Aaron's gross profit declined 8.7% to $271.9 million and the gross margin expanded 520 basis points (bps) to 53.2%. The operating loss was $3.5 million compared with the prior-year quarter's operating loss of $17.1 million. Adjusted EBITDA declined 34% year over year to $25.3 million due to lower lease revenues and fees at the Aaron's business, and weak retail sales at BrandsMart, partly offset by reduced personnel costs and lower write-offs at the Aaron's business. The adjusted EBITDA margin contracted 160 bps to 4.8% compared with our estimate of 5.1%.