Rent-A-Center Joins The Fray Blaming A Weak Economy For Weak Performance

Rent-A-Center RCII highlighted weaker-than-expected demand along side a miss on earnings. The rental company reported adjusted prelim. Q2 EPS of $0.36-$0.38 compared with the $0.48 consensus. The slowdown in activity isn't a one-off excuse being used soley by Rent-A-Center. Numerous firms have come out this week to comment on the weak American economy, not the weather, being the culprit for slow demand growth. 

Rent-A-Center joins many other companies who have come out to blame the economy for weak demand, weak earnings, cuts in forward guidance, instead of blaming the weather. Bob Evans BOBE, Lumber Liquidators LL, Tractor Supply TSCO, Potbelly PBPB, and The Container Store TCS have come out in the past week to highlight weakening fundamentals causing cuts to Q2 EPS and FY 2014 EPS and Sales numbers.

Rent-A-Center shares fell over 6 percent in after-hours trading on Thursday to $25.62 before rebounding slightly to $26.51.