Rainbow Rentals reports lower quarterly earnings and sales

CANFIELD -- Rainbow Rentals posted lower quarterly earnings and sales at stores open at least a year.
The Canfield-based rent-to-own company earned $401,000, or 7 cents a share, in the first quarter, compared with $529,000, or 9 cents a share, in the same quarter a year earlier.
Earnings declined because of higher corporate expenses related to training, higher costs connected with 11 stores opened in the past year and the cost of closing two stores in January, the company said.
Wayland Russell, company chairman and chief executive, said these measures reduced earnings by 2 cents a share but will make the company stronger for the future.
Revenue for the first quarter was $25.7 million, up from $25 million in the same quarter last year. At stores open at least a year, however, revenue was down 1.4 percent.
Russell said sales trends indicate that the company will have positive sales growth the rest of the year at stores open at least a year.
Rainbow Rentals operates 119 stores in 13 states.