At Home Group Sales Jump 41.3 Pct Amid ‘Transformational Year’

Home décor retailer At Home Group Inc. reported that net sales surged 41.3 percent in the fourth quarter, according to a press release.

The company posted $1.08 in earnings per share on $562 million in net sales for the fourth quarter, which, like the company’s fiscal year, contained one additional week. The results exceeded analysts’ expectations of 69 cents per share on $525.81 million in revenue.

“The fourth quarter was a very strong finish to a transformational year for At Home,” Chairman and CEO Lee Bird said in the release. “We delivered comps of nearly 31 percent for the quarter, leading to record-setting full-year comps above 19 percent and free cash flow improvement of more than $400 million.” Bird said the company posted those results even with “unprecedented challenges,” such as required store closures and “inventory constraints.” However, selling, general and administrative expenses jumped 56.9 percent to $115.9 million from $73.8 million in the prior-year period.

At Home reported that net inventories dropped 12.8 percent to $364.5 million as of Jan. 30, 2021, from $417.8 million as of Jan. 25, 2020. The company said the fall was mainly due to formidable demand for its merchandise and decreased inventory buys as its stores were closed for a time because of the pandemic.

The company didn’t open any new retail locations in the fourth quarter of fiscal 2021. It finished out the quarter with just under 220 retail locations in 40 states.

In terms of outlook, At Home isn’t presently offering formal guidance because of “the unprecedented and continued uncertainty related to COVID-19.”

The news comes as Kirkland’s Inc. reported as part of its financial results that comparable sales increased by 1.8 percent, with the inclusion of eCommerce expansion of 35.5 percent for the fourth quarter of 2020. The home décor retailer also reported that gross margin grew from 29.8 percent the prior year to 37.7 percent. As for its overall results, Kirkland’s posted $1.40 in adjusted earnings per diluted share on $194.9 million in net sales.