Last week, At Home (HOME)’s Lewis Bird reaffirmed the company’s commitment to its expansion policy. The company’s CEO stated:
With our long-term goal of opening more than 600 stores nationwide, we continue to be excited about the significant white space in front of us
In other words, management is not considering slowing down their expansion policy.
As stated briefly in our initiation two weeks ago, this expansion policy may result in bankrupting the company given comps and margin deterioration. We believe that if current environment persists, we can see the stock