At Home CEO Lee Bird asserted that unseasonable weather across its markets impacted the company’s first quarter financial results, with comparable store sales below expectations.
The company posted net income of $13.9 million, or 21 cents per diluted share, versus $18.4 million, or 28 cents per diluted share, in the year-earlier period. Adjusted net income, excluding the effects of one-time charges, was $1.9 million, or three cents per share, versus $18.2 million, or 28 cents per diluted share, in the year-previous period.
Adjusted earnings per share beat a MarketBeat-published analyst consensus estimate by a penny.
Comparable store sales slipped 0.8% in the quarter year over year. Net sales were $306.3 million versus $256.2 million in the quarter a year prior. Operating income was $25.9 million versus $24.2 million in the previous first quarter.
Bird stated, “It was a challenging first quarter as we faced unusually adverse weather across a majority of our markets, resulting in comparable store sales below our expectations. However, favorability in new store weeks and the solid productivity of our non-comp stores enabled us to deliver nearly 20% net sales growth and adjusted earnings per share at the low end of our outlook range. Because of the challenging weather, we have already taken swift markdown actions in order to sell through the necessary product at lower than expected margins and head into the fall in a cleaner inventory position.”
Bird added that, in the quarter, “we continued to make great operational progress against our key strategic priorities including our second distribution center, which is ramping on time and under budget. Our direct sourcing penetration continues to grow, and both our loyalty program and brand awareness continue to expand. We are focused on making continued progress against all of our strategic priorities in fiscal 2020 and beyond.”
As a result of the soft opening quarter, At Home recast its guidance for the current fiscal year, with adjusted earnings per share now at $1.17 versus $1.30 previously.