At Home beats Q2 estimates; raises sales outlook

At Home Group is on a roll — and then some.



The fast-growing, value home decor retailer on Tuesday reported its 14th consecutive quarter of same-store sales increases and 13th consecutive quarter of over 20% net sales growth.



In the second quarter ended July 29, At Home's net sales increased 23.2% to $232.1 million, from $188.4 million in the year-ago period. Analysts had expected sales of $227.1 million. Same-store sales rose 7.8%.



Net income totaled $9.5 million, compared to $6.3 million in the second quarter of fiscal 2017. Earnings, adjusted for one-time gains and costs, were 18 cents per share, which just beat estimates.



"Customers continue to respond positively to our trend-relevant assortment of home décor at a compelling value, driving growth in both new and existing stores across a wide range of geographies, price points, everyday and seasonal merchandise," said Lee Bird, chairman and CEO of At Home Group.



Based on its year-to-date performance, At Home raised are raised its 2018 net sales outlook to $916 million to $923 million, up from $906 million to $913 million, driven in part by an annual comparable store sales increase of approximately 3.5%.



"We remain focused on reinvesting in our long-term growth opportunities such as direct sourcing while increasing incentive compensation for our hard-working team members," CFO Judd Nystrom stated. "We are pleased to be reiterating our fiscal 2018 pro forma adjusted EPS outlook of $0.73 to $0.75 despite this reinvestment as well as some third quarter headwinds related to Hurricane Harvey."



At Home opened eight new stores in the quarter and closed one store, which was relocated within its existing market. It ended the quarter with 136 stores in 33 states, which represents an 18.3% increase in stores since July 30, 2016.