Operator: Our next question comes from Vincent Caintic of Stephens.
Vincent Caintic : First one on the components of GMV. So nice to see the sequential improvement in that. And I’m just wondering if you could talk about the components in terms of underlying demand. It sounds like maybe that stabilized is starting to improve but then you talked about tighter underwriting. So maybe that dynamic slows it down a bit, but if you could talk about that. And then on Acima specifically nice to hear the guide for positive GMV in the fourth quarter. Just wondering when I compare that to Rent-A-Center, if that growth in Acima is from same-store sales differences, or if, because you’re adding more merchants that you’re able to offset maybe what might be similar same-store-sales performance between Acima and Rent-A-Center?
Mitchell Fadel : Sure. Vincent, let me start and then Fahmi can weigh in. I’ll take the last part of that first. Yes, I think that is the difference where Acima has growth in merchants, growth in the marketplace and Rent-A-Center does 2 on rentacenter.com, but more growth in the marketplace and just growing the merchants and growth, when you think about it from a same-store-sales standpoint, it’s probably positive and we don’t really look at that way, but just knowing the numbers, I do look at the verticals like auto, the wheel and tire verticals probably on the same-store basis are flat to positive. Of course, furniture’s down, like we’re talking about appliances probably down a little bit as well but I think from a same-store-sales standpoint, it would.
From Acima, it would depend on the vertical. Some would be positive and some wouldn’t be like furniture as I mentioned. But the growth is really — the difference between Acima and Rent-A-Center is we’re adding merchants everyday really. On the Acima front, I mentioned a few good regional winds where it’s adding some GMV and taking market share. I think Rent-A-Center’s probably taking a little market share too when you compare the numbers, but I think Acima adding merchants every day is probably why they’ll hit positive. They’re hitting positive first, even though you see the improvement in both segments, they’ll hit a positive inflection point first, even with the tighter underwriting. And as we mentioned, Vincent, and as you know, when it comes to underwriting, when you say tighter overall, I’d agree with that.
I would say we’re tighter today than were yesterday overall. On the other hand, we do look for pockets performing partners and performing risk bins that you can dig deeper in and take more risk in. So it’s not like a carte blanche, just tighten everything certain people, certain scores, the certain people, what they look like when they come into the decision engine, depending on their scores and other attributes, we dig deeper when we can, so that helps too.
Fahmi Karam : Yes. Vincent, I think the Mitch’s answer for the second part of your question, it really applies to the first part as well, just from a standpoint of demand per location is probably down, but given we’re adding more locations, that’s why I mentioned the applications were up year-over-year. And then as far as the tightening that we mentioned in the prepared remarks, we really isolated it to our legacy Acceptance Now business, you’ve heard us talk a lot about synergies between the 2 major segments. And I think one of the biggest components of that is on the underwriting side and making sure that our underwriting capabilities at Acima, we apply on different parts of the business and the legacy Acceptance Now business rolls into the Acima segment but they are on 2 different underwriting systems today.
We’ve started converting them earlier this quarter and we’ll continue to do that throughout this year and the first part of next year to get the underwriting platforms consistent on the Acima consolidated business segment. And we did have to tighten there. And so you’ve seen that impact in our loss rates this quarter, a little bit, 40 basis points up year-over-year. You’ll see that again in the fourth quarter as you cut revenue before you start seeing the impact on the loss dollars but as soon as that gets converted over, I think you’ll start seeing a trend much more in line with the Acima segment and Acima virtual business.
Mitchell Fadel : Yes, and that’s a tailwind in the next year. Anything about the virtual business being between 6 and 8 and we’ve been more like 9. If you look over the last 4 quarters, 9 and 9.5 because of the legacy business adding into that. So once that legacy business runs through there, certainly the latter half of next year at least, and then you’re at 6 to 8, that’s a nice tailwind for next year.
Operator: Our next question comes from the line of Kyle Joseph with Jefferies.
Kyle Joseph : Thanks for taking my questions. Most of them have been answered, but on Genesis or sorry, Concora, just remind us timing in terms of when you anticipate that needing to flow through our models and how exactly that’s going to flow through the P&L and which segment it flows through and how it impacts and when it should start impacting the consolidated P&L?
Mitchell Fadel : Yes, we’re really excited about the prospects of the partnership. We’re still in test mode and rolling it out in a few stores, but really positive discussions with our both our small and medium-sized businesses as well as our bigger regional players. So the ones that don’t have a second look provider are excited about having a second look provider at their locations for their customers. And the ones that do today really like the benefit of having one vendor that has 2 products. And so really excited about the prospects of it. We’ll look to roll out really in scale beginning of the year in 2024 on both the general-purpose credit card as well as the second look retail private label credit card. We’ll give you more guidance into 2024 probably next quarter, but it will take some time to really ramp up for it to be a material number in the P&L.
