Following its recent initial public offering, At Home reported strong second quarter growth, with a rise in net income and sales, as well as a slight comp gain.
For the second quarter ended July 30, its first as a public company, At Home Group posted net income of $6.3 million, or 12 cents per diluted share, versus a net loss of $46.1 million, or 91 cents per diluted share, in the year-earlier period.
Adjusted net income was $8.2 million, or 13 cents per diluted share, versus $9.7 million, or 16 cents per diluted share, in the year-prior quarter. Adjusted diluted earnings per share beat a MarketBeat published analyst average estimate by two cents.
Second quarter net sales increased 20.8% to $188.4 million year over year, while comparable store sales gained 0.9% from the 2015 period. Operating income came in at $18.9 million versus $21 million in the quarter a year previous.
Lee Bird, At Home president and CEO, stated, “The second fiscal quarter marked our ninth consecutive quarter of over 20% net sales growth and our 10th consecutive quarter of positive comparable store sales growth, reflecting the broad consumer appeal of our differentiated, value-oriented brand. This top-line performance, coupled with our efficient operating structure and strong execution by our teams, enabled us to deliver EPS of 12 cents and pro forma adjusted EPS of 13 cents while continuing to make planned investments to drive profitable growth.”
The retailer has continued on an expansion plan, opening 10 new locations in the quarter and signaling the potential for at least 600 stores.
He continued, “At Home is passionate about offering customers an unmatched breadth and depth of product at attractive values while enjoying industry-leading profitability metrics. With over 115 stores today and long-term potential for at least 600, we believe there is a long runway of growth ahead. We are focused on delivering against this opportunity with our proven, disciplined and flexible real estate strategy and compelling paybacks across a range of formats and markets. In addition, we are confident that our merchandising and marketing strategies, our talented team, as well as our previous investments in people, systems and processes, position us well to deliver on our short-term and long-term growth and profitability goals.”
At Home operates 115 stores in 29 states.
