COVID-19 drove At Home to first quarter losses, but the company stated that consumers are responding to store reopenings.
In the quarter, At Home’s net loss was $358.9 million, or $5.60 per diluted share, the company stated, versus net income of $13.9 million, or 21 cents per diluted share, in the period a year earlier.
Adjusted for one-time events, net loss was $39.2 million, or 61 cents per diluted share, versus net income of $1.9 million, or three cents per diluted share, in the year-prior quarter.
A Zacks Investment Research analyst consensus estimate was for an adjusted diluted earnings per share loss of 39 cents per share in the period.
Comparable store sales tumbled 46.5% in the period year over year, At Home reported, with coronavirus-related store closings driving the metric down. Net sales were $189.8 million versus $306.3 million in the quarter a year before. Operating loss was $372.1 million versus operating income of $25.9 million in the year-previous period. Adjusted, operating loss was $52.3 million versus operating income of $10.3 million in the quarter a year past, At Home noted.
In introducing the financial results, Lee Bird, At Home chairman and CEO, said, “Over the last few months, our team has risen to the challenge and focused on prioritizing the health and safety of our team members, customers and communities. We have focused on preserving liquidity, enhancing financial flexibility and ensuring At Home can thrive going forward. Prior to the onset of COVID-19, we had seen an improvement in comparable store sales trends. However, as the pandemic escalated and we temporarily closed our stores, sales were materially impacted. We acted quickly and deliberately to continue serving our customers during a time when they are spending more time at home than ever and to provide them with safe and convenient ways to shop with us. Since early May, as local and state mandates were lifted, we began reopening a majority of our stores. Early results are strong across all markets with initial sales in reopened stores up solid double-digits during their reopening period quarter-to-date. As the low-price leader in our category with a focus on expanding our omnichannel presence, I am confident that At Home is well positioned for both the near and long-term to take additional share of the large and fragmented home furnishings market.”