At Home Group’s (HOME) on Q1 2018

posted in: Earnings Call, Notes | 0

Lee Bird – Chairman, CEO and President

A strong quarter

“Each quarter we have seen strong new performance and for the first quarter of fiscal 2018 with no exception with openings in markets …This strong performance is especially notable in a quarter like Q1 where six of our seven openings were in brand new markets. Again underscoring affordability of our concept and validating the substantial store growth opportunity that lies ahead.”

Comp stores sales to be higher

“We expect that comp store sales through the second quarter will be higher than our full year outlook with lower comp performance in the second half of the year as we lapped strong third and fourth quarter results.”

Judd Nystrom – CFO

Strong top-line growth

“We increased first quarter net sales by 23.1% to $211.8 million representing our 12th consecutive quarter of 20 plus percent net sales growth. Our Q1 comp of 5.8% delivered our 13th consecutive quarter of positive comp store sales. Strength was broad based across product categories, geographies and vintages with stores greater than 5 years old comping in line with the teen average….”

No choppiness in retail

“We did not see the choppiness that other retailers have highlighted…. We exited on a strong note and we said that the momentum has continued into the second quarter and we are very pleased with our business through the first 4 months of the year.”

Increased inventory levels

“net inventory increased 43.7% over the same quarter last year….New store growth…drove two-thirds of the increase. The remaining third of the increase was driven by our investments in incremental low price inventories during the second half of last year including the associated transportation costs that will turn through profit sales in the upcoming second quarter of fiscal 2018.”

There are several closures and they are picking some pieces up

“There is a whole lot of news out there about closures and so that creates great opportunities for us. I would tell you our pipeline has never been deeper. I like the quality of the pipeline and deeper the pipeline the more picky you can be against it…the deeper the pipeline gives you more flexibility against landlord¬†“