At Home grew its net sales in the third quarter but comps declined, with the retailer pointing in part to unfavorable customer response to tariff-related price increases.
Net loss in the third quarter ended October 26, 2019, was $14.6 million compared to net income of $11.1 million in the third quarter of fiscal 2019. Earnings per share was a loss of $0.23 compared to $0.17 in the third quarter of fiscal 2019.
Net sales in the third quarter increased 19.3% to $318.7 million from $267.2 million in the previous third quarter driven by the net increase in open stores. Comparable store sales decreased 2% compared to an increase of 5.2% in the third quarter of fiscal 2019, primarily driven by unfavorable customer response in certain categories to tariff-related strategic price increases.
Lee Bird, chairman and CEO, At Home, said, “We delivered our 23rd straight quarter of at least high teens revenue growth and exceeded our profit guidance, driven by strong productivity of our new stores and outperformance in our Fall and Halloween assortments. We are also pleased that our disciplined efforts to improve our inventory position have been highly effective. However, our revised outlook for the year primarily reflects weaker performance in our Christmas offering, largely driven by a more promotional holiday environment and the impact of a late Thanksgiving. As a result, we are taking decisive pricing action to address this issue within the current quarter.”
Bird added, “Looking forward, we remain excited about the upcoming launch of both our ‘EDLP+’ go-to-market strategy and omnichannel test, as well as the continued enhancement of our growing loyalty program. With these compelling strategic initiatives on the horizon and our increased emphasis on free cash flow and liquidity, we remain confident in the strength of our business model and its long-term potential.”