H&R Block Posts 1Q Loss

According to its quarterly financial reports, tax preparer H&R Block has posted a first-quarter loss that has barely changed from this time a year ago, but that outstripped analyst expectations for the company’s loss. H&R Block blames its results on higher costs and acquisition expenses, both of which managed to displace H&R’s slightly larger revenue for this quarter.
 
Posting a loss in its fiscal first quarter is nothing strange to H&R Block, which typically does not do as well in its first two fiscal quarters than in the second half of the fiscal year because of tax season. However, H&R Block is bracing for what the IRS predicts to be a 1 to 2 percent decline in the number of tax returns filed next year because of the recession’s impact on unemployment and other economic factors.
 
H&R CEO Russ Smyth has responded to the IRS’s prediction, stating that it hopes to remain strong by revamping its marketing practices and changing around its retail tax business to attract and keep more customers. He also pointed to the fact that economic recovery will bring more complicated tax procedures for many people, which will force them to find tax preparation assistance. 
 

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