Stock Monitor: Bassett Furniture Industries Post Earnings Reporting
LONDON, UK / ACCESSWIRE / July 9, 2018 / If you want access to our free earnings report on At Home Group Inc. (NYSE: HOME), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HOME. At Home Group reported its first quarter fiscal 2019 operating and financial results on June 07, 2018. The home decor retailer outpaced earnings expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the first quarter ended April 28, 2018, At Home Group's net sales increased 20.9% to $256.2 million from $211.8 million in Q1 FY18, driven by the net addition of 27 stores since the year earlier comparable quarter and a comparable store sales increase of 0.9%. The Company's reported numbers lagged behind analysts' estimates of $256.6 million.
At Home Group's expanded its store footprint by opening nine new stores and relocating two stores in Q1 FY19. The Company ended the quarter with 156 stores in 34 states, which represents a 20.9% increase in store count since April 29, 2017.
During Q1 FY19, At Home Group's gross profit increased 18.6% to $85.2 million from $71.9 million in Q1 FY18. The Company's gross margin contracted by 60 basis points (bps) to 33.3% in the reported quarter from 33.9% in the prior year's corresponding period primarily due to increased occupancy costs resulting from fiscal 2018 and 2019 sale-leaseback transactions and increased snow removal costs related to adverse weather conditions.
For Q1 FY19, At Home Group's selling, general, and administrative expenses (SG&A) increased 21.0% to $59.5 million from $49.1 million in Q1 FY18, primarily due to the net addition of 27 stores, a $3.7 million increase in advertising costs as we continue to grow consumer brand awareness, and a $0.5 million increase in transaction costs associated with the sale of its common shares by the Company's Sponsors.
At Home Group's operating income increased to $24.2 million in Q1 FY19 compared to $21.3 million in Q1 FY18. The Company's operating margin during the reported quarter decreased 70 bps to 9.4% of net sales primarily due to a decrease in gross margin. The Company's adjusted operating income advanced 8.3% to $26.0 million in the reported quarter from $24.0 million in the year earlier same quarter. For Q1 FY19, At Home Group's adjusted operating margin contracted by 110 bps to 10.2% of net sales as a result of increased advertising costs and a decrease in gross margin.
At Home Group's income tax expense was $0.1 million compared to $6.4 million in Q1 FY18. A reduction in the federal tax rate resulting from the Tax Cuts and Jobs Act of 2017 (the "Tax Act") combined with excess tax benefits related to stock option exercises decreased the Company's effective tax rate to 0.3% from 38.9% in the prior year's comparable quarter.
For Q1 FY19, At Home Group recorded net income of $18.4 million, or $0.18 per share, compared to earnings of $10.0 million, or $0.16 per share, in Q1 FY18. The Company's reported quarter pro-forma adjusted net income grew 68.1% to $20.1 million, or $0.31 per share, versus $12.0 million, or $0.19 per share, in the year earlier corresponding quarter. At Home Group's reported numbers surpassed Wall Street's estimates of $0.27 per share.
As of April 28, 2018, At Home Group's net inventories increased 12.3% to $283.1 million compared to $252.1 million as of April 29, 2017, primarily due to a 20.9% increase in the number of open stores.
As of April 28, 2018, At Home Group's total liquidity (cash plus $80.9 million of availability under its revolving credit facility) was $94.4 million. The Company's total debt at the end of the reported quarter was $298.7 million compared to $309.7 million at the end of the prior year's same quarter. At Home Group had 183.5 million outstanding under the revolving credit facility as of April 28, 2018.
Stock Performance Snapshot
July 06, 2018 - At Friday's closing bell, At Home Group's stock rose 1.23%, ending the trading session at $40.45.
Volume traded for the day: 457.38 thousand shares.
Stock performance in the last month – up 13.18%; previous three-month period – up 19.96%; past twelve-month period – up 67.98%; and year-to-date – up 33.10%
After last Friday's close, At Home Group's market cap was at $2.47 billion.
Price to Earnings (P/E) ratio was at 46.39.
The stock is part of the Consumer Goods sector, categorized under the Home Furnishings & Fixtures industry. This sector was up 0.6% at the end of the session.
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