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AT Home (HOME) Announces Preliminary Fiscal Q3 Results
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At Home Group Inc. unveiled preliminary results for the third quarter of fiscal 2021 (ended Oct 24, 2020). A noticeable gain in market share and the successful execution of At Home 2.0 strategies helped the company to post solid results.
Preliminary Q3 Numbers
At Home announced preliminary net sales of $470 million for the quarter, depicting 47% year-over-year growth. Its comparable store sales or comps growth was 44% for the quarter versus down 2% in the year-ago period. In the fiscal second quarter of 2021, compass growth was 42.3%.
The company has been gaining broad-based strength across all geographies and categories. Its everyday and seasonal businesses performed exceptionally well during the fiscal third quarter. At Home highlighted that everyday comps were above the company average, with significant growth in wall decor, textiles, accent decor, kitchen and entertaining, as well as home organization.
Also, At Home 2.0 initiatives (as discussed at the beginning of September) that comprise EDLP Plus campaigns, reinventions, loyalty growth and omnichannel offerings have been gaining strength.
Within the insider perks loyalty program, it added 2.4 million members in the third quarter alone, which resulted in year-over-year growth of 42%. The company now has 8.3 million members in the program.
From a macro point of view, consumers continue to spend more time at home, and it expects to remain a beneficiary of this nesting trend over the medium term. Furthermore, the emerging de-urbanization or dedensification trend prompted by the COVID-19 outbreak has the potential to be a long-term tailwind for the company, given the concentration of stores in suburban and off-mall locations.
Overall, it expects fiscal third-quarter GAAP EPS within 58-62 cents, including a 4 cents impact of debt refinancing costs. The company expects to earn more in the fiscal third quarter than fiscal 2020, when it generated pro-forma adjusted EPS of 57 cents. Notably, the company reported breakeven adjusted earnings for third-quarter fiscal 2020. It also anticipates lowest leverage ratio since the initial public offering.
At Home’s have gained 190.9% so far this year compared with the Zacks Retail - Home Furnishings Industry and Zacks Retail-Wholesale sector’s 18.8% and 33.1% rally, respectively. The recent rally can primarily be attributed to reopening of the economy and housing market rebound. Also, expansion of the retail business, reinvention of assortments, optimization of marketing strategies and improvement of e-commerce channels contributed to the growth.
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The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
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AT Home (HOME) Announces Preliminary Fiscal Q3 Results
At Home Group Inc. unveiled preliminary results for the third quarter of fiscal 2021 (ended Oct 24, 2020). A noticeable gain in market share and the successful execution of At Home 2.0 strategies helped the company to post solid results.
Preliminary Q3 Numbers
At Home announced preliminary net sales of $470 million for the quarter, depicting 47% year-over-year growth. Its comparable store sales or comps growth was 44% for the quarter versus down 2% in the year-ago period. In the fiscal second quarter of 2021, compass growth was 42.3%.
The company has been gaining broad-based strength across all geographies and categories. Its everyday and seasonal businesses performed exceptionally well during the fiscal third quarter. At Home highlighted that everyday comps were above the company average, with significant growth in wall decor, textiles, accent decor, kitchen and entertaining, as well as home organization.
Also, At Home 2.0 initiatives (as discussed at the beginning of September) that comprise EDLP Plus campaigns, reinventions, loyalty growth and omnichannel offerings have been gaining strength.
Within the insider perks loyalty program, it added 2.4 million members in the third quarter alone, which resulted in year-over-year growth of 42%. The company now has 8.3 million members in the program.
From a macro point of view, consumers continue to spend more time at home, and it expects to remain a beneficiary of this nesting trend over the medium term. Furthermore, the emerging de-urbanization or dedensification trend prompted by the COVID-19 outbreak has the potential to be a long-term tailwind for the company, given the concentration of stores in suburban and off-mall locations.
Overall, it expects fiscal third-quarter GAAP EPS within 58-62 cents, including a 4 cents impact of debt refinancing costs. The company expects to earn more in the fiscal third quarter than fiscal 2020, when it generated pro-forma adjusted EPS of 57 cents. Notably, the company reported breakeven adjusted earnings for third-quarter fiscal 2020. It also anticipates lowest leverage ratio since the initial public offering.
At Home’s have gained 190.9% so far this year compared with the Zacks Retail - Home Furnishings Industry and Zacks Retail-Wholesale sector’s 18.8% and 33.1% rally, respectively. The recent rally can primarily be attributed to reopening of the economy and housing market rebound. Also, expansion of the retail business, reinvention of assortments, optimization of marketing strategies and improvement of e-commerce channels contributed to the growth.
At Home — which shares space in the industry with RH (RH - Free Report) , Williams-Sonoma, Inc. (WSM - Free Report) and Ethan Allen Interiors Inc. (ETH) — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>