At Home Group’s (HOME) on Q1 2018

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 “

Home Group Inc. (HOME) Q2 2016 results

Lee Bird – President and CEO

The era of the careful consumer who spends thoughtfully

“I think the consumer has been careful with their money for some time now. People are thoughtful about where they spend it…They are very careful with their money, but they are still spending. What we want to make sure is that we get our portion of that spend. And that communication is going to continue to get stronger in our store.”

Shipping costs to go higher making it a modest headwind

“…we are seeing an uptick in the amount of what it costs to ship a container. Based on what we’ve heard, it is a couple of month type increase, not a huge increase overall when we look at it. We are on a weighted average cost and we turn our inventory two times a year. So when you think about the implication for this year, there isn’t one. When you think about the implication for next year, and we assume several months of higher shipping costs, there will be a modest headwind…”

Judd Nystrom – CFO

Q2 in sum

“During our fiscal second quarter we increased net sales by 20.8% to $188.4 million, driven by new store sales and a 0.9% increase in comparable store sales as compared to a 3.5% comparable store sales increase in the second quarter of last year.”
Transcript at http://finance.yahoo.com/news/edited-transcript-home-earnings-conference-010144797.html