|Day's Range||1.9000 - 2.0000|
If you own shares in At Home Group Inc. (NYSE:HOME) then it's worth thinking about how it contributes to the...
(Bloomberg) -- After Lee Bird witnessed At Home Group Inc. lose half its market value in one day this June, the chief executive officer decided to reconsider everything.“This past 90 days has been a revisit of our whole business,” Bird said in an interview. “We obviously lost the faith of our investors.”In response, the home-goods retailer pulled back on its ambitious store-opening plans and revamped marketing to tout what it claims are the lowest prices in the industry. And after staying out of the e-commerce fray because the cost of implementation and shipping could hamper profit, the company now plans a full online offering by 2022.The efforts come none too soon, as a shakeout in retail has left legacy chains struggling to survive the arrival of digital-first competitors like Amazon.com Inc. and Wayfair Inc. Consumers at all income levels are also more discount-oriented, using the internet to seek out deals. At Home appeared immune to these woes until June 6 when weak sales and increased costs from President Trump’s tariffs on Chinese goods led to a cut in its earnings forecast that hammered the stock.“A long list of little things have gone against the company,” said Brad Thomas, an analyst at KeyBanc Capital Markets. “A few have been company specific, but it’s more about housing slowing down about a year ago.”At Home also had little room for error, with its valuation soaring after revenue gained an average 23% annually over the past three years. But investors bolted after the company’s same-store sales fell the past two quarters -- the first declines since going public three years ago. The company’s earnings have also missed analysts’ projections twice in the past three quarters.“It’s hard, but I get paid a lot of money so no one is going to tear up for me,” said Bird, who bought $500,000 worth of shares on Monday.The stock had declined 54% this year through Tuesday’s close. Just a year ago, the retailer sold additional stock to the public for $33.20 a share. The shares climbed as much as 7% to $9.16 on Wednesday, their fourth straight daily gain. The increase in value-driven shoppers should put At Home in a solid position. Much like Costco Wholesale Corp., the chain has a low-cost operating model -- it opens stores cheaply in locations vacated by the likes of Sears and about 70% of its inventory is private label or exclusive.Pricing ModelThat helps the retailer keep prices low, but not enough shoppers were getting the message because of “all the noise” on discounts and deals coming from competitors, Bird said. At Home uses a pricing model of everyday low prices -- a strategy popularized by Walmart Inc. that eschews promotions and instead tries to convince shoppers of constant value. Meanwhile, most retailers employ a model of high introductory prices and then discounts.“The average American is not aware that At Home is a low-price leader,” KeyBanc’s Thomas said.To help remedy this, At Home for the first time is running regular shopping events every two weeks, often tied to seasonal events. There’s currently a focus on fall decor on its website and in stores. A year ago, the chain would have been highlighting a few specific deals, but not a whole category. Early results are that it’s lifted sales, Bird said.Besides opening stores, revenue gains will also come from its first push online, he said. In the fourth quarter, the company will test letting customers buy items online and picking them up at stores. If all goes well, more locations will be added next year, with the goal of shipping purchases to customer’s homes from locations by 2022, he said.Despite the turmoil, the company still sees growing to 600 stores from 200 in the U.S. But it will get there at a slower pace, expanding 10% a year, down from a current rate of 17%. That means it would take more than a decade to reach that goal.“We know we have a huge white space in front of us,” Bird said. “I feel good about the adjustments we’ve made.”(Updates with share trading Wednesday in eighth paragraph. A previous version was corrected to show about 70% of inventory is private label or exclusive.)To contact the reporter on this story: Matt Townsend in New York at email@example.comTo contact the editors responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Lisa Wolfson, Jonathan RoederFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
CFO of At Home Group Inc (30-Year Financial, Insider Trades) Jeffrey R Knudson (insider trades) bought 10,000 shares of HOME on 09/09/2019 at an average price of $7.89 a share. Continue reading...
At Home's (HOME) store opening and marketing strategies bode well. However, higher occupancy, preopening and advertising expenses are concerns.
At Home Group Inc. has expanded its brick-and-mortar stores and increased net sales growth – but the expansion comes at a cost. At Home CEO Lee Bird discusses what's impacting the retailer right now.
Chairman, CEO and President of At Home Group Inc (30-Year Financial, Insider Trades) Lewis L Bird Iii (insider trades) bought 64,005 shares of HOME on 09/09/2019 at an average price of $7.81 a share. Continue reading...
At Home is doing what it can to navigate President Trump's trade war with China. CEO Lee Bird joins Yahoo Finance to talk about the war's impact on the retailer.
For his "Executive Decision" segment of Mad Money Friday night, Jim Cramer sat down with Lee Bird, chairman, president and CEO of At Home Group , the home goods retailer with shares that are off 78% for the year as investors fear Chinese tariffs will crimp earnings. Bird explained that At Home is still largely misunderstood by investors.
Home decoration retailer At Home Group Inc (NYSE: HOME ) reported Wednesday an EPS beat and revenue miss in its second quarter , which was interpreted differently by one bull and bear Street analyst. The ...
At Home (HOME) posts better-than-expected Q2 earnings, courtesy of higher store opening as well as solid marketing and merchandising initiatives
At Home Group (HOME) delivered earnings and revenue surprises of 20.00% and -0.33%, respectively, for the quarter ended July 2019. Do the numbers hold clues to what lies ahead for the stock?
PLANO, Texas-- -- Q2 net sales increased 18.7%; comparable store sales 1 decreased 0.4% Delivers Q2 EPS of $0.16 and Q2 pro forma adjusted EPS 1 of $0.18 Narrows net sales outlook and reiterates pro forma adjusted EPS 1 outlook for fiscal 2020 Updates growth targets At Home Group Inc. , the home décor superstore, today announced its financial results for the second quarter ended July 27, 2019. Lee ...
Don't be caught off-guard: At Home Group (NYSE: HOME ) releases its next round of earnings this Wednesday, September 4. Want to skip the homework and get all the facts in one place? We thought so. Here ...
At Home Group (HOME) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
With more than 50,000 décor items for every room, every style and every budget, the decorating possibilities are endless in Riverside, Tempe and Grand Chute
At Home Group Inc. (HOME), the home décor superstore, today announced that its financial results for the second quarter of fiscal 2020 will be released after market close on Wednesday, September 4, 2019. A live audio webcast of the conference call, including certain supplemental materials, will be available online at investor.athome.com. In addition, the Company is scheduled to present at the Goldman Sachs 26th Annual Global Retailing Conference in New York City, on Thursday, September 5, 2019, at 1:40 pm Eastern Time.