Here's Why Aaron's (AAN) Stock is Up 36.8% in Past 3 Months

Core Insights - Aaron's Company, Inc. (AAN) is experiencing growth driven by its strategic initiatives, particularly in e-commerce, which has seen a 20.8% year-over-year revenue increase from leases initiated on Aarons.com [4] - The company has signed a deal to be acquired by IQVentures Holdings, LLC for $10.10 per share, totaling an enterprise value of $504 million, with the transaction expected to close by the end of 2024 [2] - The GenNext stores have significantly contributed to the company's performance, accounting for over 33% of lease revenues and retail sales [1] E-commerce and Business Strategy - Aaron's is expanding its e-commerce business through an omnichannel lease decisioning and customer acquisition program, which has led to higher conversion rates and improved lease portfolio size [3] - Investments in digital marketing, enhanced shopping experiences, and express delivery options have bolstered e-commerce revenues, with recurring revenues from e-commerce increasing by 94.1% year-over-year [4] - The company has opened 11 new GenNext stores, bringing the total to 265, which has positively impacted its financial performance [5] Financial Performance and Challenges - Despite the growth in e-commerce, Aaron's faces challenges such as sluggish demand for discretionary products and increased operating costs related to advertising and lease merchandise write-offs [6] - The company's shares have risen by 36.8% over the past three months, outperforming the industry average growth of 5.5% [1] - AAN's VGM Score of B indicates a solid position within its sector, although it currently holds a Zacks Rank of 3 (Hold) [1]