Rent-A-Center (RCII) June Core Comps Decline 7.7%

Rent-A-Center, Inc. (NASDAQ/NGS: RCII) today announced the following preliminary key operating metrics for its Core U.S. and Acceptance NOW (“ANow”) businesses for June 2017:

Core U.S.

• Same Store Sales: (7.7%)
• Delinquencies: 7.1%, 60 basis points unfavorable versus prior month
• Average Monthly Rate of New Agreements: 5.7% favorable versus prior year
• Co-worker Turnover: 86.1% and 19.5 percentage points favorable versus prior year

Acceptance NOW

• Same Store Sales: 8.6%
• Delinquencies: 8.1%, 90 basis points unfavorable versus prior month

In the Core U.S. segment, June same store sales improved sequentially as the initiatives put in place continue to make a positive impact on the size and quality of the rental portfolio. Delinquencies, which were favorable by 410 basis points versus prior year, were higher sequentially primarily due to seasonality. In addition, while there were some calendar differences on a monthly basis throughout the quarter versus prior year, second quarter 2017 same stores sales were approximately 350 basis points ahead of the low point in fourth quarter 2016.

Looking ahead, the Company’s new assortment strategy of providing access to aspirational products will continue to build, given the average product stays in the system for over eighteen months. For example, in the second quarter the Company’s inventory purchases were comprised of over 65 percent aspirational products but only half of the sales made in second quarter 2017 were aspirational products. Both of these data points were well ahead of prior quarters. The Company is also leveraging its more stable workforce to improve the customer experience through a new mystery shopper program that will provide the sales force feedback on in store, web and phone based customer interactions. In addition to this pointed feedback, detailed training is being integrated into the tool to further improve on those opportunities.

In Acceptance NOW, same store sales remain higher than last year due to a larger portfolio in those respective locations. The growth of the portfolio is being aided by a younger, still maturing store base and stronger average ticket driven by actions taken to optimize the value proposition. As a reminder, the same store sales store base is comprised of only about 40% of Acceptance NOW locations due to the recent Conn’s and HH Gregg closures. Delinquencies were unfavorable month over month primarily due to the higher seasonality and the transferred agreements from closed stores.

Metric Definitions

Core U.S.

• Same Store Sales - year over year revenue performance on comparable stores
• Delinquencies - percent of customer agreements greater than 7 days past due
• Average Monthly Rate of New Agreements - average monthly rental rate for agreements originated in the period
• Co-worker Turnover - annualized year to date store co-worker turnover

Acceptance NOW

• Same Store Sales - year over year revenue performance on comparable stores
• Delinquencies - percent of customer agreements, in staffed locations, greater than 32 days past due

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