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At Home Opens New Superstore in Longmont, Expands Footprint

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In an effort to expand its footprint, At Home Group Inc.HOME has added a new superstore at 955 S. Hover St. in Longmont, CO. The company currently operates in more than 175 stores across 36 states, and the current addition marks the fourth store in the state and 178th nationwide.

At Home superstore offers one of the largest holiday collections for both inside and outside the home. The Longmont At Home location is based on a warehouse model and offers more than 50,000 diversified on-trend home products.

Meanwhile, At Home plans to open its second store in Denver. New store expansion is one of the key long-term growth strategies of the company. Notably, net sales in the first nine months of 2018 grew 23.6% year over year to $811.8 million, of which new stores contributed nearly $138.1 million. Also, the company has opened 27 new superstores across both new and existing markets in the same period.

Moreover, it has long-term potential to add at least 600 locations to its superstore count. At Home's 10 stores are already under construction. Hence, the company is optimistic of fiscal 2020 results. The company expects fiscal 2020 mix to be similar to fiscal 2019, with approximately 80% second-generation locations and 20% new store builds.

Additionally, it plans to open seven new superstores and expects net sales within $347-$352 million in the fiscal fourth quarter. Meanwhile, the company also expects comps growth between 1% and 2% or 6.2% and 7.2% on a two-year basis.

At Home is expected to generate more revenues owing to 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.

However, shares of At Home have declined 38.1%, underperforming its industry 's fall of 23.7% over a year. Although the company's earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, earnings estimates for fiscal 2019 and 2020 have shifted downward over the past seven days. The downtrend has stemmed from expectation of delays in receipt of product and additional costs, which will hamper its fiscal fourth-quarter results. The company has been facing higher transportation costs over the past few weeks due to tariffs and port congestions, as retailers pull forward their shipments.

Nevertheless, its store expansion spree is likely to boost the top line in the upcoming quarters.

Zacks Rank & Key Picks

At Home currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the Retail-Wholesale sector are RH RH , Fossil Group, Inc. FOSL and Boot Barn Holdings, Inc. BOOT , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

RH, Fossil Group and Boot Barn's earnings for the current year are expected to increase 167.9%, 1,960%, and 78.6%, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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