Easyhome Furniture, Appliance Leasing Continues to Shrink

Easyhome, this country’s largest and only publicly held lease-to-own home furnishing merchant, saw continued erosion in its core business for the third quarter of 2023, even as parent company Goeasy reported rocket-fuelled upticks in both revenue and earnings.

For the three months ending Sept. 30, Goeasy reported revenue of $321.7 million, up 22.7 per cent from $262.2 million for the same period in 2022.

Almost 90 per cent of that was generated by its Easyfinancial segment — or $283.6 million, which was up 26.1 per cent from the prior year’s $224.9 million. Indeed, at the end of September, Canadian consumers owed the company more than $3.4 billion in both secured and unsecured loans.

Revenue generated by its Easyhome segment totalled $38.1 million for the quarter, up 2.2 per cent from last year’s $37.3 million.

However, a closer look reveals revenue generated by its merchandise leasing business — furniture, appliances and other electronics, including computers — fell 3.3 per cent to $24.5 million, from $25.4 million. The balance came from Easyhome’s sales of ancillary products and interest income from its own portfolio of loans.

Merchandising leasing’s share of Goeasy’s overall revenue fell to 7.6 per cent from 9.6 per cent in Q3 2023.

However, Goeasy’s net income for the period was $66.3 million or $3.87 per diluted share, compared to $47.2 million or $2.86 per diluted share — an uptick of 35.3 per cent on a per share basis.

For the nine months also ending Sept. 30, Goeasy’s total revenue was $912 million, up 22.2 per cent from $746 million for the same period last year.

Net income was $173.3 million or $10.14 per diluted share, compared to $111.6 million or $6.71 per diluted share, a leap of 51.1 per cent on a per share basis.

Easyhome contributed $114.6 million to Goeasy’s top line revenue during Q1-Q3, up from the comparable period’s $112.4 million in 2022.

However, revenue from merchandise leasing fell 3.9 percent to $75.2 million from last year’s $78.2 million.

The company reported that at the end of September, it had a total of 68,987 lease agreements in force, each generating average monthly payments of $107.43. This compares to last year’s 72,764 lease agreements generating average monthly payments of $104.76.

By product category, furniture represented 42.6 per cent of leasing revenue, slightly higher for the comparable 2022 period. Electronics, mostly televisions and home entertainment systems, accounted for 31.9 per cent of revenue, down slightly year-over-year. Appliances and computers comprised the balance.

At the end of September 2023, there were a total of 144 Easyhome stores across the country, including 34 franchise units. Goeasy also operated 300 Easyfinancial locations.

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