Indications to Identify Price Guidance: At Home Group Inc.’s (NYSE: HOME)

On Thursday, At Home Group Inc.’s (NYSE: HOME) oscillated between $8.52 and $9.38 before concluding trading period lower/higher -0.67% at $8.95. The stock recorded total trading quantity of 4,460,433 shares as compared to its average volume of 3,702,001 shares.

At Home Group Inc. (HOME) recently reported its financial results for the second quarter ended July 27, 2019.

For the Thirteen Weeks Ended July 27, 2019

  • The Company opened 13 new stores in the second quarter of fiscal 2020 and ended the quarter with 204 stores in 39 states. The Company has opened a net 39 stores since the second quarter of fiscal 2019, representing a 23.6% increase.
  • Net sales increased 18.7% to $342.3M from $288.5M in the quarter ended July 28, 2018 driven by the net increase in open stores. Comparable store sales1reduced 0.4% primarily Because of adverse weather conditions early in the quarter.
  • Gross profit increased 3.1% to $100.4M from $97.4M in the second quarter of fiscal 2019. Gross margin reduced 450 basis points to 29.3% from 33.8% in the previous year period primarily as a result of product margin contraction Because of incremental markdowns, increased occupancy costs resulting from both the adoption of ASC 842 “Leases” as well as fiscal 2020 and 2019 sale-leaseback transactions, and costs associated with opening the Company’s second distribution center.
  • Selling, general and administrative expenses (“SG&A”) reduced 28.7% to $76.7M from $107.6M in the previous year period, primarily Because of the non recurrence of $41.5M of one-time, non-cash CEO stock-based compensation expense recognized in the second quarter of fiscal 2019. Adjusted SG&A1increased 16.3% to $75.4M contrast to a recast3 $64.8M in the second quarter of fiscal 2019. Adjusted SG&A1 as a percentage of net sales improved by 50 basis points on a recast3 basis to 22.0%, primarily Because of leverage of corporate overhead.
  • Operating income was $21.8M contrast to a loss of $11.8M in the second quarter of fiscal 2019. Adjusted operating income1reduced 18.2% to $23.2M from a recast3 $28.3M in the second quarter of fiscal 2019. Adjusted operating margin1 reduced 300 basis points on a recast3 basis to 6.8% of net sales driven by the gross margin and adjusted SG&A1 factors described above.
  • Interest expense increased to $8.2M from $6.7M in the second quarter of fiscal 2019Because of increased borrowings to support our growth strategies and a year-over-year increase in interest rates.
  • Income tax expense was $3.2M, and the effective tax rate was 23.5%. In the second quarter of fiscal 2019, a pre-tax loss, partially offset by recognition of excess tax benefits related to stock option exercises, drove an income tax benefit of $8.4M.
  • Net income was $10.4M contrast to a net loss of $10.1M in the second quarter of fiscal 2019. Adjusted Net Income1was $11.4M contrast to a recast3 $20.6M in the second quarter of fiscal 2019.
  • EPS was $0.16 contrast to $(0.16) in the second quarter of fiscal 2019. Pro forma adjusted EPS1was $0.18 contrast to a recast3 $0.31 in the second quarter of fiscal 2019.
  • Adjusted EBITDA1reduced 4.4% to $47.1M from a recast3 $49.3M in the second quarter of fiscal 2019.

For the Twenty-six Weeks Ended July 27, 2019

  • Net sales increased 19.1% to $648.6M from $544.7M in the first half of fiscal 2019, driven by the net increase in open stores. Comparable store sales1reduced 0.6% primarily Because of adverse weather conditions.
  • Gross profit increased 3.2% to $188.4M from $182.6M in the first half of fiscal 2019. Gross margin reduced 440 basis points to 29.1% from 33.5% in the previous year period primarily Because of product margin contraction Because of incremental markdowns, increased occupancy costs resulting from both the adoption of ASC 842 “Leases” and fiscal 2020 and 2019 sale-leaseback transactions, and costs associated with opening the Company’s second distribution center.
  • SG&A reduced 8.0% to $153.6M from $167.1M in the first half of fiscal 2019, primarily Because of the non recurrence of $41.5M of one-time, non-cash CEO stock-based compensation expense recognized in the second quarter of fiscal 2019. Adjusted SG&A1increased 23.0% to $151.4M contrast to a recast3 $123.0M in the first half of fiscal 2019. Adjusted SG&A1 as a percentage of net sales increased 70 basis points on a recast3 basis to 23.3% primarily Because of increased store labor, advertising and pre opening expenses to support our growth strategies, partially offset by leverage of corporate overhead.
  • Operating income was $47.7M contrast to $12.4M in the first half of fiscal 2019. Adjusted operating income1reduced 35.0% to $33.5M from a recast3 $51.5M in the first half of fiscal 2019. Adjusted operating margin1 reduced 430 basis points on a recast3 basis to 5.2% of net sales driven by the gross margin and adjusted SG&A1 factors described above.
  • Interest expense increased to $16.0M from $12.5M in the first half of fiscal 2019Because of increased borrowings to support our growth strategies and a year-over-year increase in interest rates.
  • Income tax expense was $7.4M, and the effective tax rate was 23.4%. In the first half of fiscal 2019, a pre-tax loss, partially offset by recognition of excess tax benefits related to stock option exercises, drove an income tax benefit of $8.4M.
  • Net income increased to $24.3M contrast to $8.3M in the first half of fiscal 2019. Adjusted Net Income1was $13.3M contrast to a recast3 $38.8M in the first half of fiscal 2019.
  • EPS was $0.37 contrast to $0.13 in the first half of fiscal 2019. Pro forma adjusted EPS1was $0.20 contrast to a recast3 $0.59 in the first half of fiscal 2019.
  • Adjusted EBITDA1reduced 10.7% to $80.9M from a recast3 $90.6M in the first half of fiscal 2019.

The P/E ratio was recorded at 9.14.The volatility in the previous week has experienced by 11.46% and observed of 9.57% in the previous month.96.90% ownership is held by institutional investors while insiders hold ownership of 0.40%.

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