At Home Group Inc. HOME continues with its store expansion spree, via addition of new stores in Florida, New Jersey and Georgia. The company currently operates in more than 175 stores across 36 states.
Based on a warehouse model, At Home superstores offer more than 50,000 diversified on-trend home products, with 400 new products updated every week. Strategic Initiatives to Drive Growth
New store expansion, being one of the key long-term growth strategies, has been expanding its footprint at a 21% compounded annual growth rate for more than five years. During the first six months of fiscal 2019, the company opened 18 new superstores compared with 15 in the prior-year period. The company has plans to open stores in California and Washington State in the upcoming quarters.
In the first six months of fiscal 2019, the company's net sales grew 22.7% year over year to $544.7 million. New stores contributed approximately $93.4 million to its revenues in the said period.
Moreover, the company plans to open 8-10 new superstores and expects revenues to increase more than 20% in the third quarter, which would represent the 18th consecutive quarter of growth rate of 20-plus-percent. Meanwhile, the company also expects comps growth between 4.5% and 5%, which will represent the 19th consecutive quarter of positive comps growth.
At Home is expected to generate more revenues owing to its continuous superstore expansion, based on disciplined site selection, growing brand awareness and team member execution. The company is well positioned for the upcoming quarters as well, as it has already approved a substantial portion of fiscal 2020 pipeline and identified new sites for fiscal 2021.
Meanwhile, shares of At Home have gained 19.3% against its industry
's decline of 11.7% over a year. Also, the company's earnings surpassed the Zacks Consensus Estimates in the trailing four quarters, with average surprise of 19.3%. Earnings estimates for fiscal 2019 and 2020 have remained stable over the past 60 days. Zacks Rank & Key Picks
At Home currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Retail-Wholesale
sector are RH RH
, Darden Restaurants, Inc. DRI
and Boot Barn Holdings, Inc. BOOT
, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report At Home Group Inc. (HOME): Free Stock Analysis Report Darden Restaurants, Inc. (DRI): Free Stock Analysis Report Restoration Hardware Holdings Inc. (RH): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research