Plano, Texas – Six product categories generated outsized growth during At Home’s strong third quarter.
With same-store sales jumping 44%, chairman and CEO Lee Bird told analysts the biggest performers included wall décor, textiles, accent décor, kitchen, entertaining and home organization.
“We believe we are continuing to gain meaningful market share and emerge as a major winner in the home décor space,” he said during a call today to discuss preliminary Q3 results.
Other takeaways from the quarter:
- Comp sales were even higher than the record level set in Q2.
- Halloween and fall merchandise are already 90% sold through at full price compared to 70% at this point last year. Christmas merchandise has generated strong demand and performed ahead of plan in Q3.
- The total home collection launched last month with designer Grace Mitchell is showing particular strength in décor, textiles and furniture.
- At Home is on track to direct source 20% of its inventory this year, up from 15% at the end of last year. The goal is to reach 30% over the next two years.
- The company’s loyalty program added 2.4 million members in Q3 alone and nearly 5 million over the past two quarters. Membership is now 8.3 million and growing.
“We also expect to remain a beneficiary of favorable macro trends such as nesting and de-urbanization,” said Bird.
For the third quarter ended Oct. 24, preliminary results include:
- Net sales of approximately $470 million, representing 47% growth year-over-year
- EPS of $0.58 to $0.62, including a $(0.04) impact of debt refinancing costs, as compared to EPS of $(0.23) and adjusted EPS2 of $0.00 in the third quarter of fiscal 2020
- Total liquidity (cash plus availability under At Home’s existing credit facility) of more than $350 million