At Home Group (HOME) Reports In-Line Q1 EPS; Increases Mid-Point of FY EPS

At Home Group (NYSE: HOME) reported Q1 EPS of $0.19, in-line with the analyst estimate of $0.19. Revenue for the quarter came in at $211.8 million versus the consensus estimate of $208.66 million.

Comparable store sales increased 5.8%.

"We are pleased to have started fiscal 2018 on a very positive note by delivering a 23% net sales increase, a 32% increase in pro forma adjusted net income1 and pro forma adjusted EPS1 of $0.19. This was our 12th consecutive quarter of over 20% net sales growth driven by broad-based success across new and existing stores, geographies and product categories. Comparable store sales increased 5.8%, representing our 13th consecutive quarter of positive comparable store sales growth. This strength and consistency demonstrates how well the At Home value proposition continues to resonate with customers as we expand our brand in both new and existing markets."

Mr. Bird continued, "It is still early in the year, but we feel very good about our first quarter performance and are raising our top line expectations and the midpoint of our fiscal 2018 EPS outlook. We continue to pursue many exciting initiatives to drive sales and earnings performance in fiscal 2018, and the entire At Home team remains committed to constantly elevating our customer experience with exciting marketing campaigns, a compelling merchandise assortment at value price points and an ever-improving in-store environment."

GUIDANCE:

At Home Group sees FY2018 EPS of $0.73-$0.75, versus the consensus of $0.75. At Home Group sees FY2018 revenue of $906-913 million.

Fiscal 2018 Outlook & Key Assumptions

Judd Nystrom, Chief Financial Officer, stated: "We are very pleased with the strength of our business in the first quarter and expect to deliver another year of substantial growth. We are therefore raising our fiscal 2018 net sales outlook to $906 million to $913 million, representing growth of 18% to 19%, and increasing the midpoint of our pro forma adjusted EPS range, bringing our outlook to $0.73 to $0.75. Our top line strength continues to provide us the flexibility to reinvest in compelling long-term opportunities such as brand awareness and direct sourcing as we remain focused on delivering against our short and longer-term operational and financial goals.\" Below is an overview of our outlook for selected fiscal 2018 financial data and related assumptions:

• Net sales are expected to be in a range of $906 million to $913 million. Our net sales growth outlook is based on 28 gross and 25 net new store openings and an assumed comparable store sales increase of approximately 3.0%.
• Net income is expected to be in a range of $39.4 million to $41.0 million based on an assumed 37.5% annual effective tax rate for fiscal 2018 and interest expense of approximately $20 million.
• Pro forma adjusted net income1 is expected to be in a range of $46.1 million to $47.5 million2, representing growth of 26% to 30% over fiscal 2017.
• EPS is expected to be in a range of $0.62 to $0.64, with pro forma adjusted EPS1 in a range of $0.73 to $0.75, based on assumed diluted weighted average shares outstanding of approximately 63.5 million.
• Net capital expenditures are expected to be in a range of $110 million to $130 million, net of $100 million of assumed sale-leaseback proceeds, driven primarily by fiscal 2018 new store growth and the accelerated timing of expected new store openings in fiscal 2019.

For earnings history and earnings-related data on At Home Group (HOME) click here.

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