Shares in American home decor retail chain At Home Group (NYSE:HOME) are over 48% higher premarket after the company released preliminary second-quarter fiscal 2021 results after hours on Wednesday showing a net sales of 42% in comparable sales.
Its Q2 net sales came in at approximately $515 million, while the company expects a preliminary net income of at least $82 million and adjusted EBITDA of at least $150 million.
After the report was released, shares in the company surged in after-hours trading, currently 48.2% higher premarket at $13.99 per share after yesterday’s close of $9.44. At Home Group’s shares are up 71.64% for the year-to-date.
The business posted lacklustre results in fiscal Q1 2021, missing analysts estimates with its share price falling in the aftermath. However, its most recent report has provided a more positive tone for investors, although analysts surveyed by Tipranks are still unconvinced and see a potential 33.79% downside for the stock.
“We are emerging from this pandemic stronger and even better positioned, and we believe we are gaining meaningful market share. As a home décor category killer, we are becoming the go-to place for consumers looking for a one-stop shop that offers a wide and deep assortment, compelling everyday low prices, the convenience of omnichannel shopping, and safe social distancing afforded by our large store format,” said Lee Bird, At Home Group’s Chairman and Chief Executive.
He continued: “Our business continued to be strong following the initial re-opening period that was likely impacted by pent-up demand and stimulus spending. Our momentum continued despite competitor re-openings, liquidations and a resurgence in coronavirus cases in certain markets. We expect to report the best quarter in our history as a public company in terms of comparable store sales, sales, and profitability, and the lowest leverage ratio. At the same time, we remain excited about the large, untapped opportunity in front of us.”