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AT Home (HOME) Announces Preliminary Fiscal Q3 Results

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At Home Group Inc. (HOME - Free Report) 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 - Free Report) — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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At Home Group Inc. (HOME) - free report >>