What happened
Shares of At Home Group (HOME) were climbing after the home furnishings retailer posted strong preliminary results ahead of two upcoming analyst conferences.
In response to surging comparable sales, investors sent the stock up 8.9% as of 11:01 a.m. EST.
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So what
At Home Group, which calls itself a home decor superstore, said that comparable sales jumped 23% to 24% in the key holiday quarter, compared to the company's guidance of mid- to high teens growth. It also said liquidity remained strong and cash on hand had risen from $34 million to $162 million.
CEO Lee Bird said in a statement: "Fourth quarter comps for both our everyday and seasonal assortments are playing out ahead of our expectations, and our balance sheet remains in great shape. We are excited about the continued strong momentum in our business and our inventory position as we head into fiscal 2022."
Now what
At Home shares have surged in recent months as the company has benefited from the boom in home goods sales, driven by the pandemic, which has led people to spend more time inside the home. At Home's third-quarter results were phenomenal, including a comparable sales increase of 44% and adjusted EBITDA nearly tripling to $93.8 million. The company didn't give an update on the bottom line in the fourth quarter, but profits likely surged as well.
Management will participate in a "fireside chat" with Wolfe Research at 1:50 p.m. EST Friday, and will take part in the ICR Conference Monday and Tuesday, Jan. 11 and 12.
