FirstCash Says Full-year Retail Sales To Be Down Below 10% - Quick Facts

(RTTNews) - While reporting financial results for the third quarter on Wednesday, retail pawn stores operator FirstCash, Inc. (FCFS) said it has not reinstated earnings guidance for the balance of the year, given the ongoing uncertainties regarding the pace of the recovery in pawn receivables and inventories and ongoing currency volatility.

The company had withdrawn its previous earnings guidance in April, due to the uncertainty around COVID-19 and the associated volatility of the Mexican peso.

Looking ahead, the company said it expects a smaller percentage decline in pawn fees in the fourth quarter as compared to the third quarter, based on the currently improving growth trends for pawn receivables. Fourth quarter sales will be impacted by lower inventory levels compared to the prior year. Despite the effects of the pandemic and currency volatility, full-year retail sales for 2020 are still expected to be down less than 10% to the prior year.

Additionally, the company's Board of Directors declared a quarterly cash dividend of $0.27 per share, payable on November 27, 2020 to stockholders of record as of November 13, 2020.

Effective October 20, 2020, the Company also lifted the temporary suspension of its share repurchase program put in place in April at the onset of the COVID-19 pandemic.

Further, the company plans to limit the number of openings to a total of 70 to 75 new full-service pawn stores in 2020. The Company typically limits the number of fourth quarter openings in order to minimize operational distractions in the holiday sales season.