At Home (HOME) on Expansion Spree, Opens 3 Stores in March
In a bid to expand presence, At Home Group Inc. HOME announced the opening of three new stores in March, boosting the company’s presence. These stores are located at 19460 Compass Creek Parkwa, Leesburg, VA; 2201 NW 138 Street, Oklahoma City, OK; 900 Metropolitan Avenue, Charlotte, NC.
As of Mar 2021, the company’s store count is 225, including the recent ones operating in 40 states. The interior decoration megastore offers 50,000 trendy household items, each store averaging over 100,000 square feet.
Store Expansion Plan & Share Performance
At Home is a home décor superstore, with presently 225 large format stores. New store expansion is one of the company’s key long-term growth strategies. The company majorly focuses on expanding opportunities in existing and new U.S. markets. At Home’s top-line performance is mainly attributable to store openings on a regular basis. It believes that it has the potential to expand its store count to at least 600 stores in the United States. Notably, new stores in existing markets have increased brand presence of late, thereby boosting the company’s total market share.
At Home opened 32 net new stores in fiscal 2020. Among these, six new stores were opened since third-quarter fiscal 2020, up 2.8% year over year. It now expects to open 12 to 15 new stores in fiscal 2022 versus its prior plan of seven to 10 stores. The company believes in serving customers something new and exciting every time they visit stores.
Going forward, At Home is anticipated to generate more revenues owing to continuous superstore expansion, based on disciplined site selection, growing brand awareness and team member execution.
At Home’s shares have surged 100.8% in the past six months compared with the industry’s 39.4% rally. Also, the company’s earnings estimates for fiscal 2021 have moved up over the past 60 days, depicting analysts' optimism over its bottom-line growth potential. This faith is backed by the company’s robust comps performance and increase in store count.
Zacks Rank
At Home — which shares space with Williams-Sonoma, Inc. WSM, RH RH and Fortune Brands Home & Security, Inc. FBHS in the Zacks Retail - Home Furnishings industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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