Alessandra Jimenez's questions to PROG Holdings Inc (PRG) leadership • Q4 2024
Question
Alessandra Jimenez of Raymond James, on behalf of Bobby Griffin, requested further details on the 2025 revenue guidance, specifically quantifying the top-line drag from the Big Lots bankruptcy and inquiring about shifts in customer behavior.
Answer
President and CEO Steven Michaels explained that the Big Lots bankruptcy created a significant GMV hole, estimating an annualized impact of $135 million to $150 million, which was an unexpected development. Michaels also confirmed that the company is observing stress among customers at the lower end of its portfolio and that new customer cohorts, while positive for growth, are harder to underwrite and are contributing to slightly higher delinquencies.