A big comparable store sales jump drove At Home to profits in the third quarter.
Net income was $47.1 million, or 71 cents per diluted share, compared to a net loss of $14.6 million, or 23 cents per diluted share, in the 2019 period, the company stated. Adjusted net income was $49.6 million, or 74 cents per share, versus a net loss of $300,000, or an effective zero cents per diluted share, in the prior-year period.
At Home topped a MarketBeat-published analyst consensus adjusted earnings per share estimate of 63 cents for the quarter.
Net sales gained 47.5% to $470 million from the 2019 quarter based on a 44.1% increase in comparable sales and a net increase in open stores, according to At Home. Operating income was $71.3 million versus $2 million in the period a year earlier. Adjusted operating income increased to $71.3 million from $8.5 million in the year-before quarter.
Lee Bird, At Home chairman and CEO, said, “We not only delivered record comps of 44% in the third quarter, but also generated strong earnings flow through as well as excellent free cash flow. Our leverage ratio of 0.9 times is our lowest ever as a public company and reflects continued strength in our business and the significant transformation of our balance sheet. Our inventory position is improving meaningfully, and fourth quarter performance to date has remained strong as our customers continue to find joy in refreshing their homes and decorating for the holidays.”
In the longer term, Bird said, “I couldn’t be more excited about our ability to expand our market share in a large, highly fragmented and growing industry. We have the potential to grow our store base nearly three times larger, and our real estate opportunities are only getting stronger. We also believe we can drive revenue per store significantly higher through both our in-store and omnichannel strategies. With our unique, value-oriented offering, talented team members and growing loyalty base, we can be the home décor retailer of choice for years to come.”