Shares of At Home Group (NYSE:HOME) have plunged today, down by 35% as of noon EST, after the company reported third-quarter earnings results. The home decor retailer is struggling to pass along tariff costs to consumers and cut its full-year outlook.
Revenue in the third quarter increased 19% to $318.7 million, exceeding the $314.8 million in sales that analysts were modeling for. That top-line growth was largely attributable to new store openings, as comparable-store sales declined 2%. The company said the poor comps were "primarily driven by unfavorable customer response in certain categories to tariff-related strategic price increases."
At Home Group reported an adjusted net loss of $300,000, or breakeven per share. Investors were expecting an adjusted net loss of $0.02 per share. The company also completed a sale-leaseback transaction during the quarter related to four properties.
At Home Group reduced its outlook for the fiscal year, with revenue now expected to be $1.35 billion to $1.36 billion, down from the prior forecast of $1.37 billion to $1.39 billion. The company expects comps to fall by 2% to 2.6%, compared to the previous guidance of a 1.5% decline to 0.5% increase. Adjusted earnings per share for fiscal 2020 should now be in the range of $0.51 to $0.56, down from the prior expectation of $0.67 to $0.74 per share in adjusted profits.
In a statement, CEO Lee Bird said At Home Group was cutting its guidance due to "weaker performance in our Christmas offering."