Eye-popping Stock: At Home Group Inc. (NYSE: HOME)

At Home Group Inc. (NYSE: HOME) changed 11.47% to recent value of $6.61. The stock transacted 2671651 shares during most recent day however it has an average volume of 3683.74K shares. It spotted trading -37.35% off 52-week high price. On the other end, the stock has been noted 450.83% away from the low price over the last 52-weeks.

At Home Group Inc. (HOME) recently reported its financial results for its first quarter ended April 25, 2020.

For the Thirteen Weeks Ended April 25, 2020

The Company opened six new stores in the first quarter of fiscal 2021 and ended the quarter with 218 stores in 39 states. The Company has opened a net 27 stores since the first quarter of fiscal 2020, representing a 14.1% increase.

Net sales reduced 38.0% to $189.8M from $306.3M in the first quarter of fiscal 2020 as a result of temporary store closures Because of the COVID-19 pandemic, partially offset by a net increase in the number of stores. Comparable store sales1 reduced 46.5% contrast to a decrease of 0.8% in the first quarter of fiscal 2020, as a result of temporary store closures Because of the COVID-19 pandemic.

Gross profit reduced 81.4% to $16.4M from $88.1M in the first quarter of fiscal 2020 primarily driven by the decrease in sales Because of the COVID-19 pandemic. Gross margin reduced to 8.6% from 28.8% in the previous year period primarily Because of deleverage on occupancy costs and depreciation as a result of the sales decline.

Selling, general and administrative expenses (“SG&A”) reduced 13.6% to $66.5M from $76.9M in the first quarter of fiscal 2020 primarily driven by our actions to reduce store-level and home office labor, advertising, and other discretionary expenses in response to the COVID-19 pandemic. Adjusted SG&A1 reduced 12.5% to $66.5M contrast to $76.0M in the first quarter of fiscal 2020. Adjusted SG&A1 as a percentage of net sales increased to 35.0% from 24.8% primarily Because of deleverage on lower sales, partially offset by our successful efforts to reduce operating expenses.

Operating loss was $(372.1M) contrast to operating income of $25.9M in the first quarter of fiscal 2020 primarily Because of a non-cash goodwill impairment charge of $319.7M recognized in the first quarter of fiscal 2021 and the impact of temporary store closures Because of the COVID-19 pandemic. Adjusted operating income1 was a loss of $(52.3M) contrast to income of $10.3M in the first quarter of fiscal 2020. Adjusted operating margin1 was (27.6%) contrast to 3.4% in the first quarter of fiscal 2020 driven by the gross margin and adjusted SG&A1 factors described above.

Interest expense reduced to $7.0M from $7.8M in the first quarter of fiscal 2020Because of a year-over-year decrease in average interest rates, partially offset by increased borrowings under our revolving credit facility (“ABL facility”).

Income tax benefit was $20.1M contrast to income tax expense of $4.2M in the first quarter of fiscal 2020. The effective tax rate reduced to 5.3% from 23.4% for the first quarter of fiscal 2020Because of the tax impact of the non-cash goodwill impairment charge and net operating loss carryback provisions under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act).

Net loss was $(358.9M) contrast to net income of $13.9M in the first quarter of fiscal 2020. Adjusted Net income1 was a loss of $(39.2M) contrast to income of $1.9M in the first quarter of fiscal 2020.

EPS was $(5.60) contrast to $0.21 in the first quarter of fiscal 2020. Adjusted EPS1 was $(0.61) contrast to $0.03 in the first quarter of fiscal 2020.

Adjusted EBITDA1 was $(14.6M) contrast to $33.8M in the first quarter of fiscal 2020.

Balance Sheet Highlights as of April 25, 2020

Net inventories reduced 0.3% to $407.0M from $408.0M as of April 27, 2019 primarily Because of reduced inventory purchases in response to the COVID-19 pandemic, partially offset by a 14.1% increase in the number of stores.

Total cash was $43.6M and borrowings accessible under our ABL facility was $44.1M; however, our ability to incur additional borrowings would have been limited by $38.7MBecause of the consolidated fixed charge coverage ratio described in our Quarterly Report on Form 10-Q for the thirteen weeks ended April 25, 2020 in “—Liquidity and Capital Resources.” As of June 16, 2020, our estimated total liquidity was over $200M.

Long-term debt was $334.2M contrast to $336.8M as of April 27, 2019. Additionally, there was $342.0M outstanding under our ABL facility as of April 25, 2020 contrast to $228.0M as of April 27, 2019. Increased borrowings were primarily driven by a net increase of 27 new stores year-over-year as well as our decision to draw an additional $55M under our ABL facility during the quarter as a precautionary measure to provide more financial flexibility and maintain liquidity in response to the COVID-19 pandemic.

HOME has a gross margin of 28.40% and an operating margin of -11.70% while its profit margin remained -15.70% for the last 12 months. Its earnings per share (EPS) expected to touch remained -558.50% for this year while earning per share for the next 5-years is expected to reach at -14.60%.  The company has 61.67M of outstanding shares and 48.16M shares were floated in the market. According to the most recent quarter its current ratio was 0.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of 29.89% from the mean of 20 days, 101.33% from mean of 50 days SMA and performed 11.11% from mean of 200 days price. Company’s performance for the week was -3.92%, 157.20% for month and YTD performance remained 20.18%.

 

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