At Home Group stocks up after preliminary 2Q results
PLANO, Texas — Shares of At Home Group Inc., the home décor superstore, are trading higher this morning after the company posted net sales of approximately $515 million for the second quarter, which ended on July 25, 2020, up 51% from the second quarter of fiscal 2020.
The company also posted a comparable store sales increase of approximately 42% for this second quarter of fiscal 2021.
“We are emerging from this pandemic stronger and even better positioned, and we believe we are gaining meaningful market share,” said Lee Bird, At Home Group chairman and CEO. “We are becoming the go-to place for consumers looking for a one-stop shop that offers a wide and deep assortment, compelling everyday low prices, the convenience of omnichannel shopping and safe social distancing afforded by our large store format.”
Bird said the company’s business continued to be strong following the initial re-opening period in early May that was likely impacted by pent-up demand and stimulus spending. “Our momentum continued despite competitor re-openings, liquidations and a resurgence in coronavirus cases in certain markets,” he added. “We expect to report the best quarter in our history as a public company in terms of comparable store sales, sales, and profitability, and the lowest leverage ratio.”
Other preliminary numbers include net income of at least $82 million and an adjusted EBITDA of at least $150 million.The company temporarily closed all 219 of its stores in March due to the pandemic but began re-opening stores in early May. Bird said the company has launched curbside pickup capabilities and expanded the company’s buy-online-pick-up-in-store offering to more than 95% of all stores. The company also expanded its partnership with national delivery service Pickup to offer contactless, next-day local delivery starting at $10.
On the conference call with investors, Bird said he believes they are benefiting from a combination of factors, including consumers spending more time at home; the breadth and depth of products offered by At Home Group; the safe social distancing made possible by the company’s large store format; and the successful execution and combination of low prices, omnichannel offerings and customer loyalty.
“In the next few days, we expect to expand delivery in an additional 40 stores,” Bird said on the call. “This will allow us to offer the service in more than 70% of our stores, up from 50% of our stores just six weeks ago. Our loyalty program, Insider Perks, has maintained its rapid growth and now has $7.5 million members, up an impressive $2.3 million or 45% year-over-year.”
The company has also brought back all furloughed employees and restored salaries to pre-COVID levels.
“We’ve actually had to; because of these record sales we also have to add employees,” Bird said on the call. “When you’re up 40% comps and 50% total revenue growth and you see that momentum all the way through July, you need as much help as you can, but it’s a lean team.”