BrandsMart saw its gross profit margin improve in the third quarter of F23 despite swinging to a loss as its parent and lease-to-own furniture and electronics provider The Aaron’s Company streamlines its business.

BrandsMart booked a gross profit margin of 22.9 per cent in the three months to September 30, 2023, up 50 basis points from the same period last year.

This is despite BrandsMart swinging to a pre-tax loss of $2.4 million while its revenue declined 16.9 per cent to $152.4 million as comparable sales fell 17 per cent due to ongoing weaker customer traffic and customer trade.

E-commerce product sales shared 8.9 per cent of total product sales, down from 9.3 per cent in the year-ago period. Gross profit margin inched 50 basis points higher to 22.9 per cent.

The Aaron Company opened a new BrandsMart store during the quarter, the first since it acquired the discount retailer last year.

The Aaron’s Company witnessed its net loss narrow to $4.1 million and revenue dropped 11.4 per cent to $525.7 million. Revenue of its flagship Aaron’s Business declined 8.9 per cent to $376.2 million.

“The Aaron’s Business segment is benefiting from our lease decisioning enhancements, which led to lower write-offs and a larger-than-expected lease portfolio size, despite ongoing challenges in customer demand,” said Douglas Lindsay, CEO at The Aaron’s Company.

“During the quarter, we opened three Aaron’s stores in new markets and … we remain focused on positioning both businesses for growth.”