At Home Group Inc HOME shares are plummeting after releasing its third-quarter earnings report.
Earnings came in flat, and sales totaled $318.7 million, beating estimates by $3.84 million.
At Home sees fourth-quarter adjusted earnings of 31-36 cents per share, well short of the 49-cent per share consensus estimate. Fiscal year 2020 earnings guidance was also below estimates, coming in at 51-56 cents.
Fourth-quarter sales are projected to come in at $385 million to $393 million, well short of the $413.6 million estimate.
“We delivered our 23rd straight quarter of at least high teens revenue growth and exceeded our profit guidance, driven by strong productivity of our new stores and outperformance in our Fall and Halloween assortments," CEO Lee Bird said in a release. "We are also pleased that our disciplined efforts to improve our inventory position have been highly effective.
"However, our revised outlook for the year primarily reflects weaker performance in our Christmas offering, largely driven by a more promotional holiday environment and the impact of a late Thanksgiving. As a result, we are taking decisive pricing action to address this issue within the current quarter.”
At Home's stock traded down more than 27% to $6.18 per share in the after-hours session. Shares closed the regular session at $8.55.
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