Rent-A-Center slumps after Q3 forecast cut

Upbound

30/09/2022 11:46

** Rent-A-Center Inc  RCII.O  slumps 16.3% to $18.69 in
light vols. premarket; among top pct decliners across U.S.
exchanges
    ** Rent-to-own furniture retailer set for lowest level since
May 2020, if losses hold
    ** RCII cuts Q3 forecasts for revenue, adj. EBITDA and adj.
profit, citing deteriorating market conditions affecting both
retail traffic and customer payment behavior  urn:newsml:reuters.com:*:nL4N31042G
    ** Also appoints Fahmi Karam as CFO effective Oct. 31; Karam
will replace Maureen Short who left on Wednesday
    ** Co will provide 2022 guidance update during its Q3 call
    ** BofA Global Research ("buy") cuts PT to $30 from $37,
noting this is RCII's second guidance cut and second executive
departure this year
    ** Broker adds that RCII's market stabilization is happening
slower than broker had expected
    ** Stock has fallen 53.5% YTD through Thursday's close
 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))