At Home (HOME) Opens Three New Stores, Expands Footprint
In order to fortify store expansion spree,
At Home Group Inc. HOME opened three new stores in
February 2019, boosting its presence in the Midwest region. These
stores are located at 101 Randall Rd. in Lake in the Hills, IL;
3015 W. 86th St., Indianapolis, IN; and 7050 Watts Rd., Madison,
WI. The Madison-based store is the first one in the Wisconsin
market.
As of Feb 28, 2019, the company’s store count was 183, including
the recent ones. The company, which is based on a warehouse model,
hires nearly 25 new team members for each of its new store.
Store Expansion Strategy on Track
The company remains on track to realize its real estate strategy of
600-plus store potential. New store expansion is one of the key
long-term growth strategies of the company. Notably, net sales in
the first nine months of 2018 grew 23.6% year over year to $811.8
million, of which new stores contributed nearly $138.1
million.
At Home is optimistic about delivering solid results in fiscal
2020.The company expects fiscal 2020 mix to be similar to fiscal
2019, with approximately 80% second-generation locations and 20%
new store builds.
It has plans to open seven new superstores and expects net sales
within $347-$352 million in the fourth quarter of fiscal 2019,
which is slated to be announced on Mar 27. The company expects
comps growth between 1% and 2% or 6.2% and 7.2% on a two-year basis
during the same period.
At Home is expected to generate more revenues, going forward, owing
to continuous superstore expansion, based on disciplined site
selection, growing brand awareness and team member execution. The
company is well positioned for the upcoming quarters as well, as it
has already pipelined a substantial portion of superstore for
fiscal 2020.
Notably, shares of At Home have gained 24.7%, outperforming its
industry’s rally of 19.5% in the past three months, backed by solid
earnings surprise history. The company’s earnings have surpassed
the Zacks Consensus Estimate in each of the trailing six
quarters.
Zacks Rank & Key Picks
At Home currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the Retail-Wholesale sector are RH RH,
Williams-Sonoma, Inc. WSM and Haverty Furniture Companies, Inc.
HVT. While RH sports a Zacks Rank #1 (Strong Buy), Williams-Sonoma
and Haverty carry a Zacks Rank #2 (Buy). You can see the
complete list of today’s Zacks #1 Rank stocks here.
RH, Williams-Sonoma and Haverty’s earnings surpassed the Zacks
Consensus Estimate in each of the trailing four quarters, with
average positive surprise of 23.5%, 9.6%, and 19.3%,
respectively.
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At Home Group Inc. (HOME) :
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Companies, Inc. (HVT) : Free Stock Analysis Report
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