is offered because leasing-to-own is not considered a credit installment contract. Thus, the customer is not committed to purchasing the merchandise and may buy or return the product at any time.

In 2014, Aaron's acquired the virtual lease-to-own company, Progressive Finance Holdings, LLC ("Progressive Leasing") of which there are now 19,000 Aaron's-owned retail locations in 46 states. Through virtual lease-to-own, the Aaron's.com e-commerice platform, and broad product selection at lower costs, Aaron's has distiniguished itself, financially and strategically. The company believes the market for rent-to-own retailers will grow over time as small-box consumer-goods retailers are reduced.

Further Resources

  Company Site | Investor News & Annual Reports | NYSE: AAN

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